Crypto, AI & prediction markets face UK gambling law test

The commission will also weigh civil liability for gambling harm & whether part of a betting duty should be replaced by a Sports Betting Levy.

The hit

The UK has launched an independent review of the Gambling Act 2005 to decide whether the law, introduced more than 20 years ago, is fit for purpose or whether a new framework is needed. The newly formed Gambling Policy Commission, chaired by Cambridge economist Professor Jagjit Chadha, will assess whether the framework can handle prediction markets, AI, crypto & gambling-like digital features. “Our purpose is to examine the evidence carefully and independently,” Chadha said.

Why it matters

Any rewrite could touch tax & licensing, with the commission also examining laws on crypto & the boundary between gambling & financial activity. It will also examine whether sports bodies like British horseracing should get economic rights over betting on their events.

The record

Gambling’s UK economic contribution	£5bn gross value added in 2024, 75,000 jobs in 2025 (DCMS)
Betting & gaming duty collected	£3.9bn in 2025/26 (HM Revenue & Customs)
Machine Games Duty rise	up from 5% to 25% (Autumn Budget)
Illegal site use among online gamblers	2.5% in prior four weeks, of adults who gambled online in prior year; survey of 14,257 (Gambling Commission)
Call for evidence closes	12 February 2027

What happens next

The commission’s call for evidence closes on 12 February 2027, open to researchers, consumers, industry & policymakers. Evidence gathering & commissioned research are expected to continue through 2027, ahead of the commission’s final report.

Sources: UK launches independent review of Gambling Act 2005 amid digital shift

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