New penalties based on Gross Gaming Yield (GGY) outlined by UK's gambling regulator
The United Kingdom Gambling Commission (UKGC) has announced a significant change in the financial penalty system for non-compliant operators, effective from October 10, 2025. This new approach links penalties directly to a percentage of the operator's Gross Gambling Yield (GGY) during the period of non-compliance.
A Structured Approach to Penalties
The UKGC has outlined a seven-step process for assessing and imposing penalties, moving away from subjective assessments of breach severity. Breaches will be categorized into five levels of seriousness, with penalties adjusted accordingly.
- Level 1 (Least Serious): Minor impact, unintentional or isolated breaches; fines may start at about 0.99% of GGY.
- Level 5 (Most Serious): Intentional misconduct or gross negligence causing substantial harm; fines could exceed 15% of GGY.
Factors Influencing Penalties
The base penalty calculation is tied to a percentage of GGY. However, factors such as intent, systemic issues, harm to consumers, promptness in addressing the issue, and previous warnings will influence the final penalty amount.
Impact on Non-Compliant Companies
Starting from October 10, 2025, non-compliant companies can expect increased transparency and consistency in how penalties are determined. More proportionate penalties, directly tied to the severity and impact of the breach, are also expected. This streamlined approach aims to discourage non-compliance and improve regulatory trust.
It's important to note that this new system does not apply to society lotteries, registered charities, or personal licence holders, who will face penalties calculated by alternative means.
Consultation and Feedback
The new changes aim to clarify the process of calculating penalties and followed a three-month public consultation period. Some concerns were raised during the consultation about the fairness of the new penalty methodology. However, the majority of contributors supported the idea of a more transparent and structured framework for issuing penalties.
John Pierce, the Director of Enforcement and Intelligence, stated that the changes aim to strengthen the transparency and consistency of how financial penalties are imposed. The new changes are part of the UKGC's goal to incentivize licensed operators to uphold social responsibility and Anti-Money Laundering (AML) standards.
In conclusion, the UKGC's new financial penalty system is designed to encourage compliance at the earliest opportunity, boost consumer protections, and strengthen the regulator's decision-making process. The changes were made in response to feedback and suggestions from the consultation process, aiming to provide a clearer and more consistent way of imposing financial penalties.
In the revised regulatory landscape, the United Kingdom Gambling Commission (UKGC) has tied financial penalties for non-compliant casino-and-gambling operators to a percentage of their Gross Gambling Yield (GGY), beginning October 10, 2025. This alteration stems from a structured seven-step assessment process, subdivided into five levels of breach severity, with fines escalating from approximately 0.99% to over 15% of GGY.
In this new structure, factors influencing penalties encompass intent, systemic issues, consumer harm, promptness in addressing problems, and previous warnings.
Given these changes, businesses involved in casino-games and casino-culture must prepare for enhanced transparency and consistency in penalty determination. Furthermore, the UKGC's goal is to motivate licensed operators to maintain social responsibility and Anti-Money Laundering (AML) standards through this streamlined approach.
%20outlined%20by%20UK's%20gambling%20regulator){kind=link}