The UK Gambling Commission has confirmed that future regulatory settlements agreed through enforcement cases will be paid directly into the government’s Consolidated Fund, aligning the process with existing rules governing financial penalties under the Gambling Act 2005.
The decision follows a consultation held between February and April 2026 that examined whether settlement payments should continue supporting gambling-related initiatives or instead follow the same route as statutory financial penalties. The change takes effect immediately and applies to regulatory settlements finalized from this point onward that include payments made instead of financial penalties.
Consultation Produced Divided Views
The Commission received 28 responses. Gambling operators and a trade association largely supported the proposal, while most charities, third-sector organizations, members of the public and people affected by gambling harm opposed it. The remaining respondents were neutral.
Supporters argued that the Consolidated Fund was the most practical destination because no central organization exists to receive and distribute settlement money. They also said the unpredictable timing and value of settlements make them unsuitable for inclusion in the statutory gambling levy, which depends on stable funding for research, prevention and treatment.
Those opposing the proposal argued that settlement payments should remain within the UK gambling sector rather than entering government accounts, where they could fund unrelated priorities. Some respondents believed the payments should instead be added to the statutory levy or distributed through levy commissioning bodies, while others favored a more flexible model that could support smaller third-sector organizations.
Commission Explains Its Decision
After reviewing consultation responses and consulting the Department for Culture, Media and Sport and levy commissioning bodies, the Commission decided to proceed with the amendment.
It concluded that adding settlement payments to the levy would create unnecessary complexity because enforcement payments are irregular and difficult to predict. The regulator also said existing levy funding should already provide sufficient long-term support for research, prevention and treatment.
Addressing concerns that the change could weaken enforcement, the Commission said deterrence depends on the overall regulatory outcome rather than where settlement funds are sent.
“We acknowledge that our decision to send future regulatory settlements to the Consolidated Fund will be unpopular with some respondents, particularly those who have received regulatory settlement funding in the past,” the regulator said.
“However, 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.”
Supporters also pointed to the inconsistent nature of enforcement payments. This year, the Commission issued financial penalties against several companies, including Evolution, illustrating how settlement amounts and timing can vary.
Under the revised policy, payments made instead of financial penalties during regulatory settlements will now be transferred directly to the Consolidated Fund.
Source:
“Amending section 2.39 of the Statement of principles for determining financial penalties: Consultation Response”, gamblingcommission.gov.uk, Jul 22, 2026
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