Gambling Charities May Close Over Funding Gap

by Jamie Smith, 1 October 2025

A funding gap linked to the launch of a new statutory gambling levy in the UK may lead to charities struggling to continue their operations.

Gambling-related charities could soon be running out of money. AbsoluteVision, Pixabay

Key Facts:

• Labour aims to raise £100 million through the new levy
• Money will help to fund gambling support organisations
• First payments of the levy are set to be made in October
• A funding gap could emerge in the meantime, experts say

A new report cites a range of expert sources who claim problems linked to Labour’s rollout of the new levy could threaten the existence of gambling-related charities.

The government has already confirmed that GambleAware – which was funded by voluntary contributions from gambling companies – is being wound down thanks to the new levy.

More charities could be at risk of going under due to issues with the levy, with the first payments set to be made in October.

Labour plans to raise as much as £100 million through launching the levy, which has proven controversial.

And charities may find it hard to balance the books until money begins filtering through, though questions have also been asked about the previous funding model.

Funding Issues ‘A Choice’

While some teething issues with the change in funding systems were always expected, some from within the industry believe it is a deliberate move from the government.

Better Change describes itself as the industry “go-to organisation” for promoting positive play, and its safer gambling consultant Robert Mabbett is unsurprised by the problems.

He told NEXT.io: “The issue I have is this gap in funding isn’t a surprise. It feels more like a choice. There’s so much money out there that has been raised through the levy.”

Co-director of compliance specialist IC360, Mark Potter, is another critic.

He believes the government is “miles away” from a successful launch of the new funding model and noted current providers are being defunded before new groups are up and running and ready to take their place.

Potter said: “Problem gambling doesn’t go away.”

GambleAware Refutes Allegations

GambleAware – which will be shuttered at the end of March next year – has faced criticism over the way it handles funding, with some saying it sat on too much money since being awarded £32.8 million in regulatory settlements, for the System Stabilisation Fund.

But the organisation’s chief executive, Zoe Osmond, hit out at those suggestions. He rejected any allegations that funds were not handled correctly.

She said in an interview with NEXT.io that GambleAware is making it a priority to have a “safe and smooth transfer” to the new system.

Osmond added: “We have and continue to have in place robust commissioning processes that are strategic, evidence-led and include the input of lived experience.”

The GambleAware chief executive highlighted the fact that it has funded the National Gambling Support Network during the transition period to the new levy system.

She said: “The government and Gambling Commission support our work and are sighted on the allocation of funding to maintain the system until the levy is fully in place. We strongly rebut any suggestions or comments otherwise.”