The Gambling Levy Regulations 2025
The Gambling Levy Regulations 2025 mandate that gambling operators pay an annual levy to the Gambling Commission, beginning April 6, 2025.
The levy amount is calculated based on the operator's revenue, with different percentages applied to different licenses.
The regulation aims to fund research and treatment of gambling-related harm, and addresses the collection of this levy through defined levy periods and methods of calculation.
Non-payment, unless excused by administrative error, results in license revocation.
Arguments For
Increased funding for gambling research and treatment: The levy provides a dedicated funding source for initiatives aimed at reducing gambling-related harm. This is supported by the increasing public health concern regarding gambling addiction and the need for robust support systems. Implementation is through the Gambling Commission's allocation of funds. The legal basis is Section 123 of the Gambling Act 2005.
Fairer contribution from gambling operators: The levy ensures all operators contribute in proportion to their revenue, promoting a level playing field and responsible gambling practices. Evidence suggests a tiered levy system based on revenue is more equitable among operators providing different types of gambling services. This is implemented via the calculation methods detailed in the regulations, aligning with the Act's aim for balanced regulation.
Improved regulation and oversight of the gambling sector: The levy's revenue is used to enhance the Gambling Commission's capability in overseeing the gambling industry more effectively. Improved oversight is necessary given societal changes in gambling behaviours and the introduction of new technologies. The legal basis is provided by the Gambling Act 2005.
Arguments Against
Potential administrative burden on operators: The levy may introduce additional administrative tasks and expenses, especially for smaller operators. Implementation challenges could include accurate data collection and reporting requirements. A smaller operator could experience disproportionately high costs, especially in the initial transition period.
Unintended consequences for responsible operators: While intended to fund research and treatment, there is a possibility of responsible operators being negatively impacted due to the additional financial burden, potentially affecting their business sustainability. This impact needs further evaluation, though a tiered system aims to mitigate it.
Alternative funding mechanisms could exist: While this levy offers one solution, alternative funding sources for research and treatment might offer other benefits. Further exploration of alternative mechanisms could be undertaken to ensure the most efficient and effective funding strategy.
- Citation, commencement and extent (a) These Regulations may be cited as the Gambling Levy Regulations 2025; (b) come into force on 6th April 2025; (c) extend to England and Wales and Scotland.
This section details the title, effective date, and geographical scope of the regulations.
The regulations are titled "Gambling Levy Regulations 2025", effective from April 6, 2025, and apply across England, Wales, and Scotland.
- Interpretation (1) In these Regulations— “first levy period” means— (a) in relation to a holder of a lottery operating (society) licence, the period of 12 months beginning with 1st April 2024; (b) in relation to a holder of any other kind of operating licence, the period of 9 months beginning with 1st July 2024; “leviable amount” has the meaning given in paragraphs (3) to (5); “levy period” means— (a) the first levy period; (b) the period of 12 months beginning with 1st April 2025 and each subsequent period of 12 months beginning with 1st April; “non-remote general betting (on-track or on-course) operating licence” means a non-remote general betting operating licence under the authority of which the licensee provides— (a) from a dog track, facilities for betting on the outcome of greyhound races; (b) from a horse-race course, facilities for betting on the outcome of horse races. (2) In these Regulations, the following terms have the meanings given by regulation 2(1) of the Gambling (Operating Licence and Single-Machine Permit Fees) Regulations 2017— “betting intermediary (trading room only) operating licence”; “lottery operating (external lottery manager) licence”; “lottery operating (society) licence”. (3) In relation to a holder of an operating licence which is not a lottery operating licence, the “leviable amount” in respect of a levy period is— (a) the aggregate of— (i) amounts paid during the levy period to the holder of the operating licence by way of stakes in connection with the activities authorised by the operating licence, and (ii) amounts (exclusive of value added tax) that otherwise accrue during the levy period to the holder of the operating licence directly in connection with activities authorised by the licence, minus (b) the aggregate of amounts deducted during the levy period by the holder of the operating licence for the provision of prizes or winnings in connection with the activities authorised by the licence. (4) In relation to a holder of a lottery operating (external lottery manager) licence, the “leviable amount” in respect of a levy period is— (a) the aggregate of amounts paid to, or otherwise obtained by, the holder of the operating licence during the levy period by way of fees in connection with the lotteries promoted in reliance on the operating licence, minus (b) the aggregate of amounts deducted during the levy period from the amounts described in sub-paragraph (a) by the holder of the operating licence for the provision of prizes in connection with the lotteries promoted in reliance on the operating licence. (5) In relation to a holder of a lottery operating (society) licence, the “leviable amount” in respect of a levy period is— (a) the aggregate of the proceeds of lotteries promoted in reliance on the operating licence which accrue during the levy period, minus (b) the aggregate of amounts deducted during the levy period from the proceeds described in sub-paragraph (a) by the holder of the operating licence for— (i) the provision of prizes in connection with the lotteries promoted in reliance on the operating licence, and (ii) a purpose described in section 99(2) of the Gambling Act 2005. (6) For the purposes of these Regulations, an operating licence which is a licence of more than one of the kinds described in regulation 4(2) to (5) is to be treated as if each of its kinds were a separate operating licence of that kind.
This section defines key terms used throughout the regulations.
It specifies the timeframe of the initial levy period for different license types.
It defines "leviable amount"— the basis for calculating the levy—differently for various license types, focusing on revenue generated less prize payouts.
This section also clarifies how multiple license holders are treated.
- Requirement to pay a levy (1) Starting with the first levy period, a person who is a holder of an operating licence during a levy period must pay a levy to the Commission in respect of that levy period. (2) Paragraph (1) does not require any person to pay a levy in respect of a levy period where the amount of that levy (as determined in accordance with regulation 4) is £10 or less.
This section establishes the obligation for operating license holders to pay a levy to the Gambling Commission for each levy period.
It includes an exception; no levy is due if the calculated amount is £10 or less.
- The amount of the levy (1) Paragraphs (2) to (5) set out how to determine the amount of the levy— (a) in relation to a holder of a lottery operating (society) licence, in respect of each levy period; (b) in relation to a holder of any other kind of operating licence, in respect of each levy period other than the first levy period. (2) For holders of the following operating licences, the amount of the levy is 1.1% of the leviable amount— (a) a gambling software operating licence; (b) a remote betting intermediary operating licence which is not a betting intermediary (trading room only) operating licence; (c) a remote bingo operating licence; (d) a remote casino operating licence; (e) a remote general betting operating licence. (3) For holders of the following operating licences, the amount of the levy is 0.5% of the leviable amount— (a) a betting intermediary (trading room only) operating licence; (b) a non-remote betting intermediary operating licence; (c) a non-remote casino operating licence; (d) a non-remote general betting operating licence which is not a non-remote general betting (on-track or on-course) operating licence. (4) For holders of the following operating licences, the amount of the levy is 0.2% of the leviable amount— (a) a gaming machine general operating licence for an adult gaming centre; (b) a non-remote bingo operating licence; (c) a non-remote general betting (on-track or on-course) operating licence. (5) For holders of the following operating licences, the amount of the levy is 0.1% of the leviable amount— (a) a gaming machine general operating licence for a family entertainment centre; (b) a gaming machine technical operating licence; (c) a lottery operating licence; (d) a pool betting operating licence. (6) For holders of an operating licence which is not a lottery operating (society) licence, the amount of the levy in respect of the first levy period is A × 1⅓, where A is the amount of the levy that would be determined in respect of that period in accordance with whichever of paragraphs (2) to (5) apply to determine the amount of the levy for the kind of operating licence in subsequent levy periods.
This section details the levy calculation method.
Different levy percentages (ranging from 0.1% to 1.1%) are applied to different types of operating licenses, based on the "leviable amount".
The first levy period uses a different calculation, multiplying the standard amount by 1⅓ for non-lottery (society) licenses.
- Timing of payment of the levy The levy in respect of a levy period must be paid before the 1st October following the end of that levy period.
This section establishes the payment deadline for the levy.
The levy for a specific levy period must be paid by October 1st following the end of that period.