Summary
- The UK is ready to implement a new formula for determining penalties on operators who violate regulations.
- Penalties could potentially reach 15% or more of an offender's gross gaming yield (GGY).
- These changes follow a lengthy period of consultation.
A new set of rules regarding the imposition of financial penalties is anticipated to be implemented in the United Kingdom on October 10, 2025. This will have significant consequences for violators. The regulator plans to introduce a new formula based on an operator’s gross gambling yield (GGY), with penalties and settlements potentially amounting to 15% of that total.
Penalties in the UK for non-compliant companies could increase significantly
The regulator has stated that the total amount a company owes could potentially increase beyond the 15th percentile threshold. In an update on its website, the regulatory body explained its Statement of Principles for Determining Financial Penalties. The intention is not to intimidate operators with these regulations but to clarify the penalty issuance process while encouraging licensed operators to meet all social responsibility and anti-money laundering standards, as required by their licensing agreements. The UKGC has introduced a clear seven-step process for determining how penalties are imposed. These new guidelines aim to enhance transparency in evaluating the seriousness of regulatory violations. John Pierce, Director of Enforcement and Intelligence, commented on the forthcoming changes: We are implementing changes to improve transparency and consistency in imposing financial penalties. These proposals underwent extensive consultation, and we have considered the feedback from all stakeholders. Pierce further explained that the new approach is designed to encourage compliance as soon as possible, enhance consumer protections, boost the regulator’s decision-making process, and clarify how penalties are calculated.
The changes are discussed with shareholders
In cases where fines are imposed on society lotteries, registered charities, or personal license holders, these will not be calculated as a percentage of the Gross Gambling Yield (GGY) during the period of breach. Instead, a suitable alternative method will be used, concluded Pierce. The regulatory body recognizes that specific entities like society lotteries, registered charities, and personal license holders may not be subject to penalties calculated using the GGY formula, and exemptions might be applicable. These new changes come after a three-month public consultation period. A majority of contributors expressed support for a more transparent and well-structured framework for issuing penalties. However, some have raised concerns about the penalty methodology and questioned whether it might unfairly impact businesses.
