A new set of rules that will determine how financial penalties are meted out is expected to come into the United Kingdom on October 10, 2025, with serious implications for offenders. The regulator is going to use a new formula, based on an operator’s gross gambling yield (GGY), with penalties and settlements potentially reaching 15% of that amount.
Penalties in the UK for non-compliant companies could increase significantly
The regulator has said that it could even increase the total amount owed by a company, and exceed the 15-percentile threshold. In a website update, the watchdog outlined the Statement of principles for determining financial penalties.
However, the regulator does not necessarily seek to threaten operators with its set of rules, but rather to clarify the process of issuing a penalty and incentivize licensed operators to uphold all social responsibility and AML standards, part of their licensure agreement.
The UKGC is providing a clear and distinct seven-step process that will determine how a penalty is imposed. The new rules should also provide better transparency as to how the seriousness of a transgression is determined.
Director of Enforcement and Intelligence John Pierce had this to say, commenting on the upcoming changes:
"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."
According to Pierce, the new approach will encourage compliance at the earliest opportunity, boosting consumer protections, as well as strengthening the regulator’s decision-making process and clarifying penalty calculation.
The changes are discussed with shareholders
"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," Pierce wrapped up.
The regulator acknowledges that certain organizations, such as society lotteries, registered charities, and personal license holders, may not be eligible to be penalized under the GGY formula, and exemptions may apply.
The new changes follow a three-month public consultation period, with the majority of contributors arguing that a more transparent and better-structured framework for issuing penalties was welcomed.
Some, though, have questioned the penalty methodology and whether it would not affect business unfairly.
