UK Gambling Commission to Redirect Regulatory Settlements to Consolidated Fund

Gambling Commission to Direct Regulatory Settlements to UK Consolidated Fund – Change Ends Direct Allocation to Gambling Harm Projects

Key Takeaways

• The UK Gambling Commission will direct future regulatory settlement funds to the government’s Consolidated Fund.
• Previously, settlement payments supported gambling harm research and treatment projects through GambleAware.
• Half of consultation respondents opposed the change, citing concerns about funds leaving the gambling ecosystem.
• The Commission said limited alternatives and the absence of a central commissioning body led to the decision.
• The Statutory Levy now funds research, prevention and treatment through the Office for Health Improvement and Disparities.

Regulator Confirms Settlement Funds Will Go to the Consolidated Fund

The UK Gambling Commission has confirmed that future regulatory settlement payments will be transferred to the government’s Consolidated Fund. The decision follows a public consultation that closed in April and included responses from operators, trade bodies, charities focused on gambling harms and members of the public.

Regulatory settlements are financial payments agreed between the Commission and licence holders, typically in cases involving compliance failures. In the past, these funds were directed to projects overseen by GambleAware, a charity that supported research, prevention and treatment initiatives related to problem gambling.

GambleAware ceased trading in March after the introduction of the Statutory Levy. Under the new levy system, mandatory industry contributions are collected and allocated by the government’s Office for Health Improvement and Disparities, known as OHID.

With GambleAware no longer operating and no alternative central commissioning body in place to coordinate settlement spending, the Commission stated that transferring funds to the Consolidated Fund was the only viable option available.

Consultation Responses Highlight Concerns Over Use of Funds

The Commission received 28 responses to its consultation. According to its published review, half of respondents disagreed with the proposal to route settlement funds to the Consolidated Fund.

Those opposing the move argued that the funds would effectively leave the gambling ecosystem and could be used for broader government priorities unrelated to gambling harms. Some respondents expressed concern that removing the direct link between regulatory breaches and harm reduction projects could weaken the deterrent effect of settlements.

Others suggested that settlement payments should be added to the overall levy pool and distributed by the bodies responsible for commissioning under the Statutory Levy framework. A separate group supported a more flexible system that would allow smaller third sector organisations, which may not receive direct levy funding, to access settlement money.

The Commission acknowledged that its decision would be unpopular among some stakeholders, particularly organisations that had previously received funding from regulatory settlements. However, it maintained that in the absence of a coordinated mechanism for distributing the funds, directing them to the Consolidated Fund remains the only practical course of action.

How the Statutory Levy Replaces the Previous Funding Model

The introduction of the Statutory Levy marked a structural shift in how gambling harm research, prevention and treatment are financed in Great Britain. Instead of voluntary or settlement based contributions, operators are now required to make mandatory payments.

Under the current framework, OHID receives and distributes levy funding. In December, the Department for Digital, Culture, Media and Sport reported that 50 percent of levy funds would be allocated to treatment services, 30 percent to prevention and 20 percent to research.

The move toward a statutory system followed parliamentary scrutiny. During a health committee session in April 2025, researchers raised concerns that the gambling industry had influenced how and where previous funding was spent. These concerns were expressed before the levy was implemented later that year.

Since the levy came into force, some stakeholders in the sector have criticised OHID for what they describe as a lack of detailed planning around distribution. There has also been emphasis on directing funding to entities that are not affiliated with the gambling industry.

Against this backdrop, the Commission stated that it believes the levy will provide a sustainable and equitable funding system for addressing gambling related harm. In its view, the statutory model reduces the need to rely on regulatory settlements as a supplementary funding source.

What the Consolidated Fund Means for Settlement Money

The Consolidated Fund is the UK government’s main bank account. Money paid into it is typically used for general public expenditure. This includes day to day public services, departmental operations and servicing of the national debt.

Once regulatory settlement payments enter the Consolidated Fund, their allocation is determined through standard government budgeting processes rather than being ring fenced for gambling related initiatives. The Commission confirmed that the administration may decide whether to use the funding for tackling gambling harms or for other public purposes.

For operators, the financial obligation arising from a regulatory settlement remains unchanged. The modification concerns only the destination and subsequent allocation of the funds.

Our Assessment

The Gambling Commission’s decision formalises a shift in how regulatory settlement funds are handled following the closure of GambleAware and the introduction of the Statutory Levy. While half of consultation respondents opposed transferring the money to the Consolidated Fund, the regulator concluded that no coordinated alternative mechanism currently exists. Going forward, funding for research, prevention and treatment of gambling related harm will primarily depend on the statutory levy system administered by OHID, while settlement payments will enter general government revenues.