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Read Full BioThe UK Gambling Commission (UKGC) announced a new format for how it plans to calculate and impose financial penalties on licensed gambling operators who breach its regulatory statutes.
Set to take effect from October 10, 2025, the latest regulatory reforms will aim to provide a greater degree of transparency, consistency, and proportionality to the enforcement process in the UK.
The recent development stems from an initial industry-wide consultation, which was completed in March 2024.
Since then, the Gambling Commission has set about introducing a new seven-step process for assessing and imposing future fines, based on these findings.
The new approach directly addresses earlier criticisms about the previous penalty framework, which was often seen as both unclear and inconsistent.
The amended supervisory measures also come just a month after the UKGC announced it was revamping its Consumer Voice framework to better protect UK citizens.
Severity-Oriented Penalties to Be Calculated Using GGY Metrics
The design of the new format is based on a tiered system of fines based on the seriousness of each individual breach.
Ranked from Level 1 (minor) to Level 5 (most severe), the UKGC will then assess the level of severity, which will influence the starting point of the fine.
Then, as of October 10, operators will be fined a percentage of their Gross Gambling Yield (GGY) or equivalent revenue during the breach period.
The UKGC will also provide further supporting guidelines for the aggravating and mitigating factors that may reduce or increase the base fine amount.
This additional criterion will form the basis of the Commission’s assessment of the operator’s intent, the speed of remediation, any previous incidents of noncompliance, and the impact the breach may have posed to consumers.
The only exception from the GGY-based model will be society lotteries, registered charities, and personal license holders.
These alternate entities will only face fines that are reflective of their individual operational structure and their public service functions, according to the UKGC.
John Pierce, Director of Enforcement and Intelligence at the Gambling Commission, speaking on the new changes, said they are designed to improve enforcement effectiveness and encourage early compliance.
“Crucially, the new approach also supports the protection of consumers alongside fair and proportionate outcomes for operators,” he stated.
Updating of UKGC’s Enforcement Policy to Minimize Disciplinary Hearings
The backbone of the consultation process involved 29 organisations across the UK’s gambling sector, with 21 consenting to be named in the final public report.
The resulting conclusions led to the new seven-step structure being added to the Statement of Principles for Determining Financial Penalties (SoPfDFP) – first published in 2017, and last updated in 2021.
In accordance with the new regulations, operators will now have a 28-day window to voluntarily settle cases after the preliminary findings to be eligible for reduced penalties.
The incentive here is to encourage organisations to respond quickly, reducing the need for drawn-out enforcement measures.
Following the announcement, the Commission also highlighted that all considerations will be made in the determination of all final penalty amounts, with affordability and proportionality in mind.
It said it would actively avoid imposing fines that could cause “significant financial hardship,” particularly in cases involving smaller operators or nonprofit organisations.
Given that the UKGC revealed its Q1 2025 earnings saw a 7% year-on-year uptick, reaching £1.45 billion, the declaration reinforces its commitment to monitoring and enforcing the UK’s gambling sector regulatory guidelines as it continues to grow.
