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The National Lottery operator says the US jackpot game could raise up to £1 billion a year for good causes.
Most licence categories will go up from October, but society lotteries are frozen and some on-course bookmakers will move to a gross-gambling-yield model.
Participation stayed broadly steady, but the Commission found sharp differences in who seeks help and where gambling-related harms fall.
Ministers say geo-blocking and VPNs have left a loophole that keeps offshore brands visible in British sport.
MPs want the evidence base behind Financial Risk Assessments, as the commission prepares a phased rollout with new thresholds and pilot data.
The gambling supplier said six unlicensed websites had carried its games and that it moved to cut off the traffic once the issue was found.
The proposed payment would resolve historical compliance failings, while trading in the year remained ahead of expectations.
The think tank says local services miss early warning signs, as referrals to NHS gambling clinics have risen sharply.