The Gambling Commission has announced that funds resulting from regulatory settlements will now be directed into the government's consolidated fund. This development grants the government the authority to choose whether to allocate these resources toward addressing gambling-related harms or to other initiatives.
This decision, outlined in an update on Wednesday, follows a public consultation that raised stakeholder concerns regarding the potential diversion of funds from the gambling sector.
Previously, funds arising from settlements between license holders and the commission were designated for GambleAware projects focused on research related to problem gambling. However, GambleAware halted its operations in March due to the implementation of the Statutory Levy.
The levy mandates that industry funding for gambling harm research and prevention be funneled to the government's Office for Health Improvement and Disparities (OHID).
From April, the commission sought input on whether settlement payments should indeed be allocated to the consolidated fund. They received a total of 28 responses from various stakeholders, including operators, trade bodies, charities addressing gambling harms, and the public.
Half of the respondents expressed disagreement with the Gambling Commission's proposition, arguing that this approach could result in funds exiting the gambling ecosystem and being utilized for non-gambling related government priorities.
The commission documented opinions gathered during the consultation, noting that some participants were concerned that losing the link between regulatory settlements and the gambling sector would diminish their deterrent effect. Some suggested that settlement funds should continue to add to the existing levy pool, while others advocated for a more flexible strategy that would benefit smaller organizations lacking direct access to levy resources.
The regulator accepted that routing funds to the consolidated fund might face disapproval from some stakeholders, especially those who have previously benefitted from regulatory settlements.
Despite the opposition, the commission defended its decision by stating that, given the absence of a centralized body capable of managing and allocating the regulatory settlement funds, the consolidated fund route remains the only viable solution.
Moreover, the commission is confident that funds generated through the Statutory Levy will adequately support a sustainable funding model for gambling-related research, prevention, and treatment efforts.
Typically, money from the consolidated fund is channeled into public expenditures, covering daily public services, operations of government departments, and servicing national debt.
Criticism has surfaced regarding the OHID's approach to organizing the distribution of levy funds. Concerns have surfaced about prioritizing funding for organizations without ties to the gambling sector. This follows previous disclosures from researchers during a parliamentary health committee session in April 2025 that suggested the industry influenced past funding allocations prior to the levy’s enforcement.
In December, the DCMS revealed projections indicating that approximately 50% of levy funds would target treatment, 30% for prevention, and 20% for research.
