Gambling Commission to Direct Regulatory Settlements to Consolidated Fund

The Gambling Commission has announced that funds obtained from regulatory settlements with operators will be directed to the Consolidated Fund. The decision follows a consultation launched in February which sought views on the future destination of these financial penalties.

This policy change is being made in the context of the government's forthcoming statutory levy on the gambling industry. The Commission's decision is intended to align with the new funding structures that the levy will introduce for research, prevention, and treatment of gambling-related harm.

Avoiding a 'Dual System'

According to the regulator, a key reason for the change is to prevent the emergence of a 'dual system' for funding socially responsible initiatives. By channelling settlement funds into the government's central coffers, the Commission seeks to avoid any duplication of work that will be commissioned and paid for by the new statutory levy.

The Consolidated Fund is the primary bank account of the UK government, receiving the proceeds of taxation and various other government receipts. Directing settlement money to this fund means the funds will contribute to general public expenditure rather than being specifically earmarked for gambling-related projects, which will now be the domain of the levy.

The Commission's decision takes into account the new commissioning structures that are expected to be established as part of the levy's implementation. This move represents a significant shift from the previous arrangement where settlement funds were often directed towards approved socially responsible causes and projects aimed at advancing the National Strategy to Reduce Gambling Harms.

Formal Policy Amendment

The change has been formalised in the Commission's official response document, which is titled 'Amending section 2.39 in the Statement of Principles for Determining Financial Penalties'. This amendment to its core principles for financial penalties solidifies the new policy, creating a clear framework for the allocation of settlement funds as the industry transitions towards the new levy-based funding model.