UK Launches Gambling Policy Commission to Overhaul 2005 Act

Commission Structure and Timeline

The United Kingdom has announced the formation of a new Gambling Policy Commission (GPC) to review the nation’s gambling legislation. Jagjit Chadha OBE, a professor of economics at the University of Cambridge, will chair the body. The commission is tasked with identifying problematic areas within the current legal framework and proposing reforms that may culminate in a new Gambling Act.

The current legislative basis for the sector is the Gambling Act 2005. Officials noted that the last comprehensive review of the UK’s gambling sector was more than 20 years old. That 2001 review produced 176 recommendations, most of which were incorporated into the 2005 framework. However, the 2005 Act did not account for significant technological shifts or broader market changes, including the rise of online gambling, prediction markets, and cryptocurrency.

Chadha said the commission intends to gather input from a wide range of voices. “We want to hear from people and organisations with experience, evidence and expertise across all sides of this debate,” he said. The GPC plans to collect feedback from industry stakeholders, public health professionals, and other interested parties. The submission process for this feedback ends on 12 February 2027. The commission is scheduled to release its final recommendations before the next UK general election.

Horse Racing and the Betting Levy

Horse racing is designated as a priority area for the GPC, specifically regarding the potential for special status. The sector has faced significant financial challenges in recent years, particularly after lawmakers refused to alter the Horserace Betting Levy. Stakeholders describe the current 10% levy rate as unsustainable, arguing that betting proceeds increasingly fall short of rising operational costs.

Key changes under consideration by the commission may center on the statutory betting levy and media rights linked to betting turnover. Tom Savill, director of Plumpton Racecourse, is a key member of the commission, as is Dr James Reade, an economist. Their involvement underscores the focus on the economic viability of the racing sector within the broader gambling landscape.

Operators in the sector have also faced pressure from regulatory measures. Authorities have noted that affordability checks threaten to push bettors toward offshore alternatives. This dynamic has contributed to a challenging environment for licensed operators who must balance compliance with customer retention.

Recent Industry Developments

The push for legislative review comes amid significant operational changes in the UK market. Betfred, a major operator, recently cut its sponsorship of all five British Classics and closed hundreds of betting shops. These moves reflect the financial strain faced by traditional high-street betting operations in an increasingly digital market.

Fiscal policy has also impacted the sector. Lawmakers raised the Machine Gaming duty from 20% to 25% to help finance the 2026 UK budget. This increase adds to the cost base for operators offering fixed-odds betting terminals and other machine-based games. The GPC’s review will need to consider how such fiscal measures interact with broader regulatory goals and market sustainability.

The commission’s work will determine whether the 2005 Act is amended or replaced entirely. While the specific outcomes remain to be determined, the focus on modern digital products and the economic health of horse racing suggests that the resulting legislation will address issues that have grown more urgent since the last major review.