30May

White Paper Series: Gambling Commission update on Stage 2 of the financial risk assessments pilot

30th May 2025 Ting Fung 6

The Gambling Commission has provided an update on Stage 2 of its three-stage pilot of financial risk assessments (the “Pilot”) and what to expect from Stage 3. As a reminder, Stage 1 looked at a cohort of inactive customers, while Stage 2 looked at active customers (for a refresh on Stage 1 and what the Pilot entails, see our previous blog, White Paper Series: Gambling Commission update on the financial risk assessments pilot).

At each stage of the Pilot, the Gambling Commission has been testing at least one of the following success criteria, and each stage is expected to provide different results.

Frictionless part 1: What proportion of those high-spending customers checked could get a frictionless financial risk assessment if they were introduced?
Frictionless part 2: How quickly could credit reference agencies return a financial risk assessment?
Data relevance and accuracy: Is using credit reference data meaningful for understanding of an individual customer’s current or imminent overall financial risk and financial vulnerability?
Implementation issues: How could the data be presented to operators to help understand the level of financial risk or vulnerabilities associated with individual customers? How could operators build financial risk assessments into their overall customer interaction processes?

Where are they now?

Stage 2 of the Pilot is now complete and has provided more data on the potential for frictionless assessments. Stage 3 has just come to an end and reporting is taking place. This will be followed by a post-Stage 3 analysis period which will allow the Gambling Commission to further assess issues that have been raised earlier in the Pilot.

Stages 1 and 2 both tested customer accounts which had, during a set historical period, met high-spending thresholds. The account details were shared with one or more credit reference agencies which provided a financial risk assessment at the point the threshold was met. This means the Pilot is testing what financial risk indicators were present when the account met the high spending threshold. As a result, the credit reference agencies are replicating the data returns to operators as close to automated or live implementation as possible.

Stages 1 and 2 primarily informed the first success criterion on the proportions of customers that might be able to receive a frictionless check. It also gave the Gambling Commission some insights on data quality and understanding (success criterion 3) and implementation issues (success criterion 4). The emerging findings from both stages were used and are being used to inform the Gambling Commission’s approaches on Stage 3 of the Pilot and the post-Pilot analysis approach.

Findings and figures from Stage 2

Stage 2 of the Pilot comprised approximately 1.7 million financial risk assessments (an increase from Stage 1) across the three credit reference agencies in relation to approximately 860,000 accounts – although, this number is not indicative of how many accounts might be assessed if the assessments were introduced in a live environment.

Findings include:

Increased percentage of frictionless checks: Stage 2 saw an increase from 95% to 97% in the percentage of assessments that were possible in a frictionless manner (compared to the 80% estimated in the Government’s 2023 White Paper). Included in this category is the “thin file” rate. “Thin files” are where the customer could be identified but there was limited information and no adverse information. The thin file rate stayed at approximately 3% of the assessments in both Stages 1 and 2.

Reduced percentage of unmatched accounts: Approximately 3% of the assessments of active accounts (i.e. the highest spending accounts as opposed to the total number of accounts) were not matched in Stage 2, compared to 5% in Stage 1. The Gambling Commission explains that the more recent period used in Stage 2 may have contributed to a reduction in the unmatched category as the operators’ data may have been more up to date. This result was favourable compared to the 20%, who were estimated in the White Paper to not have a frictionless assessment. The unmatched category also includes the “invalid rate” (concerning issues in the operators’ data provided to credit reference agencies – such as data formatting issues, invalid data or duplications in the data provided to credit reference agencies by operators), which saw a slight reduction – albeit the rate has been less than 1% in Stages 1 and 2. Customers under 25 years of age were more likely to be unmatched than those who were 25 and over.

Percentage of frictionless assessments: The Gambling Commission used Stage 2 proportions to give a reasonable estimate of 0.1% active accounts that would be unable to receive a frictionless assessment at the consultation proposed thresholds, compared to the 0.6% estimated in the White Paper. All three credit reference agencies were conducting frictionless assessments at a minimum of 95.47% in Stage 2.

Financial risk in the customer base: Data shared from two credit reference agencies showed that customers who met the thresholds for the pilot where they conducted assessments were between twice and four times more likely to have a debt management plan, and between twice and five times more likely to have a default in the last 12 months, than the type of consumer in their comparison UK populations.

Credit reference agency variations: Whilst it is expected that the credit reference agencies would have their unique systems, operators continued to see differing results from different credit reference agencies without sufficient information to understand the reasons why there might be differing results. This will be a key focus for the post-Stage 3 analysis phase.

The next steps

The Gambling Commission is now further exploring data consistency across credit reference agencies, as well as exploring options to focus identification through financial risk assessments of the most severe financial difficulties.

It will also continue work to support operators to consider how they could support customers and emphasises that,

“Financial risk assessments are not designed to be acted on in isolation, as that would fail to balance the financial risk alongside everything else that is known about the customer.”

Data-sharing for Stage 3 of the Pilot completed on 30 April, and the Gambling Commission has moved to an analysis phase which will run into the summer period.

Please get in touch with us if you have any questions about the financial risk assessments Pilot or its findings from Stages 1 and/or 2.

See our White Paper Series for more information and updates.

19May

White Paper Series: Draft Casino Regulations and statutory instruments for non-remote casinos laid before Parliament

19th May 2025 Harris Hagan 31

On 12 May 2025, the Department for Culture, Media and Sport published its draft proposals to modernise the rules relating to machine allowances and gaming floor dimensions in land-based casinos. The Casinos (Gaming Machines and Mandatory Conditions) Regulations (“the Casinos Regulations”) have been laid in draft before Parliament and form part of a package of interlinked statutory instruments (“SI”) which were published alongside the Casinos Regulations to enable proper scrutiny of the changes to the regulatory framework.

The Statutory Instruments

Two SIs have been published, namely:

the Gambling Act 2005 (Commencement No. 6 and Transitional Provisions) (Amendment) Order (the “No. 6 Amendment Order”); and
the Gambling Act 2005 (Premises Licences and Provisional Statements) (Amendment) (England and Wales) Regulations (the “Premises Licences Amendment Order”).

The No. 6 Amendment Order will amend The Gambling Act 2005 (Commencement No.6 and Transitional Provisions) Order 2006 by extending the machine entitlements for converted casinos located in England and Wales so that they may make up to 80 Category B, C, or D machines available to use, as long as they meet certain criteria, including:

maintaining a gambling floor area of no less than 280m²; and
ensuring that the number of gaming machines is not more than five times the number of gaming tables which are being ‘used’. A gaming table is ‘being used’ at a particular time if it is actually being used to play a casino game, or is available to be used to play a casino game.

Only converted casinos with a gambling area of at least 500m² will be permitted the full entitlement of 80 gaming machines. For any converted casinos with a smaller gambling area, the No. 6 Amendment Order sets out a tiered scale linking the maximum number of gaming machines to the minimum gambling area. The maximum permitted number of gaming machines is reduced by 5 for every 20m² decline in minimum gambling area, from 80 gaming machines for 500m² down to a maximum of 25 gaming machines for a minimum gambling area of 280m².

Whilst the No.6 Amendment Order significantly increases machine entitlements for converted casinos, it also intends to close a loophole in the existing framework. Currently, where two (or more) converted casino premises are connected, they can effectively double (or triple etc.) their gaming machine entitlement. The No. 6 Amendment Order makes clear that for such connected converted casino premises, no more than 80 gaming machines are permitted across both premises – taken together – unless customers moving from one premises to the other have to travel through an area which is not subject to certain specified licences or permits issued under the Gambling Act 2005.

In addition, the No. 6 Amendment Order will allow betting to take place in casinos covered by a converted casino premises licence, which is currently only permitted in Gambling Act 2005 small and large casinos.

The Premises Licences Amendment Order updates the current Gambling Act 2005 (Premises Licences and Provisional Statements) Regulations 2007 so that any converted casino applying to utilise the new entitlements under the No.6 Amendment Order must submit a scale plan indicating an area for ‘table gaming’. This must identify the “location and extent of any part of the premises which will be the table gaming area” and “any other part of the premises which will be used for providing facilities for gambling in reliance on the licence.” Currently, only Gambling Act 2005 small and large casinos are required to identify a table gaming area on their plans.

The Casinos Regulations

In addition to effecting the SIs, the draft Casinos Regulations propose:

Increasing the ratio of gaming machines permitted per gaming table in Gambling Act 2005 small casinos from two per table to five per table, whilst maintaining an overall cap of 80 machines per premises.
Reducing the minimum size of the table gaming area in small casinos from 500m² to 250m².

Timing

Whilst they are currently in draft form, the SIs state that they will come into force on 22 July 2025.

If the draft Casinos Regulations are approved by both Houses, Ministers intend to make the No.6 Amendment Order prior to signing the draft Casinos Regulations.

Please let us know if you have any questions on the above and sign up to our blog to receive insight and commentary on the continued journey of the White Paper.

02May

HM Treasury Consultation: Tax Treatment of Remote Gambling

2nd May 2025 Harris Hagan 43

On 28 April 2025, HM Treasury launched a consultation on Tax Treatment of Remote Gambling (the “Tax Consultation”). The Tax Consultation aims to create a simpler, streamlined system by proposing a new, single Remote Betting & Gaming Duty which would replace the current tax regime for online operators.

Background and purpose of the Tax Consultation

Since 2014, remote gambling operators in the UK are subject to the following taxes:

General Betting Duty (“GBD”) – Due at 15% of gross profit for fixed-odds bets, totaliser bets on horse or dog races, and bets taken on betting exchanges, 10% for sports spread bets and 3% for financial spread bets.
Pool Betting Duty (“PBD”) – Due at 15% of gross profit on bets not at fixed-odds apart from those on horse and dog racing.
Remote Gaming Duty (“RGD”) – Due at 21% of gross profit and is payable on the provision of online gaming to a UK customer.

In the Tax Consultation, HM Treasury proposes to move to a single tax called Remote Betting & Gaming Duty (“RBGD”) for UK-facing remote gambling in order to harmonise the existing duties into a single rate. This tax would have in its scope betting and gaming activities offered remotely, such as online casino, bingo, and remote betting, including general and pool betting.

HM Treasury notes that “as remote gambling has matured, the distinctions in tax treatment between general betting, pool betting and remote gaming are less reflective of real-life distinctions in customer experience of the products”. Given the common features across the different forms of remote gambling, HM Treasury’s view is that “there is no longer a strong rationale to maintain this historical distinction” in the duty rates.

The Tax Consultation seeks views from stakeholders on the shape, scope, coverage, administration, and enforcement of the new proposed RBGD.

Consultation themes

The proposal of a single remote gambling tax

This chapter explains why the government is considering introducing a single RBGD and a high-level view of how the tax would operate. For instance, the government acknowledges that operators providing gambling to UK customers have limited familiarity with the UK tax system and its administration, therefore simplification is at the heart of this proposal.

As explained above, the proposal is to harmonise the current duty rates for RGD, GBD and PBD in a single rate. Should the government proceed with the RBGD, the rate will be set as part of the Budget process.

Basic framework and scope of the tax

This chapter details the proposed approach to use the existing ‘place of consumption’ (“POC”) framework. POC in this context means that a gamble or bet is subject to UK gambling duties if:

the person making the bet is a ‘UK person’;
it is made on UK premises where betting facilities are available.

This chapter also sets out the basis for calculation of taxable profits. Under the existing RGD, GBD and PBD regimes, gambling tax liability is calculated by applying the appropriate tax rate to taxable profits. Taxable profits are calculated based on stakes paid in, less prizes paid out. The government does not see the need to add unnecessary complexity by changing this and will mostly retain the current approach to establishing taxable profits (beyond the issues around freeplays, free bets and prizes discussed below).

Regarding the scope of RBGD, it is proposed that the government will be led by existing legal definitions of ‘remote’ gambling, as contained in section 154 of the Finance Act 2014, which reflect the definition of ‘remote gambling’ in section 4 of the Gambling Act 2005 and its regulatory licence structure.

Given the definition of ‘remote gambling’, all ancillary activities other than those covered by Bingo Duty, Gaming Duty or Machine Games Duty (and therefore already subject to other duties) would be in scope of RBGD. The remote betting activities of an on-course bookmaker and remote spread betting would also be activities included in RBGD. However, HM Treasury is seeking views on whether the inclusion of spread betting is appropriate, or whether alternative treatment is required.

Consistency of treatment of free bets, freeplays, and prizes

As freeplays and free bets are subject to tax-specific treatments, HM Treasury wants to test whether RBGD should adopt a common treatment for freeplays and free bets offered for all remote gambling.

Free bets

The government proposes to align the tax treatment of remote free pool bets with the treatment of free bets as stakes for GBD purposes. This means that when a customer places a free pool bet, the value of that bet would be included in the licensee’s taxable amount. Any winnings paid to UK customers from these taxable free pool bets would count as deductible expenditure in their duty calculation.

Freeplays

Currently, there is an exception for re-wagering under RGD, where only the first use of a freeplay has a notional value for the purposes of tax calculation. The introduction of RBGD provides an opportunity to consider the application of the re-wagering exception, alongside the introduction of a re-wagering cap taking effect on 19 December 2025, following the Gambling Commission’s Autumn 2023 consultation response.

The Tax Consultation welcomes suggestions for options to reform the treatment of freeplays and remove opportunities for avoidance.

Prizes

The government proposes to align the tax treatment of prizes by extending the current RGD provisions, including rules about valuation of prizes to all activities under RBGD. This would give betting providers scope for the deduction of non-money prizes and provide opportunities for innovation regarding prize offerings made to customers.

Under RBGD, it’s proposed to align the tax treatment of prizes with the approach under GBD and PBD, so that only winning prizes can be deducted.

Registration, returns and sanctions

This chapter sets out the government’s proposals for the RBGD administrative framework, including registration, remote filing, sanctions and enforcement.

To keep administrative changes for businesses to a minimum, the government intends to adopt the existing administrative framework for RBGD.

The government considers that the current sanctions available for enforcement of the tax regimes and unlicensed gambling are sufficient.

Next steps

The Tax Consultation will be open for 12 weeks, closing at 11:59pm on 21 July 2025. Responses can be submitted online, or by email to [email protected].

Please get in touch with us if you would like to discuss this matter further or require our assistance preparing responses.

28Apr

White Paper Series: The White Paper, 2 years on

28th April 2025 Jessica Wilson 44

The 27 April 2025 marks two years since the Government published its White Paper. As we reach the two-year anniversary, we take the opportunity to reflect on the last 12 months and consider what is in store for the upcoming year.

Where did we get to?

At the one-year anniversary of the White Paper, we noted in our blog that a lot of work had been done by all parties to advance the implementation of the proposals in the White Paper, particularly through the publication of numerous consultations from the Gambling Commission and Government. Whilst progress had been made, at that stage there was no clear direction of travel (until the Gambling Commission’s response to the Summer Consultation was published, just days after the one-year anniversary). Whilst the Government’s goal of implementing the main White Paper measures by summer 2024 seemed like a tight deadline – particularly for the requirements that required secondary legislation – at that time we understood that the Department for Culture, Media and Sport (“DCMS”) would be publishing responses to the consultations on the statutory levy and land-based measures “in the coming weeks”. The industry was also aware that there would be a General Election in 2024, and whilst delays were anticipated, it was thought that this was unlikely to affect the final outcome of the White Paper proposals.

What happened over the last 12 months?

Momentum continued as we entered the second year since the White Paper was published, and the Gambling Commission published its response to its Summer Consultation on the 1 May 2024. Setting out the planned approach for financial vulnerability checks, remote game design, direct marketing and some land-based changes, the consultation response provided the industry with some certainty and confirmation that tangible progress was being made.

However, all activity was brought to a halt when the General Election was announced on 22 May 2024. Originally anticipated for autumn 2024, the General Election took place on 4 July 2024, resulting in a new Labour government. As the new Government was finding its feet (and was on summer recess), momentum in progressing implementation of the White Paper proposals fizzled, and the proposals that required secondary legislation and parliamentary time were put on hold. The second half of 2024 was quieter while we waited patiently for the Government to make its next move.

The Government’s original target of summer 2024 came and went, and it was not until 27 November 2024 when DCMS published its initial response to its consultation on the statutory levy, and confirmed its approach regarding stake limits for online slots (which were originally anticipated to come into effect in September 2024).

As we entered 2025, activity started to increase. The Gambling Commission launched its January 2025 consultation regarding Gaming Machine Technical Standards and Testing Strategy on 29 January 2025, published responses to the Autumn 2023 consultation on 4 February 2025 and 26 March 2025, and launched a supplementary consultation regarding the Remote Technical Standards on 6 March 2025. Additionally, on 25 February 2025, statutory instruments for online slots stake limits and the statutory levy were signed into law.

One constant over the past year is the notable lack of progress in respect of the voluntary creation of a non-statutory Gambling Ombudsman, one of the cornerstone proposals of the White Paper. The Gambling Ombudsman is intended to be an independent, free to use, non-statutory body that will handle social responsibility complaints from consumers and was due to start taking claims from summer 2024.

Key 2024 – 2025 highlights for White Paper proposals at the time of writing are:

The Gambling Commission’s response to its Summer Consultation on 1 May 2024, which set out requirements for many White Paper proposals relating to financial vulnerability checks, remote game design, direct marketing requirements, land-based age verification, and changes to requirements to hold a personal management licence.

The introduction of financial vulnerability checks on 30 August 2024. As the most controversial White Paper proposal, the introduction of such checks is a milestone for the industry. The light-touch financial vulnerability checks involving the assessment of publicly available data came into force at £500 a month to ease introduction. The trigger was reduced to £150 a month from 28 February 2025.

The passing of a Statutory Instrument on 25 February 2025, introducing the statutory levy under The Gambling Levy Regulations 2025 (“The Levy Regulations”), which came into effect on 6 April 2025. The regulations require licensees to pay a mandated levy to the Gambling Commission, unless the amount of that levy is £10 or less. The Gambling Commission published supplementary guidance on 7 April 2025.

The passing of a Statutory Instrument on 25 February 2025, under The Gambling Act (Operating License Conditions) (Amendments) Regulations 2025. This introduced online slots stake limits at £5 for those aged 25 and over (applicable from 9 April 2025), and £2 for those aged 18-24 years old (applicable from 21 May 2025). The Gambling Commission published supplementary guidance on 30 January 2025.

April 2024 – April 2025 timeline for the White Paper proposals

1 May 2024 – The Gambling Commission published its response to its Summer 2023 Consultation. Its response confirmed (a) the introduction of light-touch financial vulnerability checks for gambling customers with a net deposit of more than £150 a month, (b) the launch of a pilot scheme to test how enhanced financial risk assessments will work in practice, (c) new remote game design requirements to extend the requirements that already apply to slots to other online products, resulting in publication of new remote technical standards, (d) changes to direct marketing requirements obliging online gambling businesses to provide options to opt-in to product types and channels, (e) requirements for all land-based licensees to carry out age verification test-purchasing, (f) changes to the LCCP to confirm that best practice for land-based operators is “Think 25”, and (g) extension of the management roles expected to hold a personal management licence.

1 May 2024 – The Betting and Gaming Council published the Industry Voluntary Code on Customer Checks and Documentation Requests Based on Spend (the “Code”). The Code was developed jointly between members of the Betting and Gaming Council and the Gambling Commission, and is a voluntary interim scheme intended to bring “consistency across the regulated sector for operators who adopt it – until the frictionless financial risk assessments set out in the Government’s White Paper can be developed, tested and implemented”.

15 May 2024 – Progression of the Criminal Justice Bill, setting out new powers for the Gambling Commission to more effectively take action against illegal online gambling, to the report stage.

16 May 2024 – DCMS published its response to its consultation on Measures relating to the land-based gambling sector. The response outlined the proposed implementation of measures to: relax casino rules for 1968 Act casinos, increase gaming machine entitlement ratios in arcades and bingo halls, accept cashless payments on gaming machines, introduce a legal age limit of 18 for Category D slot style machines, and increase local authority fees. The majority of land-based reforms require legislation to be implemented.

1 July 2024 – Quarterly regulatory returns reporting introduced. This change was originally proposed in the Gambling Commission’s Autumn 2023 Consultation, and was confirmed in its consultation response published on 27 March 2024.

4 July 2024 – UK General Election.

25 July 2024 – The Gambling Commission published the new Gambling Survey of Great Britain (the “GSGB”), collecting data from 20,000 respondents each year and set to establish a new baseline for understanding gambling behaviour in Great Britain. The GSGB publication caused widespread concern in the industry about the accuracy and reliability of the data, that it will be misused and that it will give the new Labour government a reason to depart from what was already proposed in the White Paper, and have a longer term adverse impact on gambling policy.

30 August 2024 – Introduction of new social responsibility code provision (“SRCP”) 3.4.4, which sets out requirements for light-touch financial vulnerability checks at an initial threshold of £500 a month. The pilot for financial risk assessments was also launched and is expected to run until April 2025.

30 August 2024 – Introduction of new age-verification requirements, under SRCP 3.2.1, 3.2.3(8), 3.2.5(7) and 3.2.7(9) of the LCCP. The requirements oblige all land-based gambling licensees to conduct test purchasing and change from “Think 21” to “Think 25”.

27 November 2024 – DCMS published its initial response to the Consultation on the structure, distribution and governance of the statutory levy on gambling operators. The initial response committed to having the levy in place by summer 2025, with 50% going to the NHS, 30% to gambling harm prevention, and 20% to develop bespoke research programmes on gambling.

29 November 2024 – New requirements under licence condition 1.2.1(2) of the LCCP introduced. The requirements extend the ‘specified management offices’ to include the Chair of the Board, money laundering compliance officer and money laundering reporting officer, and confirm that the individual responsible for the overall management and direction of the licensee’s business or affairs is likely to be the CEO, Managing Director or equivalent. Holders of specified management offices are required to hold a personal management licence (“PML”).

5 December 2024 – DCMS announced its Gambling Act Review evaluation plan. DCMS expect the evaluation to be reported in 2026.

17 January 2025 – The revised Remote gambling and software technical standards (RTS) came into force extending the requirements that apply to slots to other online products.

29 January 2025 – The Gambling Commission launched its January 2025 consultation which sets out proposed changes to the Gaming Machine Technical Standards, the Gaming Machine Testing Strategy, and the LCCP. The proposals relate to consolidating and updating the existing 12 gaming machine technical standards into a single standard, and introducing five new standards, a licence condition and social responsibility code provision in respect of safe use of gaming machines. The consultation closes on 20 May 2025 and is a serious cause for concern for the land-based industry. We would encourage clients to respond and provide evidence as to: the disproportionate cost of the proposals and the adverse impact upon business relative to any reduction of gambling harm, whether the proposals are even necessary given existing safer gambling measures in their venues, and the huge impact on the enjoyment of gaming machines by the overwhelming majority of consumers.

30 January 2025 – The Gambling Commission published its online slots stake limit guidance on the Statutory Instrument, which clarifies the stake limits and implementation dates, and provides example scenarios.

4 February 2025 – The Gambling Commission published its response to its Autumn 2023 consultation. Its response confirmed (a) new requirements for customer led tools to give consumers more effective ways to manage their gambling by making it easier to set and maintain deposit limits on their online accounts, (b) the requirement that operators whose customer funds are ‘not protected’ in the event of insolvency must actively remind customers once every six months that their funds are not protected, and (c) the removal of the requirement to make annual financial contributions to a list of research, prevention and treatment organisations to pave the way for the new statutory levy by 31 March 2025.

10 February 2025 – The Gambling Commission published an update on the financial risk assessment pilot, which outlined the findings from Stage 1 of the three-stage pilot, identified the issues relating to data quality and implementation, and explained what can be expected with Stages 2 and 3.

25 February 2025 –Statutory Instrument, The Gambling Act 2005 (Operating Licence Conditions) (Amendment) Regulations 2025, signed into law, adding a new licence condition to all remote casino operating licences which introduces a maximum stake limit for online slots games in Great Britain. The total amount which an individual may stake in relation to any game cycle may not exceed (a) £2, where the individual is less than 25 years old, and (b) £5, where the individual is 25 years old or over.

25 February 2025 –Statutory Instrument, The Levy Regulations, signed into law, requiring all operating licence holders in Great Britain to pay a mandated levy to the Gambling Commission. The Levy Regulations came into force on 6 April 2025.

28 February 2025 – The requirement set out in SRCP 3.4.4(7) of the LCCP for financial vulnerability checks at £500 a month reduced to £150 a month, as set out in SRCP 3.4.4(6).

6 March 2025 – The Gambling Commission launched a supplementary consultation setting out its proposals for clarifying the definition of financial limits in the Remote Gambling and Software Technical Standards, to ensure there is a differentiation between “deposit limits and “loss limits”. The consultation closed on 30 April 2025.

26 March 2025 – The Gambling Commission published a response to its Autumn 2023 consultation. Its response confirmed (a) a ban on operators offering mixed product promotional offers which provide bonuses on the condition the consumer plays different gambling products, such as betting and playing slots, (b) a requirement to cap the wagering requirement of promotional offers to 10, and (c) rewording SRCP 5.1.1 (Rewards and Bonuses) of the LCCP to ensure clarity of the Gambling Commission’s expectations of operators around socially responsible incentives. Requirements to come into force on 19 December 2025.

31 March 2025 – The removal of SRCP 3.1.1(2) of the LCCP requiring licensees to make annual financial contributions to a list of research, prevention and treatment organisations.

6 April 2025 – The Levy Regulations came into force. The first invoices will be issued on 1 September 2025, with payment required on or before 1 October 2025.

7 April 2025 –The Gambling Commission published its statutory levy guidance to accompany the Levy Regulations, including details of who will collect the levy, who must pay the levy, how the levy is calculated, when licensees need to pay, how to pay the levy, and the consequences of not paying the levy.

9 April 2025 – The Statutory Instrument adding a new licence condition to all remote casino operating licences which introduces a maximum stake limit for online slots games in Great Britain came into force.

What can we expect next?

Changes which will be implemented in 2025:

1 May 2025 – New direct marketing requirements come into force.
21 May 2025 – £2 stake limit for online slots for those aged 18-24 years old to come into force.
31 October 2025 – New customer led tools and requirements regarding the protection of customer funds in the event of insolvency, and further updates to RTS in relation to financial limits come into force.
19 December 2025 – New requirements for socially responsible incentives come into force.

Other areas which will likely progress in the next year at varying speeds:

Establishment of the Gambling Ombudsman.
The publication of the Gambling Commission’s response to its December 2023 Consultation, which closed on 15 March 2024, relating to the criteria for imposing a financial penalty and penalty calculation methodology, and changes to financial key event reporting.
Implementation of the new land-based measures as set out in DCMS’s consultation response of 16 May 2024.
Progress with the Criminal Justice Bill in Parliament and extension of the Gambling Commission’s powers to tackle illegal gambling.
DCMS’s consultation on Gambling Commission fees.

The second year of the White Paper saw a number of the proposals “ticked off” with their implementation having now taken place, or lined up to take place soon. The overwhelming list of proposals has shortened, and the gambling industry is now gradually transitioning to the post-White Paper era. We look forward to seeing where things stand by the time of the three-year anniversary.

Please sign up to our blog to receive insight and commentary on the continued journey of the White Paper.

23Apr

Gambling Commission issues industry warning notice on regulatory returns submission

23rd April 2025 Tiffany Babayemi 52

On 17 April 2025, the Gambling Commission issued an industry warning notice to licensees regarding timely submission of regulatory returns. The warning follows a series of fines issued against licensees who have failed to submit a regulatory return by the deadline, and reminds licensees that they face regulatory action if they fail to complete or submit regulatory returns on time.

The industry warning notice notes that since October 2024, more than 10 businesses have been fined up to £750 for not correctly completing and submitting regulatory returns within the required timeframe.

John Pierce, the Gambling Commission’s Director of Enforcement, said:

“Despite early engagement and the issuing of advice notices, further failures to comply with the regulatory returns process were identified in these cases. Operators are expected to understand their reporting obligations and must ensure returns are submitted on time via our online portal.”

“Repeated breaches and persistent non-compliance is likely to result in escalating enforcement action.”

We take this opportunity to remind licensees of the key requirements for regulatory returns.

Requirement of submission

On 1 July 2024, licence condition 15.3.1 of the Licence Conditions Codes of Practice was updated to require all licensees to submit accurate regulatory returns on a quarterly basis, and to align the reporting periods as follows:

Quarter one – 1 April to 30 June
Quarter two – 1 July to 30 September
Quarter three – 1 October to 31 December
Quarter four – 1 January to 31 March.

All returns must be submitted within 28 days of the end of the quarterly period. If a licensee has ceased trading in a licensed activity, or has not yet started to trade but still holds a valid licence at the time a return is due, it must submit a ‘nil’ return. A separate return must be submitted for each licence type.

The next due date

The next quarterly regulatory returns are due by 28 April 2025.

How to submit

Regulatory returns need to be submitted via the eServices digital service on the Gambling Commission’s website.

Late or inaccurate regulatory returns

Under section 342 of the Gambling Act 2005, a licensee commits an offence if it misrepresents or fails to reveal information that it is asked to provide, unless it has a reasonable excuse. The Gambling Commission may prosecute licensees which provide information which is false or deliberately misleading. Where returns are submitted late, are incomplete or inaccurate, the Gambling Commission will contact the licensee. If the licensee does not submit an up-to-date, accurate regulatory return after the Gambling Commission has contacted them, there is a risk that the Gambling Commission will refer the matter to its Enforcement Team.

Next steps

We encourage licensees to set reminders to submit their regulatory returns on time, and ensure the accuracy of their returns. Further information on regulatory returns can be found in the Gambling Commission’s regulatory returns guidance and published updates on the changes to regulatory returns effective 1 July 2024.

Please get in contact with us if you have any questions about your regulatory returns or if you would like assistance with any compliance or enforcement matters.

11Apr

White Paper Series: Gambling Commission publishes statutory levy guidance

11th April 2025 Harris Hagan 55

On 7 April 2025, the Gambling Commission published its guidance on the statutory levy and how licensees can prepare for it. The Gambling Levy Regulations 2025 (the “Levy Regulations”) took effect on 6 April 2025 and introduced a mandated levy on all operating licence holders in Great Britain to fund research, prevention and treatment of gambling harms. Please refer to our previous blog, White Paper Series: Statutory Instrument published for statutory levy, for further details of the Levy Regulations.

The Gambling Commission’s guidance sets out snapshot information on the statutory levy, including:

Who will collect the statutory levy

The Gambling Commission collects the levy on behalf of the Department for Culture, Media and Sport.

Who must pay the statutory levy

The levy will be charged to all gambling licensees. However, licensees are not required to pay the levy where the amount of that levy is £10 or less (for a given period).

How the statutory levy is calculated

The levy will be charged at a set rate for all Gambling Commission licence holders, ranging from 0.1% – 1.1%.

The basis and rate to be paid will vary depending on the licensed product (see the statutory levy rates by licence product table). The basis will be from the following list, as appropriate:

Gross Gambling Yield
proceeds retained after good causes and prizes paid out
gross value of sales or any amounts that will otherwise accrue to the licensee in connection with activities authorised by the licence.

The calculation for the amount owed under the statutory levy is based on the data that licensees provide via Regulatory Returns. The guidance reminds licensees of their obligation to provide ‘true and correct’ data, and any incorrect data submitted would impact the calculation of the amount owed by levy.

When licensees need to pay

Licensees must not pay the statutory levy until they receive their invoice.

The first invoices will be issued on 1 September 2025, with payment required on or before 1 October 2025.

The levy will then be invoiced annually on 1 September and will cover the period of 12 months beginning with 1 April.  

How to pay the statutory levy

Invoices will be issued to licensees by email (not via eServices) and payment can be made using GovPay or Bank Transfer.

Statutory levy payments must be paid in full by 1 October, and in line with the details on the invoice. Full details of how to make the payments will be provided by the Gambling Commission before September 2025.

Consequences of not paying the statutory levy

Payment of the statutory levy is a licence requirement, and therefore non-payment, or late payment, of the levy by the licensee will result in revocation of the operating licence. 

Removal of voluntary RET Contributions

Following the announcement of the introduction of the statutory levy, the Gambling Commission responded to the consultation proposing to amend the Licence Conditions and Codes of Practice to remove the requirement for licensees to make a voluntary annual financial contribution to one or more organisation.

Accordingly, as of 31 March 2025, licensees are no longer required to make annual financial contributions to research, prevention and treatment due to the levy’s introduction.

Next steps

Licensees can prepare for the statutory levy payment by ensuring:

regulatory returns data is submitted correctly and on time,
the Gambling Commission holds the correct contact details (i.e. email address) for your organisation, and
payment is only made once an invoice has been received.

Please get in touch with us if you have any questions about the Levy Regulations or the Gambling Commission’s guidance on the statutory levy.

10Apr

A spotlight on the statutory levy: Government Committee examines gambling harm evidence

10th April 2025 Tiffany Babayemi 67

On Wednesday 2^nd April 2025, the Health and Social Care Select Committee examined the current gambling landscape and the potential for harms caused by developments in gambling products in a one-off oral evidence session.

The Government has noted that it wants to facilitate a “cultural shift” in the understanding of gambling-related harms to reduce stigma associated with getting help. During the session, MPs discussed what is needed to develop an effective public health response to gambling-related harms, and the Government’s role in leading and delivering this work. As part of their questioning, the MPs asked witnesses’ views on what role public health teams need to have within wider local authority services to reduce potential for gambling-related harms, and whether they think the current rules sufficiently safeguard children and vulnerable people from gambling-related harms.

In the session, a key topic of discussion was how the introduction of the statutory levy could have a notable and positive impact on reducing gambling harms. The statutory levy, which was announced by Government in November 2024, and took effect through The Gambling Levy Regulations 2025 on 6 April 2025, provides, for the first time, a dedicated statutory investment to fund research, education and treatment of gambling harms. Since its introduction on 6 April 2025, the Gambling Commission is now responsible for collecting and administering the new levy, under the strategic direction of the Government.

During the session, MPs posed questions on the commissioning of effective treatment and prevention services in the context of the statutory levy and the role of the Gambling Commission in regulating the industry.

Some noteworthy comments from the session:

Professor Sam Chamberlain, Professor of Psychiatry, University of Southampton and Director of the Southern Gambling Treatment Clinic:

“We have an opportunity with the levy— provided that the funds are administered in a way that is ringfenced and protected from conflicts of interest and industry—to really make a difference by doing some good-quality research and rolling out public health interventions that actually help.”

Professor Heather Wardle, Co-Chair Lancet Public Health Commission on Gambling and Professor of Gambling Research and Policy, University of Glasgow:

“We do not have a nationalised monitoring system for harms. We do not understand how many people who are interacting with the criminal justice system or the NHS are experiencing harms, because we do not have that infrastructure available to us. Again, with the levy, there is an opportunity to develop that. I absolutely think that that is where we need to be investing some of our resources, because once you have that infrastructure, you have the insight. It provides the bedrock of excellent research and enables you to go forward.”

Andrew Vereker, Deputy Director for Tobacco, Alcohol and Gambling, Office for Health Improvement and Disparities:

“Through our health mission, we are committed to shortening the time spent in ill health by preventing harms before they occur. In that context, I think the levy is a real opportunity, as the previous panel said, to improve treatment, to enable high-quality research and to support effective prevention activity.”

Tim Miller, Executive Director of Research and Policy, Gambling Commission:

“The Gambling Act is clear that levy funding has to be used for purposes in connection with the licensing objectives in the Act.”

In a statement made by Stephanie Peacock, Minister for Sport, Media, Civil Society and Youth, it was clarified that 30% of the levy funding will be allocated to the prevention of gambling harm in Great Britain, which is up to £30 million each year, alongside the significant funding allocated for research and treatment.

If you wish to find out more about what was discussed in the session, we invite you to watch the session or read the transcript.

Please get in touch with us if you have any questions about the oral evidence session or the statutory levy.

04Apr

Gambling Commission’s guidance update on casinos providing MSB services

4th April 2025 Harris Hagan 75

On 3 April 2025, the Gambling Commission provided a guidance update in respect of casinos that also provide money service business (“MSB”) services. The Gambling Commission explains in the update that “casinos offering services to customers including acting as a cheque casher or currency exchange, accepting winners’ cheques and foreign currency, or transmitting money are considered to be providing MSB services under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017” (the “MLR 2017”).

Under the MLR 2017, the Gambling Commission is the supervisory authority for casinos in the UK and HM Revenue and Customs (“HMRC”) is the supervisory authority for MSBs. Pursuant to Regulation 7(2) of the MLR 2017, where casino businesses also carry out incidental MSB activities, the Gambling Commission and HMRC have agreed that the supervisory body is the Gambling Commission.

The MLR 2017 requires HMRC to maintain a register of MSBs and therefore all casino businesses that also provide MSB services have to register.

The Gambling Commission points out that it intends to enter into an agreement with HMRC, under which the Gambling Commission will provide the necessary registration details directly to HMRC, so that affected licensees will not have to apply directly to HMRC to be on the register. Specific details will be shared by the Gambling Commission with HMRC to facilitate registration.

The Gambling Commission emphasises the importance of licensees’ compliance with their legal obligations “because it contributes to tackling the serious economic and social harm from organised crime. It also contributes to reducing the threat from terrorism in the UK and around the globe”.

It also highlights HMRC’s current guidance on meeting the requirements: Money service business guidance for money laundering supervision and Understanding risks and taking action for money service businesses.

The Gambling Commission will be providing more information on the agreement with HMRC in due course.

Please get in touch with us if you have any questions or require any assistance.

26Mar

White Paper Series: Gambling Commission announces new rules increasing safer and simpler gambling promotions for consumers

26th March 2025 Harris Hagan 90

On 26 March 2025, the Gambling Commission announced changes aimed at increasing the safety and simplicity of consumer promotional offers. The changes include a mixed product promotion ban and limiting the bonus wagering requirements to 10. Changes will also be made to the Gambling Commission’s Licence Conditions and Codes of Practice (“LCCP”) regarding Social Responsibility Code 5.1.1 (Rewards and Bonuses) to increase clarity as to the Gambling Commission’s current expectations of operators. These changes are part of the consultation response to the Autumn 2023 Consultation and are in line with the commitments within the White Paper.

What are the changes to be expected?

Mixed product promotion ban

The new rules ban operators from offering mixed product promotional offers which provide bonuses on the condition the consumer plays different gambling products, such as betting and playing slots. The Gambling Commission highlighted that this ban aims to reduce harm and boost fairness and openness, due to evidence showing consumers are more at risk of harm when they gamble on multiple products rather than a single product. There is also the risk that mixed product promotions confuse consumers because of complex terms and conditions.

In the consultation response, the Gambling Commission clarified that this ban applies to the mixing of products within an individual incentive or promotional offer, where terms are linked and shared.

From 19 December 2025, all gambling operators, except holders of gaming machine technical and software licences, will be banned from offering such mixed product promotional offers.

Bonus wagering requirements limited to 10

This new rule will require operators to cap the wagering requirement of promotional offers to 10, in order to decrease the likelihood of harm, reduce complexity, and improve transparency, while maintaining consumer choice. The Gambling Commission highlighted that some promotional offers provide bonus funds to consumers on the condition the consumer re-stakes any winnings multiple times before being allowed to withdraw winnings from the bonus. For example, a £10 bonus with 50 times wagering requirement requires the consumer to play through £500 before the winnings can be withdrawn. As such, high wagering requirements could confuse consumers and lead them to gamble for longer, and faster, than they are used to.

From 19 December 2025, all gambling operators except holders of gaming machine technical and software licences will be required to cap the wagering requirement to 10.

Rewording the Rewards and Bonuses section of the LCCP

To ensure increased clarity of the Gambling Commission’s current expectations of operators, the structure and wording of LCCP Social Responsibility Code 5.1.1 (Rewards and Bonuses) will be amended.

From 19 December 2025, SRCP 5.1.1 will read:

The following applies where a licensee makes available to any customer, or potential customer, an incentive or reward scheme or other arrangement under which a customer may receive money, goods, services or any other advantage (including the discharge in whole or in part of any liability of his) (‘the benefit’).

Licensees must:
1. Set out terms and conditions, in relation to an incentive, which are clear, transparent, and fair and readily accessible to any customer or potential customer to whom it is offered.

Licensees must not:
1. Apply wagering requirements, which requires a customer to play through bonus funds, over a maximum of 10 times. A wagering requirement is a where a customer is required to make wagers totalling a particular value for funds to become withdrawable.
2. Include more than one type of gambling product (betting, casino, bingo, and lottery) within an incentive.
3. Alter or increase the receipt or the value, or amount of the incentive if the qualifying activity or spend is reached within a shorter time than the whole period over which the benefit is offered.
4. Construct incentives where, if the benefit comprises of free or subsidised travel or accommodation which encourages the customer’s attendance at a particular licensed premises, it is offered on terms that directly relate to the level of the customer’s prospective gambling.

If a licensee makes available an incentive or reward scheme for customers, designated by the licensee as ‘high value, ‘VIP’ or equivalent, it must be offered in a manner which is consistent with the licensing objectives.

Licensees must take into account the Commission’s guidance on high value customer incentives.

Tim Miller, Commission Executive Director for research and policy, said:

“These changes will better protect consumers from gambling harm and give consumers much better clarity on, and certainty of, offers before they decide to sign up.”

Next steps

The changes to mixed product promotions, bonus wagering requirements and SRCP 5.1.1 of the LCCP will come into force on 19 December 2025.

Please get in touch with us if you have any questions about these upcoming changes.

27Feb

White Paper Series: Statutory Instrument published for online slot stake limits

27th February 2025 Harris Hagan 104

Following the final Parliamentary procedures, The Gambling Act 20 05 (Operating Licence Conditions) (Amendment) Regulations 2025 was signed into law on 25 February 2025 as a statutory instrument (“SI”).

As a reminder, the SI will have the effect of adding a new licence condition to all remote casino operating licences to introduce a maximum stake limit for online slots games in Great Britain.

Operators will have a transitional period of 6 weeks from the day after the SI was made (until 9 April 2025) to implement the £5 limit per spin for adults aged 25 and over (which will temporarily apply to all adults), and a further 6 weeks (until 21 May 2025) to implement the £2 limit per spin for 18 to 24 year olds.

For further details of the SI and the Gambling Commission’s guidance, see our previous blog: White Paper Series: Gambling Commission publishes online slots stake limit guidance

Please get in touch with us if you have any questions about the SI or the related Gambling Commission guidance.

Gambling Regulation