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British gambling levy rates confirmed for each vertical

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Regulation

2Days ago

The Gambling Commission has detailed the full breakdown of rates, with online gambling to pay the most.

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The Gambling Commission has detailed the full breakdown of rates, with online gambling to pay the most.

UK.- The Gambling Commission has provided a fuller breakdown of the new British gambling levy rates. All licensed gambling operators must pay the new levy, which came into effect as of April 6 as part of reforms announced in the 2023 Gambling White Paper.

The rate that licensees must pay will range from 0.1 per cent of gross gambling revenue (GGR) for remote and non-remote pool betting operations, gambling machine operations and family entertainment centres to 1.1 per cent for online gambling and betting, bingo and software licensees.

Land-based casino and retail betting licensees will pay a rate in the middle of that at 0.5 per cent of GGR. Both remote and non-remote society lottery operating licence holders and external lottery manager operating licence holders will pay a 0.1 per cent rate.

The Gambling Commission said the amount that operators must pay would be calculated based on gross gambling yield (GGY) and proceeds retained after payment of good causes and prizes, as well as the gross value of sales or any other amounts relating to authorised gambling activities, according to the data provided in licensees’ regulatory returns. Companies have a duty to provide accurate data.

The levy will be invoiced on an annual basis every year on September 1, starting this year. Payment will have to be made by October 1. Failure to pay can lead to licence revocation.

The mandatory levy replaces the previous system of voluntary donations that operators made to GambleAware, which has served as the distributor of funds to various bodies. The government hopes the levy will raise £100m a year for gambling harm research, treatment and prevention. Funds for treatment will be administered by the NHS.


Further British gambling reforms

The Gambling Commission has also announced new rules for gambling incentives and promotions. From December 19, licensed gambling operators will no longer be allowed to offer bonuses or other incentives that combine different types of gambling products. There will also be a cap on bonus requirements.

The ban on so-called ‘bonus mixing’ means that operators will no longer be able to offer promotions that combine casino, bingo, sports or lottery products. For example, promotions that require a customer to place both a sports bet and play a slot game to qualify for a bonus will be prohibited. 

Meanwhile, a new cap on bonus requirements will limit online bonus wagering requirements to 10 times the bonus amount. For example, a £10 bonus offer cannot require a customer to place more than £100 in bets before any winnings can be withdrawn. 


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