Report

Annual report and accounts 2024 to 2025

The Gambling Commission's 2024 to 2025 annual report and accounts. For the period 1 April 2024 to 31 March 2025.

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Published
15 October 2025

Last updated
15 October 2025 - Changes

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Contents

• Annual report and accounts 2024 to 2025

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• Foreword
• Performance report
• • Introduction
  • The organisation
  • Financial performance analysis
  • Complaints
  • Sustainability
• Accountability report
• • Overview
  • Corporate governance report
  • Remuneration report
  • Staff report
  • Parliamentary accountability and audit report
  • The report of the Comptroller and Auditor General to the Houses of Parliament
• Financial statements
• • Statement of comprehensive net expenditure
  • Statement of financial position for the year ended 31 March 2025
  • Statement of cash flow for the year ended 31 March 2025
  • Statement of changes in taxpayers' equity for the year ended 31 March 2025
• Notes on the accounts
• • Statement of accounting policies
  • Statement of operating costs by operating segment
  • Expenditure
  • Income cash receipts
  • Property, plant and equipment
  • Right of use assets
  • Intangible assets
  • Financial instruments
  • Cash and cash equivalents
  • Trade and other receivables
  • Trade and other payables
  • Provisions and charges
  • Retirement benefit obligations
  • Lease liabilities
  • Contingent liabilities disclosed under IAS 37
  • Related party transactions
  • Amounts of income to the Consolidated Fund
  • Events after the reporting period
• Appendices
• • Annex A - Key operational data
  • Annex B - Performance by Business Plan Deliverable in 2024 to 2025

b. Non-current assets

Capitalisation policy

Non-current asset purchases are capitalised if the original purchase price of an item, or a group of related items, is £2,500 or more, and the asset or group of assets has a useful life exceeding one year. Purchased software licences are classified as intangible assets.

Valuation of non-current assets

Non-current assets, including property, plant and equipment (PPE), right-of-use (ROU) assets, and intangible assets, are initially recognised at cost, in accordance with IAS 16, IFRS 16, IAS 38, and the HMT Financial Reporting Manual (FReM). Cost includes the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating as intended (IAS 16.15–16; IFRS 16.23; IAS 38.27).

Subsequently: PPE and ROU assets are measured using the cost model, that is, at cost less accumulated depreciation and impairment losses. This is consistent with the FReM, which permits the use of depreciated historical cost as a proxy for fair value where this is not materially different, particularly for short-life assets (FReM 2025 to 2026, Section 6.2).

Intangible assets are carried at fair value, with depreciated historical cost used as a proxy where fair value cannot be reliably measured, in line with IAS 38.74 and FReM 2025 to 2026 guidance.

The useful lives and residual values of all non-current assets are reviewed at least annually and adjusted if expectations differ from previous estimates due to wear and tear, obsolescence, or legal and operational constraints (IAS 16.51; IAS 38.104).

Depreciation and amortisation

Depreciation and amortisation are applied on a straight-line basis to write off the cost or valuation of assets evenly over their anticipated useful lives, as shown in the following table.

Anticipated life of assets

Anticipated life of assets

Asset	Anticipated life
IT hardware	4 years
IT software licences	Over the life of the licence if it exceeds 12 months
IT developed software	5 years
Furniture, fixtures and fittings	10 years
Equipment	7 years
Telecoms	7 years
Motor vehicles	4 years
Finance lease	Over the life of the lease

Depreciation and amortisation are charged in full in the month following acquisition of the asset, with no charge being made in the month of disposal. No amortisation is charged on software development until the asset is completed and ready for use.

Property, plant and equipment

Property, plant and equipment (PPE) is stated at depreciated historical cost as a proxy for fair value. As all of the Commission’s assets are short life (less than 10 years), depreciated historical cost is not considered materially different from fair value. An annual review is undertaken to ensure all items remain in use and that disposals are appropriately accounted for (IAS 16.29; FReM 6.2.1).

Right-of-Use assets

Property leases assessed under IFRS 16 are valued using the cost model, which is used as a proxy for current value. This is appropriate given the short-term nature of the leases and the limited fluctuation in the underlying asset values (IFRS 16.24; FReM 6.2.3).

Intangible assets

The Commission’s intangible assets are accounted for in accordance with IAS 38. An intangible asset is defined as an identifiable non-monetary asset without physical substance, which is either separable or arises from contractual or legal rights (IAS 38.8–12).

Under IFRS, software development costs are classified as intangible assets and are capitalised only when all the following criteria are met (IAS 38.57):

• the project is technically feasible and will result in an asset for sale or use
• the Commission intends to complete and use or sell the asset
• the Commission has the ability to use or sell the asset
• the asset will generate probable future economic or service delivery benefits
• adequate resources are available to complete the development
• the costs attributable to the asset during development can be reliably measured.

Internal staff costs directly incurred in the implementation of capital projects are capitalised where they meet the criteria under IAS 38. Research costs are not capitalised (IAS 38.54).

Software purchases that do not require development are recorded as additions within the software category in the intangible fixed asset note.

Software licences

Software licences are assessed to determine whether they meet the criteria for recognition as intangible assets under IAS 38 Intangible Assets, as adapted by the Government Financial Reporting Manual (FReM).

Licences with a term of 12 months or less are considered short-term and do not meet the recognition criteria for capitalisation. These costs are therefore expensed to the SoCNE in the period in which they are incurred. This treatment reflects the absence of long-term economic benefit and aligns with the principles of materiality and cost-effectiveness in financial reporting.

Longer-term software licences that meet the recognition criteria are capitalised and amortised over the period of expected benefit.

In accordance with the FReM 2025 to 2026, all intangible assets are carried at fair value, with depreciated historical cost used as a proxy where this is not materially different (FReM 6.2.4).

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Last updated: 15 October 2025

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