The Statutory Gambling Levy: Key Insights from the Gambling Commission’s Guidance

Following a 2023 consultation and its response, the UK government has introduced a statutory levy on  operators licensed by the Gambling Commission through the Gambling Levy Regulations 2025, This came into effect on 6th April 2025. The statutory levy is calculated using data submitted by licensees through Regulatory Returns, and they are legally required to provide accurate and timely information. Inaccurate submissions can lead to incorrect levy amounts and non-compliance with the Gambling Act 2005.

The levy, replacing the previous voluntary RET contributions, will be collected by the Gambling Commission under DCMS direction. Funding acquired through this scheme will be allocated to research, prevention, and treatment of gambling-related harm, as required under the Gambling Act 2005. DCMS will set levy rates, direct funding strategy, and ensure accountability, while the Commission will collect payments, enforce compliance, publish annual receipts, and handle appeals.

How the levy is calculated

The Gambling Levy Regulations 2025 set levy rates between 0.1% and 1.1%, varying by licence type. No payment is due if a licensee’s total levy for a period is £10 or less. Full information regarding the statutory levy rate is available in the government’s response to the statutory levy consultation.

The levy is calculated differently across activities as seen below:

For licences other than lottery operating licences: stakes and gambling-related income, minus prizes/winnings.

Society lotteries: proceeds of lotteries, minus prizes and statutory good-cause deductions.

External lottery managers: fees received for managing lotteries, minus prizes.

For the full breakdown of how the levy is calculated in the Gambling Commissions words please follow this link.

For most operators, the levy applies only to gambling services offered to GB customers. However, licence holders with key remote equipment or software licences in Great Britain must calculate the levy on all income from those activities, regardless of where it is generated.

There may be challenges for certain operators where GGY isn’t necessary reflective of their actual profit. White label providers for example, will have a much lower net profit compared to GGY due to much higher acquisition costs, but time will tell whether this becomes a major issue.

Understanding Levy Timing and Calculations

The first statutory levy period under the Gambling Levy Regulations 2025 started on the 1st April 2024 for society lottery licences and 1st July 2024 for other operators. For most licences, the levy is calculated using Regulatory Returns from July 2024 to March 2025 multiplied by one and one third to account for the levy period been shorter than 12 months in the first year, while society lotteries use data from 1 April 2024 to 31 March 2025.

The levy is invoiced annually on 1 September based on the previous financial year’s activity, with payments due before 1 October. For example, the 1 September 2026 invoice reflects activity from April 2025 to March 2026. Initial calculations do not duplicate voluntary contributions from 2024–2025, and subsequent levies will always be based on the prior year’s activity.

Statutory levy invoices for 2025–26 will be available via eServices on 1 September 2025, with full payment due by 1 October 2025. Paying the statutory levy is a licence requirement. Failure to pay on time may lead to licence revocation unless the Gambling Commission accepts it was due to an administrative error. Operators should only make payment once their official invoice is available in eServices.

The Gambling Commission acknowledges that some operators’ returns may include non-leviable foreign income, while others may not fully report leviable income from foreign customers. The Commission will invoice operators separately for GB and non-GB leviable activity, and it is the operator’s responsibility to pay the full levy for GB customers by 1 October 2025.

Please note that for any non-GB invoices that an operator believes include non-leviable foreign income, it is the operator’s responsibility to notify the Commission promptly, and no later than 1 October 2025, providing full reasons for any disputed amounts, so enforcement can be suspended until the query is resolved. Conversely, if the Commission’s invoices omit any sums that should be included, the operator must notify the Commission of the shortfall and pay the full amount due; failure to do so may result in enforcement action, including licence revocation under section 119 of the Gambling Act 2005.

What operators need to do to be prepared.

We encourage operators to take proactive steps now by ensuring their Regulatory Returns data is accurate and timely, their organisation has access to eServices with up-to-date contact details, and that teams are familiar with the new levy requirements. Putting these processes in place early will help ensure a smooth submission and payment when invoices are issued in September 2025.

Luke ARC are leading experts in navigating all areas of the UK Gambling Commission’s regulations and processes, and we’re here to provide support tailored to your needs.

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