The Gambling Commission has published new guidance on the statutory levy for gambling operators which was introduced earlier this year to fund the research, prevention and treatment of gambling related harms. Here we consider the guidance and what licensed operators need to be aware of as we approach the due date for the first statutory levy payment. 

Background

In Autumn 2023, the Department for Culture, Media and Sport (DCMS) consulted on the introduction of a statutory levy which would apply to gambling activity licensed in Great Britain and would replace the (then-current) voluntary contribution system administered under the Licence Conditions and Codes of Practice (LCCP). 

As previously reported,the DCMS response to the consultation which was published in November 2024 confirmed various matters relating to statutory levy, including the rates and the timeline for implementation. 

The statutory levy was introduced via The Gambling Levy Regulations 2025 (Regulations) which came into force on 6 April 2025. Paragraph 2 of Social Responsibility Code 3.1.1 in the LCCP was also amended to remove the obligations requiring that licensees make voluntary contributions for the prevention and treatment of gambling-related harm. The new guidance reiterates that voluntary contributions do not count towards the statutory levy and any statutory levy invoice must be paid in full regardless of any voluntary contributions that may have been paid. 

Rates

The new guidance confirms the rates of the levy which were set out in the Regulations. In summary, the rates vary by operator type and range between 0.1% and 1.1% of leviable amounts, with online operators generally being subject to higher levy rates. A licensee will not be required to pay the statutory levy if their total billable amount is £10 or less. Full details of the rates are available here.

Calculating Payments

For licensees other than those holding lottery operating licences, the levy will be applied to leviable amounts which are calculated as follows:

• stakes received by the licensee in connection with the activities authorised by the operating licence PLUS
• amounts (exclusive of value added tax) that otherwise accrue to the licensee directly in connection with activities authorised by the licence MINUS
• deductions for the provision of prizes or winnings in connection with the activities authorised by the licence.

Only gambling facilities provided to customers in Great Britain are included in the calculations unless the licensee:

• holds a software operating licence; or 
• holds a licence by virtue of its remote gambling equipment being located in Great Britain.

In these circumstances, the Commission’s guidance states that the levy calculation is based on all income deriving from the licensed activities, regardless of whether such activities take place domestically or abroad. 

The Commission’s guidance doesn’t provide any further information on what constitutes revenue ‘deriving from the licensed activities’. However, in respect of software licensees, it is our view that this is likely to mean that:

• if the software licensee is based in Great Britain, all global revenues will potentially be subject to the levy; but 
• if the software licensee is based outside of Great Britain, the levy will be based on: (i) in respect of B2C customers based outside Great Britain, all B2B income derived from end users in GB; and (ii) in respect of B2C customers based in Great Britain, all B2B income derived from services provided using the B2C customer’s remote gambling equipment located in Great Britain. 

Society lottery operating licences and external lottery manager operating licences are subject to separate calculations, which can be found in the new guidance under ‘How the statutory levy is calculated’.

The leviable amounts are calculated based on regulatory returns provided by licensees

As some licensees will have submitted returns which include non-leviable foreign income (or returns which don’t fully account for leviable income earned from foreign customers), in the first year of the statutory levy each licensee will receive one combined invoice for all domestic activity and a second invoice for non-domestic activity. Licensees falling into this category must:

• pay the invoice for domestic activity before 1 October 2025; 
• notify the Commission before 1 October 2025 of any reasons why sums are not due in relation to income earned from foreign customers if it believes that non-leviable amounts are included in the non-domestic invoice; and
• notify the Commission of any shortfalls in leviable amounts if it believes that the invoice doesn’t include any amounts which are leviable. 

It is the responsibility of the licensee to take these steps and failure may result in enforcement action or licence revocation. 

First Payment

The first statutory levy period is:

• 1 April 2024 – 31 March 2025 for society lottery operating licences; and
• 1 July 2024 – 31 March 2025 for all other licences.

The invoice for the first statutory levy payment covering these periods was to be issued on 1 September 2025 and must be paid before 1 October 2025. Note that GGY will be multiplied by one and one-third for the period 1 July 2024 to 31 March 2025, to account for this being a nine-month period. 

Future Payments

Going forward, the statutory levy will be invoiced annually on 1 September each year based on activity in the previous financial year. For example, the levy payable for 2026/27 will be invoiced on 1 September 2026 and would be based on activity between April 2025 and March 2026.

Making Payment

Payment of the statutory levy is a licence requirement, meaning non-payment or late payment could result in licence revocation unless the Gambling Commission is satisfied that this is due to administrative error. To ensure that this does not occur, licensees must:

• pay the statutory levy before 1 October each year;
• pay the amount of the invoice in full (not in instalments);
• not pay the levy until it receives its invoice on eServices;
• not combine the payment with other payments to the Gambling Commission; and
• make payment to the correct account (or via GovPay), quoting the invoice number in full.

Next Steps

At this stage, licensees should have received their invoice for the first statutory levy payment. If any licensee has not yet received an invoice, they should contact the Gambling Commission immediately. 

Given payment must be made before 1 October 2025, the timeline for settling the invoice is relatively short. As operators will be responsible for raising any queries regarding invoices, operators should begin the process of reviewing the invoice to raise discrepancies as soon as possible to resolve any issues in advance of the payment deadline. This is particularly relevant for those operating domestically and internationally, who will need to ensure both GB and non-GB invoices are accurate. 

Whilst the Gambling Commission may offer operators an opportunity to remedy early mistakes and omissions in these early stages, given the potential consequences that non-compliance may pose (including licence revocation) it is important that licensees act quickly to ensure that they have received an accurate invoice and that payment is made in full before 1 October 2025.