The Gambling Commission has announced that funds from regulatory settlements will now be directed into the government’s consolidated fund. This shift allows the government to determine how the funds will be allocated, potentially towards addressing gambling-related harms or other uses.
This decision was disclosed in an update released on Wednesday and comes after a public consultation where various stakeholders expressed concerns regarding the potential diversion of funds from the gambling ecosystem. Previously, these settlements funded GambleAware projects focused on research and support for problem gambling, but the charity ceased operations in March following the introduction of the Statutory Levy.
The Statutory Levy mandates that industry contributions for gambling-related harm research and preventative measures be directed to the Office for Health Improvement and Disparities (OHID).
During the consultation, which concluded in April, the commission sought feedback on whether regulatory settlement funds should be deposited in the consolidated fund. Feedback included 28 responses from operators, trade organizations, gambling charities, and members of the public.
Among the responses, half of the participants disagreed with the Gambling Commission’s proposal, expressing concern that diverting funds would diminish their deterrent effect within the gambling sector. The commission noted in its consultation review that some respondents believed regulatory settlements should be incorporated into the overall levy pool and managed by the levy commissioning bodies. Others called for a more flexible funding model that could be more accessible for smaller non-profit organizations lacking direct funding from the levy system.
The regulator acknowledged that its decision to transfer funds to the consolidated fund would likely be unpopular, particularly for those who had previously benefited from settlement funding. However, the commission defended its position, emphasizing that without a centralized body capable of receiving and managing these funds effectively, directing the settlements to the consolidated fund remains the only viable option available.
The Gambling Commission also expressed confidence that the funding generated from the Statutory Levy would be adequate to ensure a sustainable and equitable financing framework for research, prevention, and treatment related to gambling harm.
Typically, funds from the consolidated fund support public spending, including the operations of government departments and day-to-day public services, as well as servicing national debt.
Stakeholders in the gambling sector have criticized the OHID for its lack of planning surrounding the distribution of levy funds, emphasizing the importance of ensuring that funding supports organizations that are independent from the industry. This concern was heightened after researchers previously indicated that the industry had exerted influence over the allocation of research funding prior to the Statutory Levy's implementation.
In December, the Department for Digital, Culture, Media and Sport (DCMS) disclosed that 50% of levy funds would be allocated for treatment, while 30% would focus on prevention, and 20% on research.
