The UK Gambling sector is preparing for significant changes as advocates are now urging the Labour government to follow through with plans to implement a £100 million annual levy on gambling firms.

This mandatory contribution, set to replace the current voluntary system, was proposed by the previous Conservative government as part of a broader set of measures outlined in the Gambling Act whitepaper. 

The levy will require online casinos and remote betting platforms to contribute 1% of their earnings, while traditional betting shops and land-based casinos will pay 0.4% of their revenue. Casinos regulated in Malta or other offshore jurisdictions are not automatically exempt from UK regulations if they hold a UK Gambling Commission licence in addition to their offshore jurisdiction licences. 

The extent of the impact on offshore those with UK licences would depend on their specific business model and regulatory strategy.

Industry experts estimate the levy could raise between £90 million to £100 million annually by 2027. For an industry that generates approximately £10.9 billion in 2023, this would be a new significant financial obligation.