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The UK government has implemented a new gambling levy, effective April 6, 2025. This new levy, or tax, will replace the current policy, which is voluntary contributions from gambling operators. It was approved by Parliament on February 12, 2025.
With this levy, an estimated £100 million will be generated to fund initiatives to assist with gambling-related issues, such as prevention, treatment, and more research.
This process began in 2023 when the Department of Culture, Media and Sport conducted a consultation which concluded in December. The levy was then proposed in the 2023 Gambling Act white paper.
According to research from BonusFinder UK, the levy will apply to all UK-licensed gambling operators, both online and retail, as well as offshore operators that offer gambling services in the UK.
How It Impacts Deposit Bonus Casino Offers
With the addition of this levy, it’s possible operators will alter their deposit bonuses to be less generous to the player.
For example, the deposit matches could go to 50% instead of 100%, the cap on bonuses could go down, and there could be fewer no-deposit offers. Some of the top brands could maintain these, but the smaller ones vying for market share may be forced to rein them in.
Something else players might be curious about is wagering requirements. With welcome bonuses, say, for example, you get a 100% deposit bonus up to $1,000 at a deposit bonus casino, and there are 10x wagering requirements. This means you’ll need to wager $10,000 in cash to access that $1,000 bonus as withdrawable cash.
With this new levy, yes, it’s possible those could increase to offset the financial strain put on operators.
Other things players could run into are shorter periods for bonuses and caps on winnings from bonuses or free spins.
Legal and Financial Implications for Operators
The new levy has introduced a ring-fenced tax on gross gambling yield to add to other obligations. Before, it used to be known as 'voluntary RET (Research, Education, and Treatment) donations,' but now, here’s how the new levy works:
● Online casinos and sportsbooks: 1.1% of gross gambling yield
● Land-based casinos: 0.5% of gross gambling yield
● Lower-risk gambling outfits (such as charity raffles, local bingo halls): 0.1% of gross gambling yield
Operators will now need to submit their first levy payment on time by October 1, 2025.
Additionally, they’ll need to provide financial disclosures to the Gambling Commission, and more.
If operators don’t comply, their license could be reviewed, they could be fined, or even suspended.
Adapting Bonus Strategies Post-Levy
Bigger brands could likely stomach the levy, but smaller brands need to figure some things out. Some things they could do could include low-wagering bonuses, cashback offers, VIP programs, and smaller promotions more frequently to keep people engaged.
Also, the marketing language used will be altered. For example, clearer terms and conditions, not using the word “free,” promote and build safer gambling tools, and alter bonuses to fit player behaviour more.
By doing this sooner rather than later, these operators will build player trust. In turn, this will lead to retention and word-of-mouth marketing that'll assist them in staying competitive amid the new levy landscape.
The goal for operators moving forward will be to maximise value as much as possible while keeping the levy in mind to ensure they can hang around for the long term.
The goal for operators will be to balance the appeal of the offers along with the responsibility that pleases players and regulators in the casino bonus UK market.
Final Thoughts: Opportunity or Setback?
While this new levy could be hard on providers, it does allow for an avenue to fund research and treatment to hopefully keep players safe and bring more awareness. From here, operators who move quickly and adapt will provide long-term advantages to their brand. If they aim to prioritise transparency, responsible play, and promotions with additional value, this will only build player
trust and, in turn, cause retention.
Instead of trying to stick with the old model, the best bet is for operators to play in this new “arena” and refine their offerings to provide more value to players.
As this levy continues, there will certainly be new updates, and our industry professionals will continue to monitor this situation and stay informed.
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