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Governance and accountability

The governance and accountability needed for a levy, including decisions on destinations and commissioning are a matter for government.

We would expect the Gambling Commission to have Managing Public Money (MPM) and Value for Money (VFM) responsibilities in respect of administering the collection of levy funding and any levy monies used for our own purposes for example, regulatory research. However, we would have concerns should the Commission have MPM and VFM responsibilities for spending decisions made by wider organisations within the levy system, including other public bodies. We will continue to work closely with government to ensure clear lines of accountability are provided ahead of the implementation of the levy and that any MPM and VFM responsibilities are appropriately fulfilled.

If we were required to put additional governance apparatus around the levy, the Commission would need to employ significant new resources to undertake this work and would require specific and specialised expertise we do not possess.

We consider our role within the levy system should be limited to ensuring gambling operators meet their obligation to pay the levy and take appropriate enforcement action where they do not.

Ensuring that levy funding is only applied for purposes that are legitimate and lawful (as set out in the statutory framework) should be a priority for government in the final design and administration of the levy.

The Commission should not be providing oversight for the levy system as a whole, as this is a matter for government, our oversight should be limited to the collection of levy dues from gambling operators and administering its distribution in line with the strategic direction from government. We also do not have the expertise to advise on this issue over and above recommending that any non-public body in receipt of levy funds should be held to the same standards as public sector commissioners. Any non-public sector body who is not willing or able to be held accountable in this way should be ruled out of receiving levy funds.

We wish to emphasise the point made previously that in considering the design and implementation of the statutory levy, the implications for what this might mean in relation to the White Paper, High stakes: gambling reform for the digital age (opens in new tab) commitment to review the Commission’s fees framework is not overlooked, and that any decisions on both are consistent and complementary.

Based on our experience of implementing the Economic Crime Levy (which was announced in September 2021 with the first payments not due until September 2023) we recommend government give due consideration to an appropriate timescale for implementing the statutory levy.

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Last updated: 16 November 2023

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