Gambling Commission confirms where regulatory settlements will be spent

The Gambling Commission has confirmed that future regulatory settlement payments will be sent directly to the government’s Consolidated Fund. This is despite opposition from half of those responding to its consultation.

The change means money received through settlements with gambling operators will no longer automatically remain within the gambling harm funding system. Instead, the government will determine how the funds are used. This could include spending unrelated to gambling.

The regulator said the decision reflects the introduction of the statutory gambling levy and will prevent duplication between the two funding systems.

Half of respondents opposed Commission proposal

The Gambling Commission consultation received 28 responses from gambling operators, trade associations, charities and members of the public.

Half disagreed with the proposal to place settlement payments into the Consolidated Fund. A common concern was that money originating from regulatory failings within the gambling sector could subsequently be spent on unrelated government priorities.

Some respondents argued that the payments should be added to the statutory levy pot and distributed by its commissioning bodies. Others wanted a more flexible system through which smaller third-sector organisations could access funding.

There were also concerns that separating settlement payments from gambling harm initiatives could weaken their deterrent effect.

“Half of the consultation respondents opposed sending regulatory settlement payments to the government’s Consolidated Fund.”

The Commission rejected this argument, stating that settlements would continue to deter misconduct through their financial value, associated operator requirements and public disclosure.

Consolidated Fund described as only viable option

The regulator acknowledged that its final decision would be unpopular, particularly among organisations that had previously received funding from regulatory settlements.

However, it concluded that the Consolidated Fund remained the only workable destination in the absence of a central body capable of receiving and distributing the payments.

The  Consolidated Fund receives revenue from taxation and other government income. It is used to finance public expenditure. This includes departmental spending, public services and debt-related costs.

Although settlement money will not be ring-fenced, the government could still choose to direct some of it towards tackling gambling-related harm.

The Commission said incorporating unpredictable settlement payments into the statutory levy system could create funding volatility and additional complexity for the levy’s commissioning bodies.

Statutory levy replaces previous funding structure

Before the statutory levy was introduced, regulatory settlements commonly funded projects delivered by GambleAware and other organisations working across research, prevention and treatment.

GambleAware ceased operating in March 2026 as responsibility for funding these areas transferred to the new statutory system.

Under the statutory gambling levy, licensed operators make mandatory contributions based on their gambling yield. The levy is expected to provide a more consistent and independently commissioned source of funding than the previous voluntary model.

Half of the money raised is allocated to treatment services, while 30% supports prevention and 20% is directed towards research.

The Commission said these allocations should be sufficient to create a sustainable system without additional, irregular payments from regulatory settlements. The revised approach also brings settlements into line with formal financial penalties, which are already paid into the Consolidated Fund.