Insights Consultation on the statutory levy for gambling operators


One of the proposals in the White Paper was the introduction of a statutory levy on gambling operators. The consultation for this was expected in Summer 2023 and the government has, today, published its consultation on its proposals on the key aspects of the levy’s design, including its structure, distribution and governance.

The statutory levy will be applied to all classes of licence holder under the Gambling Act 2005, including remote, non-remote and ancillary, which are licensed to deliver the following activities:

  • Arcades: Family Entertainment Centres (FECs) and Adult Gaming Centres (AGCs)
  • Bingo: remote and non-remote
  • Betting: remote and non-remote
  • Betting: non-remote general betting limited operating licence (on-course bookmakers)
  • Pool betting licence: remote and non-remote
  • Casino: remote and non-remote
  • Society lotteries (remote and non-remote, including local authority lotteries licensed by the Gambling Commission) and External Lottery Managers
  • Gambling software and gaming machine technical licences

The levy is intended to come into effect in 2024 with the largest four remote gambling operators contributing the highest percentage of GGY (1%), to begin with. By 2027, all remote gambling operators with an annual gross gambling yield (GGY) or gross profit over £500,000 will pay a levy amounting to 1% of GGY, falling to 0.4% for land-based casino gaming and betting operators and 0.1%cent for land-based arcades, bingo and society lotteries.

This is expected to raise approximately £90 million to £100 million per year by 2027.

The Government is consulting on how this money will be distributed; however, it is expected that between 10 – 20% of this amount will be directed towards research; 15 – 30% to create a co-ordinated GB-wide approach to prevention, including regulatory restrictions on products, place and provider, as well as more specific protections for at-risk individuals, including education and awareness-raising activities among particular at-risk groups; and 40 – 60% to Gambling Commission treatment and support services in England, Scotland and Wales.

The distribution of levy funds will require DCMS and HM Treasury approval, supported by a central government Levy Board, including representatives from the Department of Health and Social Care and the Department for Science, Innovation and Technology.

The consultation will be open for 8 weeks, closing at 11:55pm on 14 December 2023.

A link to the consultation can be found here.

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