UK Government to Receive Funds from Gambling Regulatory Settlements

Funds from regulatory settlements with British regulator the Gambling Commission will be redirected to the government’s Consolidated Fund, with the change to take place with immediate effect.

This follows an eight-week consultation the Commission held on the topic, and the Commission’s decision means that going forward, the UK government will be responsible for making decisions on how to use the funds generated from settlements, which can be used for tackling gambling-related harm or for other purposes.

The consultation received 28 responses. Around a third of respondents, who were mostly from gambling businesses, and a trade association, agreed or strongly agreed with the proposal. Just over half of respondents, who were mostly from charity and third sector organisations, members of the public and those affected by gambling harm, either disagreed or strongly disagreed with the proposal.

Wish to separate from the levy

A part of the reason for a section of respondents supporting the proposal was that it was seen as the only viable option without a central body or bodies who could receive and spend regulatory settlement funds being in place. Those parties were also concerned about the idea of directing settlement funds towards gambling harms programs now that there is a statutory levy in place.

The statutory levy came into effect in April 2025, as one of the terms from the 2023 Gambling White Paper, requiring all licensed operators to pay a percentage of their gross gambling yield to contribute towards efforts to treat and prevent gambling harm. The rate ranges from 0.1% to 1.1%, dependent on the specific gambling-related activity.

Supporters of the Commission’s proposal felt sending regulatory settlement funds to programs alongside the contributions from the levy would risk inconsistency, duplication, and misalignment with centrally agreed commissioning priorities.

Those who supported the proposal also believed the irregular pattern of settlement funds being paid into gambling harms programs would make them unsuitable for integration into levy system structures.

There was however, still some support for government choosing to spend any regulatory settlement funds on gambling prevention when this is possible.

Funds leaving the ecosystem

Opponents of the proposal were concerned funds would be leaving the gambling ecosystem and would be used by the government for non-gambling priorities. There was a belief that without the connection between settlements and harm preventions, there would not be a strong enough deterrent for operators and suppliers.

Some alternative proposals were put forward by opponents to the proposal, including a more flexible approach where funds from regulatory settlements could be sent to smaller, third sector organisations who may not receive any direct funding from the levy system. Some respondents were also concerned about the lack of clarity on what funds going into the Consolidated Fund will be spent on.

Explaining its decision to go forward with the proposal, the Commission said:

“Despite the lack of overall support for the proposal, given the limited alternative options available to us, we still believe that in the absence of a central commissioning body or bodies that can receive and spend regulatory settlement funds in a coordinated way, that sending regulatory settlements to the Consolidated Fund in future remains our only viable option.”

Ironic timing

The announcement comes at a timely moment, with the Commission having recently agreed a £4.75 million settlement with live casino supplier Evolution.

Evolution’s game content was found to have been offered in the UK without a license illegally via two operators across six websites.