Compliance Updates
UKGC: Improvements to Commission Approach to Fining Gambling Operators

The UK Gambling Commission is to strengthen its approach to calculating and imposing financial penalties on gambling companies that breach its rules.
Following consultation the Commission’s Statement of principles for determining financial penalties will be changed to bring greater clarity and transparency. These changes include:
• providing a clear and distinct seven step process the Commission will follow when assessing and imposing a financial penalty
• providing transparency on how the Commission will determine the level of seriousness of the breach, and the introduction of five levels of seriousness
• determining the starting point for the penal element of the penalty by reference to the seriousness of the breach and a percentage of Gross Gambling Yield (GGY) or equivalent income generated during the period of the breach
• making adjustments to the penalty for aggravating and mitigating factors, deterrence and early resolution.
John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, said: “We are making changes to strengthen the transparency and consistency of how we impose financial penalties. These proposals were subject to extensive consultation, and the views shared by all our stakeholders have been taken into account.
“The resulting changes will strengthen our decision-making and streamline the calculation of penalties – helping to improve the efficiency and effectiveness of our enforcement work.
“Crucially, the new approach also encourages compliance at the earliest opportunity, supporting the protection of consumers alongside fair and proportionate outcomes for operators.
“Where fines are imposed on society lotteries, registered charities or personal licence holders these will not be based upon a percentage of the GGY accrued during the breach period, rather an appropriate alternative will be used.”
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