The levies replace the voluntary Research, Education, and Treatment (RET) contributions. To ensure payment, the UKGC has framed payment of gambling levies as a license requirement for casino operators. Late payments and failure to pay could trigger enforcement action as serious as license suspension or withdrawal.
Who Pays What
The UK gambling industry now faces what might be called the most significant financial shake-up since the Gambling Act of 2005. Industry stakeholders, including casino operators and charity organisations that benefited from the RET fund, are left in the dark as to what the implications of these bills will be. There is also a lot of uncertainty about how funds will be administered.
The levy uses a tiered percentage model. Online casinos and other remote operators face the highest rate at 1.1% of relevant revenue, while land-based casinos and betting shops will pay 0.5%, and society lotteries only 0.1%. Any total that amounts to less than £10 will be exempt from payment.
There are several local online casinos that accept UK players, offering these players interesting perks like useful bonuses and hundreds of gaming options. These platforms are some of the most preferred as they offer users significant value.
However, many online casinos are the hardest hit. Online operators already face advertising constraints, affordability checks, and other compliance costs. The additional 1.1% levy will cut into already thinly stretched margins, potentially impacting promotional strategies and product offerings.
While land-based operators might benefit from significantly lower levy bills, it should be remembered that these establishments are under other pressures. Many brick-and-mortar casinos face venue closure and reduced footfall as they compete directly with more convenient online casinos.
While large multinational operators may be able to absorb the costs and adjust their prices, smaller firms could face cash-flow problems or even consider closing. This scenario would create industry consolidation that would benefit market leaders.
How Invoices Are Calculated
For most operators, the first statutory year invoice returns are calculated from July 2024 to March 2025, annualised. Society lottery licenses follow a financial year from April to March. The Commission has published detailed levy calculation rules.
Remote operators that host equipment in Great Britain or hold a software operation license must include all globally derived income from those assets. This rule widens the tax base for some firms and increases allocation complexity.
Revenue definitions vary. For non-lottery operators, stakes plus ancillary incomes such as tournament fees and poker rake are counted, minus prizes. For lottery operators, net proceeds after prizes and distributions are counted.
Where Will the Cash Go?
The statutory levy replaced the earlier voluntary RET model and was enacted via The Gambling Levy Regulations 2025 and informed by subsequent guidance, and came into effect on the 6th of April 2025.
Government modelling projects that the income generated from the levy will amount to roughly £90 – £100 million a year. The projected income is approximately double the voluntary contributions made by organisations in recent years.
The government intends to distribute these funds across three public bodies, namely treatment, prevention and education, and research. A large share will go to the Department of Health and Social Care and NHS-led services for treatment. While exact proportions and governance of the funds remain a political decision, the DCMS has promised governance structures, although details are still being contested.
Charities, GambleAware, and Governance Fears
As the statutory levy takes hold, GambleAware – the largest recipient of RET funds for many years – is winding down their operations and will conclude all activity by March 2026. Critics worry about the continuity of specialist services during the handover, especially as the government hasn’t issued a decision addressing this yet.
Campaigners and service providers have urged for an independent, transparent governance model to guide the application of the funds. To this effect, the advocacy group Better Change submitted a formal governance proposal to the DCMS, warning that weak oversight could risk undermining decades of progress and disadvantage community providers. The group argued for an impartial commissioning framework to protect service continuity.
Business Risks Beyond the Bill
The Betting and Gaming Council and other trade bodies agree on the need for steady funding. But they also warn that the new levy compounds regulatory burdens. As such, it could exacerbate costs for those operators already investing in safer-play measures.
While the UK is on track to be the fastest-growing European economy over the next twenty years, its gambling sector faces a very uncertain future. Non-payment or errors in returns currently carry outsized regulatory risk for operators. Invoices must be paid in full, cannot be split into instalments, require precise invoice referencing, and cannot be late (unless an administrative error can be proved). Compliance failures can potentially cascade into license challenges, reputational harm, or enforcement measures.
Operational teams must now reconcile returns in compressed timelines, check cross-border income inclusion, and manage cash flow, all before the 1 October deadline.
Economists and industry analysts expect that organisations will adjust prices or make promotional changes to manage the pass-through in the short term. But they note that long-term responses could include market consolidation, reduced product innovation, or even efficiency drives.