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The UK Gambling Commission (UKGC) will bring in new rules for calculating and applying financial penalties starting October 10, 2025. These changes are being made to improve clarity, fairness, and transparency when companies break gambling laws. After listening to feedback through public consultation, the UKGC is now ready to apply a more structured approach to punishments for rule-breaking in the gambling industry.
What’s Changing in the Penalty Process?
Under the new plan, the UKGC will follow a seven-step process to deal with gambling regulation breaches. These breaches will be ranked in five levels of seriousness, and each level will guide how much the penalty should be.
The size of the fine will be based on a percentage of the company’s Gross Gambling Yield (GGY) or the income earned during the time of the breach. From there, the amount can be adjusted up or down depending on:
- How serious the situation was
- If there were any aggravating or mitigating factors
- Whether the operator acted quickly to fix the issue
- If the punishment should also act as a warning to others
This system helps to ensure fairness for both large and small operators and provides a clear and simple way to calculate penalties.
Statement from the Gambling Commission
John Pierce, the UKGC’s Director of Enforcement and Intelligence, 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.”
He also explained that the new method would speed up decision-making, reduce confusion, and make the penalty process easier to understand for operators and the public.
What About Charities and Lottery Groups?
The new rules apply mostly to gambling companies. However, different rules will be used for charities, personal licence holders, and society lotteries. These groups won’t have penalties based on GGY, but instead will be fined using a more suitable method that fits their situation better.
Early Compliance is Key
A major goal of the new framework is to encourage operators to comply with rules early, before a case needs strict punishment. By clearly showing how penalties are calculated, the UKGC hopes operators will take steps to fix problems fast.
Pierce explained:
“Crucially, the new approach also encourages compliance at the earliest opportunity, supporting the protection of consumers alongside fair and proportionate outcomes for operators.”
In other words, the new system rewards those who take responsibility early and punishes those who ignore warnings.
Background: Why These Changes Matter
In recent years, the Gambling Commission has fined big companies for not following the rules. Entain was fined £17 million in 2022, and William Hill was hit with a £19 million fine in 2023. These cases involved anti-money laundering issues and failures to protect players.
By changing how penalties are calculated, the UKGC hopes to:
- Avoid unclear or unfair decisions
- Give companies a fair chance to fix problems
- Improve overall trust in the gambling industry
- Protect players more effectively
Also Read: Dutch Sports Adjust Smoothly To New Gambling Sponsorship Ban
