Regulator Reviews Settlement Structure

The UK Gambling Commission (UKGC) has launched a public consultation on potential changes to how regulatory settlements are handled, proposing that such funds should go directly into the UK government’s Consolidation Fund. The consultation, open until 2 April 2026, seeks feedback on amending section 2.39 of the UKGC’s Statement of Principles for Determining Financial Penalties.

Currently, settlements negotiated between the UKGC and operators—distinct from compulsory fines—do not have to be paid into the Consolidation Fund. This fund collects revenues from taxes and penalties to support government initiatives.

The regulator stated that the proposal would clarify how settlement funds are managed in light of structural reforms following the 2023 Gambling Review White Paper.

Ensuring Transparency and Efficiency

Redirecting Settlement Payments

In outlining the amendment, the UKGC said the change would “ensure any future regulatory settlements are paid quickly to the Consolidated Fund, where the government could decide on their use—as it already does with formal financial penalties.”

The Commission added that this move would align the process with the new levy commissioning structures for gambling harm funding and eliminate the risk of duplication or overlap in public health projects funded through both settlements and the statutory levy.

The UKGC also emphasized that the measure would enhance transparency and prevent potential criticism that settlement funds could be used to indirectly increase funding for specific bodies or programmes.

Impact of the New Levy Structure

Transition After GambleAware’s Closure

The proposed amendment follows major changes to how money from the industry is distributed following the closure of GambleAware, scheduled for March 2026. Previously, the charity acted as the main commissioner of research, education, and treatment programmes funded through regulatory settlements.

Under the new statutory levy system, those duties will be reassigned as follows:

  • NHS England, NHS Scotland, and NHS Wales will commission treatment services.
  • The Office for Health Improvement and Disparities (OHID) will oversee prevention initiatives.
  • UK Research and Innovation (UKRI) will manage research funding.

The UKGC notes that, without GambleAware, there is no automatic destination for settlement funds, and a direct transfer to the Consolidation Fund would prevent budget gaps or uncoordinated spending.

Recent High-Value Settlements

Regulatory settlements have historically involved substantial sums, often running into tens of millions of pounds. Among the largest examples were:

  • £17 million by Entain (2022) for social responsibility and anti-money laundering failings.
  • £19 million by William Hill (2023) in a record enforcement action.

These cases illustrate the financial scale of enforcement activity and why clear allocation rules are vital to ensure confidence in how such funds are used.

Policy Rationale and Next Steps

The UKGC maintained that the reform seeks to avoid the perception that regulatory enforcement could influence funding for gambling harm services. Instead, funds should contribute transparently to the UK Treasury’s Consolidation Fund, allowing the government to determine their use through established budgetary channels.

Stakeholders across the gambling, public health, and research sectors are invited to submit input before the April 2 deadline. The Commission is expected to publish the results and final recommendations later in 2026.

Summary

The UK Gambling Commission’s proposal to send regulatory settlements directly to the UK Consolidation Fund would mark a significant governance shift. It reflects both post-GambleAware restructuring and a broader effort to simplify, depoliticize, and make enforcement funding more transparent under the UK’s evolving gambling regulation framework.