Gambling journal Next.io has reported that “multiple gambling harms charities are on the brink of insolvency” amid confusion surrounding allocation of funding from the new statutory levy.

According to sources, organisations had been told distribution will begin this month, however several organisations have already been forced to close their doors as they await clarity from the government.

“They’re miles away from being ready,” co-MD of compliance specialist IC360, Mark Potter, told the journal. “For me, the biggest issue is if they are actively defunding the current providers and they’re not ready to launch the new providers, that leaves a large gap – and problem gambling doesn’t go away.”

Robert Mabbett, safer gambling consultant at Better Change, added: “The issue I have is this gap in funding isn’t a surprise. It feels more like a choice.”

During a recent briefing organised by NHS England and OHID, charity representatives were reportedly told the funding would be allocated this month, however providers said “they have had little to no information about next steps, with many now expecting to be told the funds will not be distributed until at least the new year.”

“Few who spoke to Next.io had a positive view of how the current Labour government has handled the matter, with many suggesting the current gambling minister has not been across it at all.”