The UK Gambling Commission Sets New Statutory Levy Rates for Licensees to Combat Gambling Harm
In a significant move to bolster the fight against gambling-related harm, the UK Gambling Commission has outlined the financial contributions required from each licensee as part of the newly established statutory levy. This initiative, which aims to accumulate £100 million (€115.3 million/$130.7 million) for harm prevention efforts, came into effect on April 6 and was introduced under the framework of the previous government’s 2023 Gambling Act white paper.
The rationale behind this mandatory levy stems from a belief that previous voluntary contributions from operators were insufficient to address the issues surrounding gambling harm effectively. During a Betting & Gaming Council AGM in February, Gambling Minister Baroness Twycross characterized the levy as a “huge step forward” for the industry, underscoring hopes that it will significantly mitigate the prevalence of problem gambling.
On April 7, the Gambling Commission provided an update detailing the specific rates that various license holders will be expected to pay, revealing that online gambling entities will face the highest levy percentages.
Overview of Statutory Levy Rates
The rates established for the statutory levy are as follows:
| Online Gambling Licence Type | Levy Rate (%) | Land-Based Gambling Licence Type | Levy Rate (%) |
|---|---|---|---|
| Remote Bingo | 1.1% | Non-Remote 1968 Act Casino | 0.5% |
| Remote Bingo Game Host | 1.1% | Non-Remote 2005 Act Casino | 0.5% |
| Remote Casino | 1.1% | Non-Remote General Betting Standard | 0.5% |
| Remote Casino Game Host | 1.1% | Non-Remote Betting Intermediary | 0.5% |
| Remote General Betting (Real Events) | 1.1% | Non-Remote Bingo | 0.2% |
| Remote General Betting (Virtual Events) | 1.1% | Adult Gaming Centre | 0.2% |
| Remote Betting Host (Real Events) | 1.1% | Non-Remote General Betting Limited | 0.2% |
| Remote Betting Host (Virtual Events) | 1.1% | Family Entertainment Centre | 0.1% |
| Remote General Betting Limited | 1.1% | Non-Remote Pool Betting | 0.1% |
| Remote Betting Intermediary | 1.1% | Various Non-Remote Machine Technical Licences | 0.1% |
| Non-Remote Gambling Software | 1.1% | 0.1% | |
| Additional Licences | 0.1% |
Moreover, certain types of non-remote society lotteries and external lottery managers will also incur a rate of 0.1%.
Understanding the Calculation Methodology
The method of calculating the levy has been elaborated by the Gambling Commission. Rates are determined based on the gross gambling yield (GGY), deducting funds allocated to good causes and prizes, alongside the gross sales value related to licensed activities. The final amount owed by each licensee will rely on accurate data submitted through Regulatory Returns, emphasizing the critical need for transparency.
Future Steps and Implications
As detailed by law firm Harris Hagan, licensees are instructed not to remit their levy payments until invoices are issued, beginning on September 1. Payments are expected to be finalized by October 1, with annual invoicing set to occur each September for the fiscal year commencing in April. Failure to comply with these payments can lead to the revocation of licenses.
Addressing Concerns Surrounding the Levy
In light of the levy’s introduction, a panel of researchers specializing in gambling-related harm has expressed reservations regarding the potential influence of the gambling industry over future research funded by these revenues. Many scholars have historically been hesitant to accept funding from the industry due to ethical concerns, which could lead to biases in research outcomes.
Sam Chamberlain, a psychiatry professor at the University of Southampton, articulated these concerns to a parliamentary health committee, emphasizing the lack of quality research in recent decades. He noted that ethical dilemmas have deterred reputable researchers from engaging with industry funding, which ultimately affects the quality of knowledge generated about gambling harms.
Through the implementation of this levy and the discussion surrounding it, the UK government aims to frame a more accountable gambling landscape while attempting to foster a stronger base of independent research that could inform effective strategies for harm reduction.