The UK Gambling Commission (UKGC) has outlined its framework for the statutory levy, a key outcome of the Gambling Act Review, as operators prepare for the first payment cycle due from 1 September 2025. Rates are set between 0.1% and 1.1% of relevant revenue, based on the nature of the gambling activity.
Introduced through the Gambling Levy Regulations 2025, the levy replaces the former voluntary funding system under the Licence Conditions and Codes of Practice (LCCP). Under this new model, the Gambling Commission will collect and administer levy funds, while the Department for Culture, Media and Sport (DCMS) will provide strategic oversight and set sector-specific rates.
Funds will be allocated for research, education, and treatment (RET) to combat gambling-related harm. NHS England will oversee treatment projects, the Office for Health Improvement and Disparities (OHID) will handle prevention and education, and UK Research and Innovation (UKRI) will direct research efforts.
How the Levy Is Calculated
The levy amount is determined by the type of licensee and specific revenue streams. For non-lottery B2C operators, the calculation is based on:
Levy Amount = Stakes + Other Income – Prizes Paid Out
“Other income” covers items such as tournament entry fees, poker rake, and monetization features. Lottery operators calculate the levy on net income from ticket sales after prize payouts, while society lotteries base it on net income from charity-linked lottery activities.
Operators earning £10 or less in levy obligations for a period will not be required to make payments.
For the initial payment cycle, data from July 2024 through March 2025 will be multiplied by one and one-third to establish the amount due. Lottery licensees, whose first levy period started 1 April 2024, will base calculations on data reported for April 2024 through March 2025.
Payment Deadlines and Compliance
Invoices will be available via the UKGC’s eServices portal starting 1 September 2025, with payment in full required by 1 October 2025. Partial payments are not permitted, and transactions must be made either through GovPay or a bank transfer to the account listed on the invoice.
The Commission has emphasized the importance of accuracy when processing payments, including using the full invoice number and ensuring correct amounts. Errors could result in rejected payments and the risk of licence revocation.
For the first year, operators will receive one invoice for Great Britain-based activity, and, if applicable, a second invoice for non-GB revenues. Operators must notify the Commission immediately if non-GB invoices contain inaccuracies, particularly regarding non-leviable income from foreign operations. Failure to report discrepancies or omissions could lead to enforcement actions under section 119 of the Gambling Act 2005.
Preparing for the First Levy Cycle
With the payment deadline nearing, operators are urged to take several preparatory steps:
- Verify that all regulatory returns are accurate and submitted on time.
- Ensure up-to-date contact information is provided to the UKGC.
- Confirm access to the eServices system.
The UKGC has also indicated that further guidance will be released in the coming months to assist licensees in adapting to the statutory levy, which represents one of the most significant regulatory updates since the Gambling Act 2005 came into effect.
Source:
Statutory Gambling Levy, gamblingcommission.gov.uk, August 22, 2025.