The UK has launched an independent review of its gambling legislation to determine whether the Gambling Act 2005 remains fit for purpose or whether a new framework is needed to address changes in technology, gambling products and consumer behaviour.
The newly established Gambling Policy Commission (GPC) has invited evidence from researchers, consumers, industry representatives, regulators and policymakers. Its review will examine the effectiveness of the existing regulatory framework more than 20 years after the legislation was introduced, with a final report expected in 2028.
The commission will assess whether current laws can accommodate emerging developments such as prediction markets, artificial intelligence, cryptocurrencies and gambling-like features in digital products. It will also examine the boundaries between gambling and financial activity, particularly products that operate across both sectors.
Will Hutton, president of the Academy of Social Sciences, said the growth of prediction markets demonstrated how technological developments were challenging existing regulations.
“Everything from consumer protection to appropriate tax policies need urgent review,” Hutton said.
The inquiry will also evaluate the government’s 2023 Gambling White Paper and its programme of sector reforms, examining whether the measures have delivered measurable results, were proportionate and were supported by sufficient evidence.
Taxation will be another central area of the review. The commission will examine how recent changes to gambling duties affect operators and consumers, as well as their interaction with the statutory levy supporting gambling research, prevention and treatment.
The Department for Culture, Media and Sport estimates that gambling contributed £5 billion ($6.71 billion) to UK gross value added in 2024 and supported approximately 75,000 jobs in 2025. HM Revenue & Customs recorded £3.9 billion ($5.23 billion) in betting and gaming duties during the 2025/26 financial year, while the Office for Budget Responsibility expects receipts to continue rising.
The commission noted, however, that gambling’s contribution to gross value added is the lowest among DCMS sectors. The review follows the government’s Autumn Budget decision to increase Machine Games Duty from 5% to 25%, with the additional revenue intended to support high streets, including through business rate relief.
The GPC will also investigate the scale of illegal gambling, including offshore and unlicensed activity, and examine why consumers use such platforms. Its assessment will cover enforcement measures involving payment providers, websites, search engines, social media platforms and app stores.
The inquiry will further consider whether certain forms of remote gaming should continue operating under conventional commercial licences or whether alternative arrangements, including restricted licensing or public provision, should be explored.
A Gambling Commission survey published shortly before the review found that 2.5% of adults in Great Britain who had gambled online in the previous year had used an illegal gambling website in the four weeks before being surveyed. The survey covered 14,257 online respondents, including 3,569 people who had gambled online in the previous year.
Ismail Vali, president of Gambling Compliance International, questioned whether the figure adequately reflected the financial scale of illegal gambling.
“The percentage of people reporting illegal gambling is not the percentage of gambling revenue captured by crime,” Vali said.
“A relatively small audience, particularly one concentrated around vulnerable, repeat or high-value gambling behaviours, can generate substantial criminal revenue,” he added.
Gambling-related harm will also feature prominently in the inquiry. The commission will examine its scale, causes and distribution, alongside the effectiveness and costs of existing interventions. It will assess how the statutory levy supports research, prevention and treatment and consider whether future amendments to the Gambling Act should allow civil liability for gambling-related harm.
The review will also examine the relationship between betting operators and sports, particularly British horseracing. The commission will consider whether sports organisations should have economic rights over betting on their events and whether part of the General Betting Duty should be replaced by a statutory Sports Betting Levy.
In addition, the inquiry will assess whether gambling policy is sufficiently coordinated across government departments or whether a more formal cross-government structure is needed to address overlapping responsibilities and conflicting approaches.
The commission is chaired by Professor Jagjit Chadha, an economist at the University of Cambridge, with Professor James Reade of the University of Reading serving as chief economist.
Chadha said the last comprehensive independent review of gambling legislation had taken place about a quarter of a century ago.
“Since then, both the gambling market and the wider technological environment have changed considerably,” he said.
“Our purpose is to examine the evidence carefully and independently: to understand how the existing framework has operated, assess the impact of more recent reforms, and consider what legislative and regulatory framework will be appropriate for the years ahead.”
The call for evidence closes on February 12, 2027. Evidence gathering and commissioned research are expected to continue throughout 2027, ahead of the commission’s final report in 2028.