23 Apr 2025 2 min read

UK Labour Government Introduces £100 Million Annual Gambling Levy

The UK has introduced a mandatory gambling levy, replacing voluntary donations. Operators must now contribute up to 1.1% of their revenue to fund treatment, prevention, and research—marking a major shift toward responsible, regulated gambling oversight.

Photo by Giammarco Boscaro / Unsplash

In April 2025, the UK government implemented a long-awaited statutory levy on gambling operators, marking a pivotal step in its broader agenda to reduce gambling-related harm across the country.

Replacing the previous voluntary donation system, this mandatory levy now requires all licensed operators—both online and land-based—to contribute a fixed percentage of their gross gambling yield (GGY) to fund support services and research.

The reform is one of the most significant regulatory developments in the UK gambling industry in over a decade. While it's welcomed by health advocates and charities, it has also raised concerns among some operators—particularly smaller, land-based businesses—about its financial impact.

Where the Money Goes: Funding Allocation

The total amount raised—projected to be over £100 million annually—will be distributed across three main areas:

50% to the National Health Service (NHS): Funding for gambling addiction treatment, including the expansion of specialist clinics, mental health services, and crisis support programs.
30% to Prevention: Education campaigns targeting at-risk demographics, awareness programs in schools, and support for families affected by gambling harms.
20% to Research: Independent, peer-reviewed studies on gambling behavior, harm reduction strategies, and emerging risks such as loot boxes and crypto gambling.

This allocation model emphasizes a public health approach to gambling, prioritizing medical intervention and evidence-based policy making.

Impact on Operators

The reaction from operators has been mixed. While many acknowledge the need for consistent RET funding, some—particularly those in the land-based sector—have voiced concerns about the financial burden.

Online Operators

For larger digital platforms, the 1.1% levy is significant but manageable. Most already contribute to RET initiatives and can absorb the cost or adjust their business models accordingly. However, newer or smaller online firms may face tighter margins and increased pressure to consolidate or seek mergers.

Land-Based Operators

Brick-and-mortar venues, especially independent betting shops and bingo halls, argue that the levy adds strain to an already fragile post-COVID recovery. Despite paying a lower rate, many feel the cost structure does not fully account for their operational challenges or role in offering a more controlled gambling environment.

Compliance and Strategy

Operators will need to adjust their financial planning, enhance reporting infrastructure, and potentially reconsider product portfolios to remain compliant. In the long term, those that align closely with responsible gambling practices may find themselves better positioned both reputationally and competitively.

Impact on Consumers

For the public, the statutory levy promises more robust support systems and greater transparency. Key anticipated benefits include:

More NHS Gambling Clinics: The expansion of treatment services across England, Scotland, and Wales, reducing wait times and increasing accessibility.
Improved Public Awareness: Nationwide education campaigns will aim to destigmatize treatment and improve understanding of gambling-related risks.
Better Informed Policy: Increased research funding will enable more accurate, data-driven regulation tailored to evolving user behaviors and new technologies.

Importantly, consumers are unlikely to see a direct cost increase, as the levy is structured as an operator-side expense. However, some firms may reduce promotional offers or increase minimum bet sizes to offset operational costs.

A Step Toward Long-Term Reform

This statutory levy is part of a broader movement in UK gambling regulation. Other reforms under discussion include affordability checks, stake limits for online slots, and stricter marketing restrictions. Together, these measures reflect a cultural shift from viewing gambling purely as entertainment to recognizing it as a public health issue requiring systemic oversight.

Industry watchdogs and gambling reform campaigners, including organizations like GambleAware and the NHS Gambling Service, have welcomed the levy. Many view it as a long-overdue correction to an industry that, for years, operated with minimal financial responsibility toward the harms it can cause.