The UK Gambling Commission will direct regulatory settlement funds into the government's consolidated account. Ministers will decide whether the money is spent on gambling harm or other priorities.
The decision followed a public consultation in which industry respondents objected to removing settlement money from the gambling sector. Previously, fines paid by licensees went to GambleAware to fund research into gambling harm. The charity ceased operations in March after the government introduced a mandatory statutory levy, with proceeds now flowing to the Office for Health Improvement and Disparities.
The consultation closed in April and drew 28 responses from operators, trade bodies, charities and individuals. Half opposed the regulator's proposal. They argued that funds would leave the sector and be diverted to unrelated government spending. Some believed that without a direct link to the industry, fines would lose their deterrent effect.
The Commission acknowledged the decision would prove unpopular with former recipients of settlement funding. It said that without a central body able to coordinate distribution, transfer to the consolidated fund remained the only workable option. The regulator added that revenue from the statutory levy is sufficient to support research, prevention and treatment of gambling harm.
The consolidated fund typically finances day-to-day public services, departmental operations and debt servicing. In December, DCMS announced that 50% of levy proceeds would go to treatment, 30% to prevention and 20% to research.
