Baroness Twycross. © House of Lords 2025 / photography by Roger Harris.
The UK government has implemented a new statutory levy on gambling companies, marking a significant shift in policy aimed at tackling gambling-related harms.
The levy, which came into force on April 6, replaces the longstanding voluntary funding system and is expected to generate around £100 million annually to support research, prevention and treatment services.
Under the new rules, online gambling operators will contribute 1.1% of their Gross Gambling Yield (GGY), while land-based casinos and betting shops will face a lower rate of 0.4%. Other operators will fall into tiers based on the size and type of their business, with rates ranging from 0.1% to 1.1%.
The funds raised will be distributed primarily to the National Health Service in England, Scotland and Wales, enabling an expansion of services for individuals affected by gambling-related harm. Additional funding will be directed toward independent research initiatives and preventative programmes designed to reduce risk across the population.
Announcing the measures, Gambling Minister Baroness Twycross said the new levy represented "a significant step forward for the sector" and would ensure a sustainable, transparent funding stream for harm reduction. “We are delivering on our promise to protect the most vulnerable and build a safer gambling system,” she said.
The move follows a broader package of reforms announced in the government’s Gambling White Paper in 2023. Among these are new limits on online slot machine stakes, set to take effect from April 9. Players aged 18 to 24 will face a maximum stake of £2 per spin, while those 25 and over will be limited to £5 – aligning online gambling more closely with land-based regulations.
Industry response to the statutory levy has been mixed. The Betting and Gaming Council (BGC), which represents major UK gambling firms like Karamba, said it supported efforts to reduce gambling harm but warned the new levy could hit land-based businesses particularly hard. “It is vital that regulation remains proportionate and reflects the different challenges across the sector,” a BGC spokesperson said.
The Gambling Commission, the UK regulator, will oversee the collection and distribution of the funds, working with a newly established Levy Board comprising representatives from government departments and public health bodies.
With the UK gambling industry facing increased scrutiny and regulation, the statutory levy marks a turning point in how the government funds its response to gambling-related harm – shifting the financial burden firmly onto operators.