British Gambling Commission consults on proposed new destination for regulatory fines

The gambling regulator has proposed an amendment to its rules for financial penalties.

UK.- The Gambling Commission has launched a consultation on whether regulatory settlements paid by British betting operators should be redirected to the UK government’s Consolidation Fund. The fund already receives compulsory financial penalties imposed under section 121 of the Gambling Act 2005, but not settlements since these are negotiated agreements.

The proposal would amend Section 2.39 of the Gambling Commission’s Statement of Principles for Determining Financial Penalties in order to lose this gap. Regulatory settlements would immediately be directed to Consolidation Fund, which pools various government revenues such as taxation and is used to support public initiatives. The government would then decide how they funds should be used.

The regulator sees the proposal as the “most viable and appropriate option” to prevent a duplication of work funded by the new gambling levy. It said directing payments to the Consolidation Fund would help avoid fragmented activity, gaps in provision, or duplication, particularly since settlement amounts and payment schedules are unpredictable.

It also believes the change would help counter potential criticism, such as claims that enforcement actions are used to generate revenue for research.

With the introduction of the gambling levy, a new structure has been created to replace GambleAware for the commissioning of research, education, and treatment programmes. Under the new frameworks, the NHS commissions treatment services, the Office for Health Improvement and Disparities (OHID) is responsible for prevention measures and UK Research and Innovation (UKRI) is in overseeing research.

While regulatory settlements are unpredictable, they can involve substantial sums. The largest British Gambling Commission regulatory settlement to date remains a £19.2m against William Hill Group in March 2023.

The consultation will run until April 2.

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