The Gambling Commission has finalized its decision regarding the allocation of funds from regulatory settlements, confirming that these funds will be directed to the government’s consolidated fund. This move allows the government to determine whether to utilize these finances for addressing gambling-related harm or other governmental priorities.
This announcement came on Wednesday, following a public consultation that highlighted stakeholder concerns about the potential allocation of these funds beyond the gambling sector. Previously, these settlements between license holders and the Gambling Commission contributed to GambleAware projects aimed at researching problem gambling. However, following the introduction of the Statutory Levy, GambleAware ceased its operations in March.
Under the Statutory Levy, mandatory financial contributions from the industry for gambling-related harm research and prevention are funneled to the government’s Office for Health Improvement and Disparities (OHID).
During the consultation, which concluded in April, the Gambling Commission solicited input on whether regulatory settlement funds should be channeled into the consolidated fund. This process attracted 28 responses from a range of stakeholders, including operators, trade bodies, charities focused on gambling harms, and members of the general public.
Half of the respondents expressed disagreement with the Gambling Commission’s proposal, arguing that this decision would transfer funds out of the gambling ecosystem and risk their allocation toward non-gambling-related governmental initiatives. Respondents expressed concern that without a connection to the industry, regulatory settlements would lose their deterrent effect.
The Gambling Commission acknowledged that its decision would be “unpopular,” especially among those who had previously benefitted from such funding. Despite the lack of broad support for the proposal, the Commission asserted that due to the absence of a centralized body capable of managing and allocating these funds in a coordinated manner, the consolidated fund remains the only feasible option.
It further stated that the revenue generated from the Statutory Levy is expected to provide a sustainable and equitable funding model dedicated to research, prevention, and treatment of gambling-related harm.
Typically, funds from the consolidated fund are utilized for public expenditures, including the support of public services, the operation of government departments, and servicing national debt.
Critics in the sector have raised concerns about the OHID’s insufficient planning regarding the distribution of levy funds, emphasizing the importance of directing these resources towards entities independent of the gambling industry. This follows earlier apprehensive notes from researchers who suggested that the gambling sector had previously influenced how funding was allocated before the Statutory Levy was enacted later that year.
In December, the Department for Digital, Culture, Media and Sport (DCMS) indicated that approximately 50% of levy funds would be earmarked for treatment services, 30% for prevention, and 20% for research activities.
