Key Moments
- The statutory gambling levy deadline falls today, with authorities warning that late payments may result in license revocation.
- The new levy replaces the previous voluntary system, obliging all licensees to contribute based on gross gambling yield at rates between 0.1 percent and 1.1 percent.
- Operational mistakes, incorrect regulatory returns, and outdated eServices details remain high-risk areas as operators navigate the new levy requirements.
Statutory Levy Marks Shift from Voluntary Contributions
UK-licensed gambling operators now face a major regulatory milestone as the statutory levy has replaced voluntary contributions. The Gambling Commission has issued final reminders via its eServices platform, making it clear that timely payment is essential to maintain licensure. This new framework sets precise rates: 0.1 percent for lotteries and gaming machines and 1.1 percent for remote casinos and betting. Calculation is straightforward – operators determine their total gross gambling yield and apply each license’s relevant rate individually before combining the amounts for a final total.
For instance, a remote casino with a gross gambling yield of £2 million owes £22,000 at the 1.1 percent rate. If the same operator also reports £500,000 in lottery revenue, the extra 0.1 percent rate adds £500, totaling £22,500.
| License Type | GGY | Levy Rate | Levy Amount |
|---|---|---|---|
| Remote Casino | £2,000,000 | 1.1% | £22,000 |
| Lotteries | £500,000 | 0.1% | £500 |
| Total Levy | £22,500 | ||
First Levy Period Brings New Calculation Methods and Compliance Risks
Elizabeth Varley, solicitor at Poppleston Allen, told SiGMA News that confusion often arises over how the first levy is calculated.
“The first levy period differs from future levy periods. For all licensees except society lotteries, it is based on regulatory returns from 1 July 2024 to 31 March 2025, multiplied by one and one-third (GGY × 1.3333). For lotteries, it runs from 1 April 2024 to 31 March 2025,” Varley said.
For most licensees, the levy is assessed on Great Britain customer revenue, while software licensees or those with key remote equipment based in Great Britain are subject to a broader scope, including global income. Separate invoices for GB and non-GB activity have been issued for the inaugural period, with room for operators to dispute any amounts they believe include non-leviable income.
According to Varley, updating contact details on eServices is crucial to avoid missing reminders, as staff turnover or company growth often leads to outdated information – a common pitfall that could result in missed deadlines.
Operators are now subject to mandatory payment as a license condition, with enforcement ranging from suspension to complete revocation for missed or delayed payments.
Payment Disputes and Deadlines Place Spotlight on Compliance
Invoices have been dispatched on 1 September, and operators must pay in full before 1 October 2025. For those disputing their assessed levy, Varley recommends paying the amount they believe appropriate and contacting the Commission immediately for review, as enforcement action will be paused during the dispute process. However, the Commission has not made public any targeted resolution timelines for such issues.
Varley’s advice is direct:
“Pay on time. Full payment is required before 1 October 2025, so make sure you have paid by midnight on 30 September.”
Failure to meet this requirement carries steep consequences, extending beyond financial penalties into the realm of lost revenue and operational interruptions. For instance, an operator with daily revenue of £50,000 could lose up to £350,000 during a one-week license suspension.
Levy Presents Added Pressure for Smaller and Mid-Sized Operators
The transition from the previous donation-based Research, Education and Treatment (RET) contributions to mandatory levies has significantly increased the burden for many smaller licensees. Under the old model, operators determined their own contribution amounts, whereas the levy is now dictated strictly by reported regulatory returns and fixed rates.
According to Varley, the invoices have a wide-ranging impact:
“From under a hundred to hundreds of thousands. It depends on the gross gambling yield recorded in regulatory returns.”
For some, compliance is merely an administrative step; for others, it now represents a substantial new cost structure and financial exposure.
Industry Scrutinizes Fairness as Online Operators Face Steeper Rates
Discussion of the levy’s fairness has intensified, as remote betting and casino operators deal with the highest 1.1 percent rate, compared to lotteries at only 0.1 percent. Varley highlighted that online operators in particular will bear the brunt amid narrowing margins and climbing compliance expenses.
For some observers, the levy marks another stage in the UK’s shift from guidance to statutory control, with data on gambling harm, such as UKGC and GambleAware’s recent findings, shaping the debate on where funds should be directed.
Looking Ahead: Potential Changes and Strategic Imperatives for Operators
Operators are reminded that levy rates may change annually without advance notice. The Gambling Commission issues invoices every September and sets rates year by year. The industry is watching to see how future reforms, possibly aligned with the Gambling White Paper, will shape the levy in 2026 and beyond.
The current statutory levy deadline is more than paperwork; it demonstrates the government’s move toward mandated funding and stricter oversight, and it challenges operators to establish robust compliance cultures.
Preparatory Actions for the Year Ahead
- Review and update compliance procedures regularly to meet new regulations and maintain operational continuity.
- Monitor Commission updates closely to stay informed about changes affecting levy calculations and timelines.
- Invest in ongoing staff training to ensure teams are well equipped for evolving regulatory environments.
- Author
Daniel Williams
