The report offers information about: (1) the main developments undertaken by the Gambling Commission; (2) the activities undertaken toward the implementation of the new regulatory regime contained in the 2005 Act; (3) work and performance in each area of responsibility; and (4) the Commission’s financial statement. The Gambling Commission has a formal role in protecting vulnerable populations from the potentially harmful effects of gambling and is responsible for issuing license conditions and codes of practice to which licensed gambling operators must adhere. The Commission is also responsible for ensuring compliance with the license conditions and codes. Commission funding and fee levels are described as well as its general operations and performance targets. Performance targets fall into the categories of casino, bingo, certification, machines, and lotteries and include the targets of, for example, determining applications to register lottery schemes within 6 weeks of their receipt. The implementation of the Gambling Act 2005, which is due to be implemented in full in September 2007, and the establishment of the Gambling Commission are described. Detailed information is presented for casino gaming, licensed bingo, certification of employees, gaming machines, and lotteries. This information includes data on the prevalence of each type of gambling mechanism, the demand for that gambling mechanism, number of new license applications, money laundering controls, money lending, employment, financial performance, and other relevant information. The operational activities of the Commission’s Inspectorate are presented, including data about staffing, risk assessment, and complaints from the public. Information is also presented about gaming facilities provided in clubs registered under the 2005 Act. Appendixes