The Gambling Commission has unveiled changes to its approach to calculating and imposing financial penalties against licensed gambling companies in the UK.
Following what the regulator dubbed an “extensive consultation”, the changes will come into effect on 10 October.
A consultation on the topic ran from 15 December 2023 until 15 March 2024 and included 29 industry respondents.
Some firms which took part in the consultation agreed to have their name published, including the Betting and Gaming Council, Entain, Betfred and evoke.
Other entities to contribute to the consultation were GambleAware, Gambling with Lives, BoyleSports, Gamesys and various society lotteries.
The headline change from the Gambling Commission will include a “clear and distinct seven-step process” for the regulator to follow when assessing a potential financial penalty.
The regulator will also provide transparency on how it determines the degree of breaches, while introducing a five-level guide for seriousness.
The Gambling Commission will additionally make adjustments to penalties based on “aggravating and mitigating factors, deterrence and early resolution”.
Finally, the authority said the financial penalties will be based on both the seriousness of the breach and a percentage of gross gambling yield (GGY) or “equivalent income” generated during the period of the breach.
For example, a level five breach would include a fine of 10% to 15% of the GGY generated in that timeframe.
This year, the Gambling Commission has fined Taichi Tech Limited £170,000 for unfair terms and conditions and handed Spreadex a £2m penalty.
The Football Pools was hit with a £375,000 “regulatory action” punishment in March, while Corbett Bookmakers was slapped with a £686,070 fine in the same month.
John Pierce, Gambling Commission 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.
“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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Policy due to come into effect on 10 October will use a scale of seriousness to calculate the size of the penalty for offending licensed firms
The post GC’s new fine system features 15% of GGY penalty for most serious breaches first appeared on EGR Intel.