The Gambling Commission has announced that funds resulting from regulatory settlements will now be directed into the government’s consolidated fund. This arrangement allows the government to decide how the funds are allocated, including whether they will be invested in efforts to combat gambling-related harm or used for other initiatives.
This final decision was outlined in an update released on Wednesday, which followed a public consultation during which stakeholders expressed concerns about the potential misuse of these funds outside of the gambling sector.
Previously, financial settlements between license holders and the Gambling Commission were channeled into GambleAware, an organization dedicated to researching problem gambling. However, GambleAware ceased operations in March, coinciding with the introduction of the Statutory Levy.
The Statutory Levy mandates that industry contributions toward research and prevention of gambling-related harm are now collected by the government’s Office for Health Improvement and Disparities (OHID).
In its consultation, which concluded in April, the Gambling Commission sought input from stakeholders regarding the new direction of settlement funds. The consultation garnered 28 responses, representing a diverse spectrum of voices from operators, trade associations, gambling harm charities, and the public.
Half of the respondents opposed the Gambling Commission’s proposal, arguing that diverting these funds from the gambling ecosystem would lead to a lack of accountability and that the funds could be misappropriated for non-gambling-related purposes. "There was a belief that without this connection, regulatory settlements would no longer act as a deterrent," the Commission noted in its consultation report.
Some participants suggested that the regulatory settlements should continue to contribute to the overall levy pool to be managed by levy commissioning bodies. Others advocated for a more flexible model that would facilitate access to funds for smaller third sector organizations that might not benefit directly from the levy.
The Commission acknowledged that its decision might be met with disapproval from stakeholders who had previously received regulatory settlement funding. Despite this, they expressed that sending regulatory settlements to the Consolidated Fund remains the most feasible option given the absence of a central body to manage these funds effectively.
The Commission further asserted that the resources allocated from the Statutory Levy should be adequate to foster a sustainable funding model for the research, prevention, and treatment of gambling-related harm.
Typically, funds from the Consolidated Fund are utilized for public expenditure, which can include day-to-day services, departmental operations, and managing national debts.
In the industry, there has been notable criticism regarding the lack of strategy from OHID for distributing levy funds. Many have raised concerns over ensuring that the allocations prioritize entities outside the gambling industry. This scrutiny follows warnings from researchers during a parliamentary health committee session in April 2025, where they reiterated doubts about potential industry influences on research funded before the implementation of the Statutory Levy.
According to a report by the Department for Digital, Culture, Media & Sport (DCMS) in December, it was outlined that 50% of levy funds would be directed towards treatment initiatives, 30% towards prevention, and 20% for research efforts.
