Following the Department for Culture, Media and Sports’s (DCMS) review of the Gambling Act 2005, the gambling white paper published in April 2023 set out the previous government’s plans for modernising the regulation of the gambling sector. One of the key proposals in the white paper was the introduction of a statutory levy on gambling operators using existing powers under the Gambling Act 2005 to provide increased, trusted and sustainable funding for research, prevention and treatment (RPT) of gambling-related harms. Following a public consultation, which ran from 17 October to 14 December 2023, and analysis of the responses to the consultation, the UK government will now introduce a statutory levy charged to all licenced gambling activity at varying levels depending on the sector and nature of the gambling activity to ensure impacts are proportionate.

The statutory levy will be introduced via secondary legislation and commenced in April 2025 with funding flowing later that year. The levy will be collected and administered by the Gambling Commission (‘the Commission’) under the strategic direction of the UK government, replacing the current system of voluntary industry contributions. Levy funding will be directed in specific proportions for the purposes of research, prevention and treatment. Each stream of the levy system will also have a lead commissioning body:

• Research: 20% of funding to UK Research and Innovation (UKRI) for the establishment of a bespoke Research Programme on Gambling (RPG), and to the Gambling Commission to direct further research in line with the licensing objectives
• Prevention: 30% of funding to develop a comprehensive approach to prevention and early intervention across all three nations of Great Britain. Further consideration of the evidence is needed in order to appoint an appropriate body to lead this critical part of the government’s approach to tackling gambling-related harm.
• Treatment: 50% of funding to NHS England, and appropriate bodies in Scotland and Wales, to commission treatment and support services, working collaboratively with the third sector

DCMS consulted broadly on the topic of prevention in order to get the best evidence. Ultimately, prevention is a crucial part of this government’s efforts to tackle gambling-related harm and it is important we take the time to get this right. However, the statutory instrument introducing the levy is silent on the distribution of levy funding, and our overriding priority is to ensure the statutory levy is in force by next year. We have published this initial response to set out key aspects of the future system as we make further progress on the legislative process and will continue to work at pace to finalise our decisions on prevention soon. We will publish a further response document setting out our final decisions on prevention in the near future.

To guarantee sufficient accountability and transparency within the new system, we will establish appropriate governance arrangements consisting of a Levy Board for the UK, Scottish and Welsh governments to monitor the health and impact of the levy system, and an Advisory Group to provide informal advice to lead commissioning bodies regarding strategic and funding priorities. These arrangements will allow us to take an agile approach to track the effectiveness of the new funding and commissioning model. The UK government will formally review the statutory levy system within five years with the first formal review expected by 2030.

While the levy represents a unique opportunity to expand RPT provision through a landmark change to the funding arrangement, supporting us to deliver on the UK government’s aim to reduce gambling-related harms, it is imperative that disruption to existing services throughout the transition is minimised. The expertise and experience within the current system, as well as the crucial treatment services delivered by the third sector through the National Gambling Support Network (NGSN), must be preserved throughout the transition period.

As such, the government is clear that operators should continue to make financial contributions maintaining current levels of funding in the system, in line with requirements under existing Gambling Commission licence conditions, until the commencement of the statutory levy. Likewise, it is important that all parts of the current system, statutory and third sector, should continue to collaborate, ensuring that people experiencing harm continue to be able to access services they need as we move towards the new system. For example, the NHS and treatment providers in the NGSN should continue to work together, within the parameters of the existing funding regime to provide relevant services for those in need, and to support a smooth transition.

Since the consultation, we have made minor changes to levy rates to those proposed originally, but we are confident that impact on operators will be minimal. Gambling Commission analysis of industry data has shown that the levy rates as previously proposed would raise c.£84 million each year. We have therefore proposed slightly increasing rates for each category - to 1.1% for online operators, 0.5% for casinos and bookmakers and 0.2% for bingo - to raise approximately £90 million to £100 million per year

This document sets out the UK government’s decisions regarding the key aspects of the design and implementation of the statutory levy, summarised in the table on the website.

[See also, press releases Consultation on the statutory levy on gambling operators and Statutory levy and online slot stake limits to be introduced to tackle gambling harm]