The Gambling Commission has announced that funds from regulatory settlements will now be directed into the government’s consolidated fund. This allows the government to determine whether these funds will be allocated to address gambling-related harm or if they will be used for other initiatives.
This decision was made public in an update released on Wednesday, following a consultation process where stakeholders expressed concerns about the potential diversion of funds from the gambling sector. Before this development, regulatory settlements negotiated between license holders and the commission were used to fund projects by GambleAware, which aimed at researching problem gambling. However, GambleAware stopped operations in March after the establishment of the Statutory Levy.
Under the new levy framework, the government's Office for Health Improvement and Disparities (OHID) is now responsible for collecting mandatory industry contributions intended for research and prevention of gambling-related harms.
In the consultation, which concluded in April, the commission solicited views on whether settlement funds should be channeled into the government’s consolidated fund. The consultation garnered 28 responses from a diverse range of stakeholders, including industry operators, trade bodies, gambling charities, and the public.
Responses indicated that approximately half of the participants disagreed with the Gambling Commission’s proposal. They raised concerns that such a measure would lead to funds being removed from the gambling ecosystem, where they could potentially address gambling-related issues. The Gambling Commission’s consultation review noted that some stakeholders felt that regulatory settlement funds should continue to contribute to the overall levy pool, which is managed by commissioning bodies. Others advocated for a more flexible funding approach that could benefit smaller third sector organizations not directly receiving funding from the levy.
The commission acknowledged that its choice to redirect funds to the consolidated fund would likely be viewed unfavorably by respondents, especially those who had previously received funding from these settlements. Despite the general opposition to the proposal, the commission maintained that given the lack of viable alternatives for managing regulatory settlement funds, transferring them to the consolidated fund remains their best option.
The commission is confident that the funding generated from the Statutory Levy will suffice to create a sustainable and fair system for the research, prevention, and treatment of gambling-related harm.
Funds from the consolidated fund typically support various public expenditures, including the operations of government departments, public services, and servicing national debt.
Criticism of the OHID has emerged regarding its planning for the distribution of levy funds, with many emphasizing that financial support should primarily benefit entities independent of the gambling industry. Concerns have been raised about the sector's past influence on how funding was allocated, particularly during a parliamentary health committee session in April 2025, prior to the Statutory Levy’s implementation.
The Department for Digital, Culture, Media and Sport (DCMS) indicated in December that around 50% of levy funds would be directed to treatment efforts, 30% towards prevention initiatives, and 20% for research activities.
