The UKGC has updated its License Conditions and Codes of Practice (LCCP) to help implement the upcoming gambling levy. The changes follow a series of expert consultations and are consistent with the 2023 White Paper regarding high-stakes gambling. While the levy will only affect operators, new regulations regarding deposit limits will also take effect later in the year.

Overview of the Gambling Statutory Levy

Ever since the 2005 Gambling Act was established, the UK has prioritized an innovative and responsible approach to player safety and operators’ roles. With the introduction of the new statutory levy, the government once again affirms its dedication to strengthening protections for those at risk.

The upcoming changes were outlined in the policy paper “High Stakes: Gambling Reform for the Digital Age”, which was presented to the parliament on April 27, 2023. In the document, the government highlighted that the UKGC’s fees needed further review to ensure it continued to deliver its core responsibilities.

Previously, funding for projects and services tackling gambling harm has been based on a system of voluntary contributions. Now, the government has made this mandatory by introducing a gambling statutory levy paid by operators. The Commission will distribute the funds under the direction and approval of the Treasury and Department for Digital, Culture, Media & Sport (DCMS) ministers.

On November 27, 2024, the government’s response to the consultation on the structure, distribution and governance of the statutory levy was published.

According to the paper, all gaming operators must contribute between 0.1% and 1.1% of their Gross Gaming Yield (GGY). The capital will be used to fund research, prevention, and treatment (RPT) of gambling harm. The new regulations will come into force on April 6, 2025, while the first payments must be made by October 1, 2025.

The Structure and Distribution of the Levy – Main Takeaways

The new UK gambling levy has different rates for different operators. For example, online platforms must pay 1.1% of their GGY, while land-based casinos and betting venues are subject to 0.5% and 0.2% tax.

The government will carefully manage the handover between the current funding arrangements and the future statutory one to make sure operators aren’t double-charged and have sufficient time to prepare for the transition.

The UKGC will collect and administer the gambling statutory levy. It will be distributed for research, prevention, and treatment under the direction of the UK, Scottish, and Welsh governments. Each component of the RPT system will receive a different portion of the levy.

The RPT system will naturally evolve over time as the public’s changing needs and demands on the plan become clearer. Before deciding on the distribution, the government aimed to establish a system that balanced investment and improved safety standards.

Meanwhile, the priority was to find an adaptable strategy and clear objectives to measure the new regulations’ effectiveness in reducing gambling-related harm.

More Upcoming Changes in 2025: Gambling Deposit Limits

In 2020, the UKGC conducted research on how consumers engage with responsible gambling tools, showing that only 11% of players use deposit limits. The success of other tools was even lower, with only 6% of the players having ever taken reality checks and 5% having signed up for time-outs.

Effective 31 October, 2025, all licensed operators will be required to ask customers to set gambling deposit limits before making their first transaction. Deposit settings must be easy to access and modify, and gambling platforms must remind their customers to review them every six months.

Transparency and Protection of Player Funds

Operators holding customer funds must disclose whether these funds are protected in the case of insolvency in their terms and conditions. Details on the level of protection and the method used to achieve it must also be accessible upon depositing money.

Protection levels must be categorized as:

• Not protected – no segregation
• Not protected – segregation of customer funds
• Medium protection
• High protection

Starting from 31 October, operators whose customer funds are “not protected” in the event of insolvency must remind consumers every six months about the lack of protection.

Although gambling operators are not legally obligated to secure customer funds against insolvency, many choose to do so voluntarily. The changes will provide transparency to players regarding which companies protect their funds.

Conclusion

The UK gambling levy will start on April 6, alongside the Gambling Commission’s deposit limit rules later this year. By introducing significant changes in research, prevention, and treatment funding, the new regulations aim to create a safer online gaming market.

Consumers will be able to easily decide on financial limits and keep track of their spending. They will now have a clear picture of what happens to their funds in case an operator becomes insolvent.

On the other hand, gambling business owners have mixed feelings on the topic. Some participate in responsible gambling initiatives and are already modifying their T&Cs to be more transparent. Others think that deposit limits may deter casual players and support the idea that using such responsible gaming tools should remain optional.