The UK Gambling Commission has released a detailed breakdown of the newly introduced gambling levy rates, highlighting that online operators will bear the highest financial burden.

Effective from April 6, the mandatory levy applies to all licensed gambling operators and forms part of the wider regulatory reforms outlined in the 2023 Gambling White Paper.

Under the new structure, levy rates vary depending on the sector. Remote and non-remote pool betting, gambling machine businesses, and family entertainment centres will be taxed at 0.1% of their gross gambling revenue (GGR). In contrast, online gambling and betting operators, as well as bingo and software licensees, will face a significantly higher rate of 1.1%. Land-based casinos and retail betting operators are set to pay a mid-range levy of 0.5%.

Additionally, society lottery licensees and external lottery managers, whether operating remotely or otherwise, will be taxed at 0.1%.

The Gambling Commission clarified that the levy will be calculated based on figures reported in licensees' regulatory returns, including GGR, net proceeds after charitable contributions and prize payouts, and total sales linked to authorised gambling activities. Operators are legally required to submit accurate data.

Invoices for the levy will be issued annually on September 1, with payments due by October 1. Failure to meet the deadline could result in licence revocation.

This mandatory levy replaces the previous voluntary donation system managed by GambleAware. The UK government aims to raise £100 million annually through the new levy to fund gambling harm research, treatment, and prevention initiatives. The National Health Service (NHS) will oversee the allocation of treatment-related funding.

New Rules on Promotions and Incentives

In addition to the levy, the Gambling Commission has announced new restrictions on gambling promotions, effective from December 19. Operators will no longer be allowed to offer bonuses that combine multiple gambling products, such as casino games and sports betting in a single promotion.

The practice known as "bonus mixing" will be prohibited to ensure clearer and more responsible marketing. For instance, promotions that require customers to bet on a sporting event and play a slot game to unlock a reward will no longer be permitted.

Moreover, new limits will be imposed on wagering requirements for online bonuses. The maximum allowed will be 10 times the value of the bonus — meaning that a £10 bonus cannot demand more than £100 in bets before withdrawal of any winnings is allowed.