The UK’s gambling regulatory framework is facing a comprehensive independent review that could pave the way for a new Gambling Act, with the newly established Gambling Policy Commission (GPC) set to examine whether existing legislation can keep pace with changes across the industry.
Announced on 9 November, the commission will assess the effectiveness of the Gambling Act 2005 and consider whether further legislative or regulatory changes are necessary. Its work will cover developments in online gambling, emerging products such as prediction markets, consumer protection, taxation and the economic relationship between betting and sport.
The GPC is chaired by Jagjit Chadha OBE, professor of economics at the University of Cambridge, with Professor James Reade of the University of Reading serving as chief economist. The group brings together specialists in economics, law, public policy, health, academia and sport.
Its first step is a public call for evidence, inviting submissions from individuals and organizations with relevant experience. Researchers, consumers, gambling operators, trade associations, treatment and prevention organizations, sports bodies, regulators and policymakers are among those encouraged to participate. The deadline for submissions is 12 February 2027.
The commission expects its evidence-gathering work and commissioned research to continue throughout 2027, with a final report scheduled for 2028. Its findings could provide the basis for a substantial revision of the country’s gambling legislation, according to The Guardian.
Two Decades of Industry Changes Prompt Legislative Review
The review comes approximately 25 years after the last comprehensive independent examination of United Kingdom gambling laws. That process was led by Sir Alan Budd, whose 2001 report contained 176 recommendations. Most were subsequently accepted by the government and incorporated into the Gambling Act 2005.
The legislation established the principal statutory framework for commercial gambling in Great Britain, including the Gambling Commission, licensing objectives and regulatory arrangements for operators.
However, the industry has changed considerably since its introduction. Online gambling has expanded, new technologies have altered consumer behavior, and products such as prediction markets and cryptocurrency-related betting have created questions about the boundaries of existing regulation.
The GPC will examine whether the current framework can accommodate these developments, alongside artificial intelligence and gambling-like features incorporated into digital products. It will also consider activities that overlap with financial markets and whether existing regulatory responsibilities adequately cover products operating across different sectors.
The commission will assess the impact of the government’s 2023 Gambling White Paper, which introduced a program of reforms intended to address shortcomings in the existing system. Its members will examine whether those changes have delivered measurable improvements and whether the measures were proportionate and supported by sufficient evidence.
Chadha said the time elapsed since the Budd Report justified another independent examination of the legislation.
“The last comprehensive independent review of gambling legislation was undertaken a quarter of a century ago,” Chadha said. “Since then, both the gambling market and the wider technological environment have changed considerably.
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.
We want to hear from people and organizations with experience, evidence and expertise across all sides of this debate.”
Will Hutton, president of the Academy of Social Sciences, also welcomed the initiative, describing the commission as an impressive collection of specialists capable of providing an independent assessment of the regulatory system.
“The arrival of prediction markets growing rapidly in scale and reach only underlines how the 2005 Gambling Act has been superseded by the march of technology,” Hutton said. “Everything from consumer protection to appropriate tax policies need urgent review. I look forward to the results.”
The GPC will also examine how gambling regulation is coordinated across government, including whether overlapping responsibilities or inconsistent policy approaches are affecting the sector.
Taxation, Illegal Gambling and Consumer Protection Under Scrutiny
Tax policy will represent a significant part of the commission’s investigation. Its members intend to assess how recent changes to gambling duties affect businesses and consumers, alongside the interaction between taxation and other regulatory measures.
The inquiry will also consider the statutory levy introduced to finance gambling research, prevention and treatment.
The sector’s wider economic contribution will feature in the assessment. Department for Culture, Media and Sport figures estimate that gambling generated £5 billion in gross value added in 2024 and supported approximately 75,000 jobs in 2025. HM Revenue & Customs recorded £3.9 billion in betting and gaming duty receipts during the 2025/26 financial year, while the Office for Budget Responsibility expects collections to increase further.
Despite these figures, gambling’s contribution to gross value added remains the lowest among the sectors covered by the Department for Culture, Media and Sport.
Taxation has already become a significant issue for operators following the government’s Autumn Budget announcement last month. The government increased Machine Games Duty by five percentage points, taking the rate to 25%. The Chancellor said the additional revenue would help finance support for high streets, including business rate relief for businesses operating in those areas.
The commission will also investigate illegal gambling and the factors that lead consumers to offshore or unlicensed platforms. Its review will cover enforcement measures involving payment providers, websites, search engines, social media companies and app stores.
A Gambling Commission survey published shortly before the review found that 2.5% of adults in Great Britain who had gambled online during the previous year reported using an illegal gambling website in the four weeks before completing the survey. The research covered 14,257 online respondents, including 3,569 people who had gambled online in the preceding year.
However, Gambling Compliance International president Ismail Vali questioned whether the reported percentage 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.”
The GPC will examine the scale of gambling-related harm, its underlying causes and how its effects are distributed across the population. It will also assess the effectiveness and cost of existing interventions, including the operation of the statutory levy.
Another issue under consideration is whether future legislation should introduce civil liability for gambling-related harm. The commission noted that disagreements over the available evidence have complicated policy decisions and discussions about treatment provision and legal responsibility.
Its terms of reference also allow for an examination of whether certain forms of remote gaming should remain available through conventional commercial licenses or whether alternative arrangements, including restricted licensing or public provision, warrant consideration.
British Horseracing Faces Opportunity Over Betting Revenue
The review could have particularly important consequences for British horseracing, which maintains a distinctive financial relationship with the betting industry.
Although betting on racing represents a relatively small proportion of the overall gambling market, revenue connected to wagering remains essential to the sport’s financial structure. The commission has therefore explicitly included horseracing’s position in its terms of reference.
This will involve examining the statutory betting levy and media rights arrangements linked to betting turnover. The GPC will also consider whether sports organizations should hold economic rights over betting activity involving their events and whether part of the General Betting Duty should be replaced by a statutory Sports Betting Levy.
The inclusion of these questions gives racing an opportunity to explain how its funding arrangements differ from those associated with other gambling products, particularly fixed-odds casino games and slots.
Two members of the commission bring direct experience of racing’s economics. Reade has previously contributed to research examining Ascot racecourse’s financial and cultural importance, published in June 2026. Tom Savill, a director of Plumpton Racecourse, co-authored the 2025 report Securing Racing’s Future.
Their participation could help ensure that the sport’s financial arrangements receive detailed consideration during the review.
With submissions closing on 12 February 2027 and the final report expected in 2028, the review will give the industry an extended period to contribute evidence before recommendations on the future of British gambling legislation emerge.