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The Gambling Levy Regulations 2025

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2025, ISBN 9780348267211

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This draft Statutory Instrument supersedes the draft of the same title which was laid before Parliament on 10th December 2024 and published on 10th December 2024 (ISBN 978-0-348-26692-4). It is being issued free of charge to all known recipients of that draft Statutory Instrument.

Draft Regulations laid before Parliament under section 355(4)(f) of the Gambling Act 2005 (c. 19), for approval by resolution of each House of Parliament.

BETTING, GAMING AND LOTTERIES

Made

Coming into force 6th April 2025

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 123 and 355(1) of the Gambling Act 2005f1.

The Secretary of State has consulted the Gambling Commission in accordance with section 123(7) of the Gambling Act 2005.

In accordance with section 355(4)(f) of the Gambling Act 2005, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

2005 c. 19.

Contents

  1. 1Citation, commencement and extent
  2. 2Interpretation
  3. 3Requirement to pay a levy
  4. 4The amount of the levy
  5. 5Timing of payment of the levy
  6. Signature
  7. Explanatory note

1Citation, commencement and extent

These Regulations—

(a)

may be cited as the Gambling Levy Regulations 2025;

(b)

come into force on 6th April 2025;

(c)

extend to England and Wales and Scotland.

2Interpretation

(1)

In these Regulations—

  • “first levy period” means—

    1. (a)

      in relation to a holder of a lottery operating (society) licence, the period of 12 months beginning with 1st April 2024;

    2. (b)

      in relation to a holder of any other kind of operating licencef1, the period of 9 months beginning with 1st July 2024;

  • “leviable amount” has the meaning given in paragraphs (3) to (5);

  • “levy period” means—

    1. (a)

      the first levy period;

    2. (b)

      the period of 12 months beginning with 1st April 2025 and each subsequent period of 12 months beginning with 1st April;

  • “non-remote general betting (on-track or on-course) operating licence” means a non-remotef2 general betting operating licence under the authority of which the licensee provides—

    1. (a)

      from a dog trackf3, facilities for betting on the outcome of greyhound races;

    2. (b)

      from a horse-race coursef4, facilities for betting on the outcome of horse races.

(2)

In these Regulations, the following terms have the meanings given by regulation 2(1) of the Gambling (Operating Licence and Single-Machine Permit Fees) Regulations 2017f5—

  • “betting intermediary (trading room only) operating licence”;

  • “lottery operating (external lottery manager) licence”;

  • “lottery operating (society) licence”.

(3)

In relation to a holder of an operating licence which is not a lottery operating licence, the “leviable amount” in respect of a levy period is—

(a)

the aggregate of—

(i)

amounts paid during the levy period to the holder of the operating licence by way of stakes in connection with the activities authorised by the operating licence, and

(ii)

amounts (exclusive of value added tax) that otherwise accrue during the levy period to the holder of the operating licence directly in connection with activities authorised by the licence, minus

(b)

the aggregate of amounts deducted during the levy period by the holder of the operating licence for the provision of prizes or winnings in connection with the activities authorised by the licence.

(4)

In relation to a holder of a lottery operating (external lottery manager) licence, the “leviable amount” in respect of a levy period is—

(a)

the aggregate of amounts paid to, or otherwise obtained by, the holder of the operating licence during the levy period by way of fees in connection with the lotteries promoted in reliance on the operating licence, minus

(b)

the aggregate of amounts deducted during the levy period from the amounts described in sub-paragraph (a) by the holder of the operating licence for the provision of prizes in connection with the lotteries promoted in reliance on the operating licence.

(5)

In relation to a holder of a lottery operating (society) licence, the “leviable amount” in respect of a levy period is—

(a)

the aggregate of the proceeds of lotteriesf6 promoted in reliance on the operating licence which accrue during the levy period, minus

(b)

the aggregate of amounts deducted during the levy period from the proceeds described in sub-paragraph (a) by the holder of the operating licence for—

(i)

the provision of prizes in connection with the lotteries promoted in reliance on the operating licence, and

(ii)

a purpose described in section 99(2) of the Gambling Act 2005.

(6)

For the purposes of these Regulations, an operating licence which is a licence of more than one of the kinds described in regulation 4(2) to (5) is to be treated as if each of its kinds were a separate operating licence of that kindf7.

3Requirement to pay a levy

(1)

Starting with the first levy period, a person who is a holder of an operating licence during a levy period must pay a levy to the Commission in respect of that levy period.

(2)

Paragraph (1) does not require any person to pay a levy in respect of a levy period where the amount of that levy (as determined in accordance with regulation 4) is £10 or less.

4The amount of the levy

(1)

Paragraphs (2) to (5) set out how to determine the amount of the levy—

(a)

in relation to a holder of a lottery operating (society) licence, in respect of each levy period;

(b)

in relation to a holder of any other kind of operating licence, in respect of each levy period other than the first levy period.

(2)

For holders of the following operating licences, the amount of the levy is 1.1% of the leviable amount—

(a)

a gambling software operating licence;

(b)

a remotef1 betting intermediary operating licence which is not a betting intermediary (trading room only) operating licence;

(c)

a remote bingo operating licence;

(d)

a remote casino operating licence;

(e)

a remote general betting operating licence.

(3)

For holders of the following operating licences, the amount of the levy is 0.5% of the leviable amount—

(a)

a betting intermediary (trading room only) operating licence;

(b)

a non-remote betting intermediary operating licence;

(c)

a non-remote casino operating licence;

(d)

a non-remote general betting operating licence which is not a non-remote general betting (on-track or on-course) operating licence.

(4)

For holders of the following operating licences, the amount of the levy is 0.2% of the leviable amount—

(a)

a gaming machine general operating licence for an adult gaming centre;

(b)

a non-remote bingo operating licence;

(c)

a non-remote general betting (on-track or on-course) operating licence.

(5)

For holders of the following operating licences, the amount of the levy is 0.1% of the leviable amount—

(a)

a gaming machine general operating licence for a family entertainment centre;

(b)

a gaming machine technical operating licence;

(c)

a lottery operating licence;

(d)

a pool betting operating licence.

(6)

For holders of an operating licence which is not a lottery operating (society) licence, the amount of the levy in respect of the first levy period is A × 1⅓, where A is the amount of the levy that would be determined in respect of that period in accordance with whichever of paragraphs (2) to (5) apply to determine the amount of the levy for the kind of operating licence in subsequent levy periods.

5Timing of payment of the levy

The levy in respect of a levy period must be paid before the 1st October following the end of that levy period.

Signature

Name

Title

Department for Culture, Media and Sport

[Date]

Explanatory note

(This note is not part of the Regulations)

These Regulations are made under section 123 of the Gambling Act 2005 (c. 19) (“the Act”). They require holders of operating licences (within the meaning of sections 126(1) and 353(1) of the Act) to pay an annual levy to the Gambling Commission.

Regulation 3 imposes a liability on a person who is a holder of an operating licence to pay a levy in respect of the first and each subsequent levy period (as defined in regulation 2(1)). No levy is payable where the amount of the levy would be £10 or less.

Regulation 4 sets out how to calculate the amount of the levy.

Regulation 5 requires the levy in respect of a levy period to be paid by the 1st October following the end of that levy period.

In accordance with section 123(4) of the Act, any sum due by way of levy by virtue of these Regulations is to be treated for the purposes of the Act as if it were due by way of annual fee under section 100. Consequently, the Gambling Commission must, in accordance with section 119(3), revoke an operating licence if the holder of the licence fails to pay the levy (unless the Gambling Commission decides not to revoke the licence because it thinks that the failure to pay is attributable to administrative error).

A full impact assessment has not been produced for this instrument.