The UK Gambling Commission has wrapped up its 2023 consultation on financial penalties and set out updates to the financial penalty criteria. This move aims to make things clearer for licensees and ensure everyone knows exactly where they stand. The financial penalty criteria changes are set to kick in on 10 October 2025.

  • Most respondents backed the list of factors for imposing a financial penalty as outlined in the proposed document. Those who disagreed mainly took issue with wording rather than the actual factors. In response, the Commission tweaked the language in factors “a,” “b,” “h” and “i” to better match feedback.

  • Factor “a” now includes reference to whether a licensee has been subject to past regulatory enforcement. Factor “b” was rephrased to better align with the Commission’s approach to public statements. Factor “h” now mentions the extent of any consumer harm. Factor “i” includes a note on potential damage to public confidence in the gambling industry.

  • Many respondents disagreed with the proposed list of situations where a financial penalty would not normally be imposed. They wanted more clarity on when penalties might be avoided and suggested the inclusion of examples. Some even called for adding society lotteries and charities to this list.

  • The Commission decided not to include society lotteries, charities, or personal licence holders in the exemptions. It argued that penalties should still be an option regardless of operator type, in line with the Gambling Act.

  • To improve clarity, the Commission changed “minor” breaches to “trivial” in paragraph 2.5. They also defined it as not posing risks to licensing objectives, consumers, or the wider public. These wording updates are seen as enough to provide transparency without major overhauls.

  • Paragraph 2.3 of the updated document lists key considerations for penalties, such as breach seriousness, what the licensee knew, and their financial standing. Paragraph 2.4 outlines further factors, including repeat behavior, preventative measures, and whether breaches could undermine public trust.

  • A quote from the Commission stated: “Although these are not substantive changes to the proposed version, it is the Commission’s view that the amended version is sufficiently clear.” The final decision emphasizes consistency and deterrence, reinforcing that penalties are used to promote compliance.

  • Paragraph 2.5 now details cases where financial penalties won’t usually apply, such as trivial breaches or when other regulatory action fits better. However, the list is not exhaustive, giving the Commission flexibility to act as needed.

For further details of proposed changes and final wording please click here.