Key Moments:
- The UK Gambling Commission will send out the first invoices for the statutory gambling levy via the eServices portal on 1 September 2025, with payment due by 1 October 2025.
- The levy, which replaced the previous voluntary system in April 2025, requires remote operators to pay 1.1 percent of relevant revenue, land-based casinos and betting shops 0.5 percent, and society lotteries 0.1 percent.
- The government anticipates generating approximately £100 million per year from the levy, doubling the £50 million raised through voluntary contributions in 2023/24.
Implementation and Payment Process
The UK Gambling Commission is set to issue the inaugural invoices for the mandatory gambling levy through its eServices portal on 1 September 2025. Licensed operators must complete their payments using GovPay or bank transfer by 1 October 2025. Meeting this deadline is required for maintaining a valid license, as failure to pay or late payments, except in the case of administrative error, can result in license revocation as per section 119 of the Gambling Act 2005. Each operator must reference the full invoice number when making payments, which are not to be combined with other Commission fees or split into installments.
The UK Gambling Commission has warned operators that failure to pay the new statutory levy by 1 October could result in licence revocation https://t.co/3Kh9SW2Ifj https://t.co/3Kh9SW2Ifj
— iGB (@iGamingBusiness) August 27, 2025
Levy Calculation and Sector Breakdown
The statutory levy represents a key outcome of the Gambling Act Review and replaces the earlier voluntary Research, Education and Treatment (RET) contribution system, taking effect from April 2025 under the Gambling Levy Regulations. Levy rates are determined by sector: remote operators will pay 1.1 percent of relevant revenue, land-based casinos and betting shops 0.5 percent, and society lotteries 0.1 percent. No obligations apply below the ten-pound threshold.
| Sector | Levy Rate |
|---|---|
| Remote Operators | 1.1% |
| Land-based Casinos & Betting Shops | 0.5% |
| Society Lotteries | 0.1% |
The initial levy period for most licensees covers July 2024 to March 2025, with payments annualized by multiplying the nine-month data by one and one-third. For society lotteries, the levy year spans from 1 April 2024 to March 2025. Calculation methods differ between license types; non-lottery operators include stakes and other income minus prizes, while society lotteries base their calculation on proceeds after deducting prizes and distributions to good causes. Notably, licensees with remote equipment located in Great Britain or a software operating license must include global income, not just UK revenue.
Compliance and Enforcement Measures
Invoices must be paid in full via GovPay or bank transfer by quoting the invoice number precisely. The Commission prohibits combining payments with other fees or paying by installments. Payment is a licensing requirement and failure to comply, barring administrative errors, may trigger suspension or even revocation of a license.
If invoices include foreign income not subject to the levy, operators are required to inform the Commission before 1 October. In cases where an invoice is disputed, enforcement actions are paused as long as detailed explanations are provided. Conversely, the expectation is for operators to self-report any underpayments and settle the balance in full.
Distribution of Levy Funds
The government envisions the levy contributing roughly £100 million annually, a significant increase over the £50 million previously collected annually through voluntary payments. These funds will be allocated among the Department of Health and Social Care (DHSC), the Office for Health Improvement and Disparities (OHID), and UK Research and Innovation (UKRI) as follows:
| Recipient | Annual Allocation (£ millions) | Purpose |
|---|---|---|
| DHSC | 50 | Treatment |
| OHID | 30 | Prevention and Education |
| UKRI | 20 | Research |
Charities have been moved away from the funding center, shifting oversight and funding allocation to government agencies a move justified by ministers as necessary for oversight and independence but criticized by some for potentially overlooking local expertise. This marks a broader structural change in how gambling harm data is managed in the UK.
Industry Outlook and Concerns
Operators are required to ensure precision in regulatory reporting, maintain fully operational eServices, and prepare finance teams to comply on time. The Betting and Gaming Council has flagged growing regulatory and administrative costs, noting that the new levy compounds pressures from other recent reforms, including affordability checks and stricter marketing regulations. The financial impact is expected to be felt most acutely by online firms, who must now factor the 1.1 percent rate into their business models.
Companies based overseas but hosting technology in Great Britain are also affected, with global revenue included in the levy calculation. Any non-GB turnover must be disclosed and may be challenged if out of scope. The UK Gambling Commission continues to update its penalty framework, tying penalties to Gross Gambling Yield and potentially imposing fines exceeding 15 percent for major breaches. Concerns also persist among charities about possible delays in service delivery and loss of independent research oversight under government leadership. Proponents, however, claim that the statutory framework offers consistent and reliable funding, addressing shortcomings of past voluntary contributions.
Compliance Timeline and Next Steps
With the new statutory gambling levy now in force, operators are facing a critical test of their compliance capabilities. The coming months will reveal whether these measures effectively address gambling harm or merely increase regulatory complexity. Operators are advised to verify their data and systems to avoid future disputes. Additional information can be found on the UKGC statutory gambling levy page accessible from the Commission’s official website.