Exclusive: Multiple UK gambling charities on brink of collapse amid statutory levy disarray

Summary

Sources in the gambling harms sector tell NEXT.io that multiple UK gambling charities are close to insolvency despite the statutory levy for research, education and treatment having already been collected from operators. The rollout of the new statutory levy system is described as poorly handled: funds collected in September have not been distributed, briefings suggested distributions would begin in October, but many providers now expect payments to be delayed until the new year.

The short-term System Stabilisation Fund (£32.8m) was intended to bridge the gap but sources say it is insufficient and was distributed opaquely. Some charities have closed, others have cut services or made redundancies, and many have been forced into intensive fundraising that distracts from frontline work. Tensions exist between organisations that previously relied on industry funding, public health bodies, NHS/OHID, and the new commissioning structures, creating a Catch-22 for groups fearful of losing access to future levy funds if they accept industry money now.

GambleAware rejects accusations of mishandling the stabilisation fund and says it has used available funding to stabilise services. The government says it remains committed to reducing gambling harms and that NHS England and OHID will oversee future funding decisions. Nevertheless, providers warn that the current chaos risks leaving problem gamblers without vital support.

Key Points

Operators paid the statutory levy in early September, but most providers have not received guidance or funds.
Multiple charities face insolvency, closures, service cuts and redundancies; some have already shut.
The £32.8m System Stabilisation Fund is widely viewed by providers as insufficient and poorly administered.
GambleAware denies mishandling funds and says available money was used to stabilise services.
Providers were told funds would start to be distributed in October, but delays now look likely until the new year.
Organisations face a Catch-22 over accepting industry funding — necessary short-term survival vs jeopardising future eligibility.
Political and sectoral tensions (public health bodies, campaigners, commissioning boards) complicate allocation and procurement.
Smaller charities may struggle with procurement rules and bidding under the new statutory commissioning system.

Context and relevance

This piece matters because it exposes a real-time funding failure that affects frontline treatment and prevention of gambling harms across the UK. The switch from voluntary industry donations to a statutory levy was meant to centralise and stabilise funding; instead, poor transition planning and opaque short-term funding have produced acute risk to services just as the levy system is supposed to come into force. Anyone working in addiction services, public health, regulatory policy, or gambling industry compliance should be paying attention — this impacts how support is delivered and who controls the cash.

Why should I read this?

Short version: this is messy, urgent and directly affects people who need support. If you care about whether problem gamblers keep getting help — or about who ends up controlling money and power in the sector — this is worth five minutes. We’ve read the detail so you don’t have to: charities are bleeding cash, the bridge fund isn’t cutting it, and the next few months are make-or-break for services.