Gambling Commission Adds Seriousness Scale for Breaches

The Gambling Commission in Great Britain is changing how it hands out fines to companies that break gambling rules. Starting 10 October, a new process will decide penalties based on how much money was made during the time of the breach, rather than using a fixed approach. The aim is to make the system fairer and more predictable, with clearer steps from start to finish.

Good to know

• New rules will tie penalty size to a percentage of a company’s gross gambling yield (GGY).
• Penalty decisions will follow a set seven-step process starting 10 October.
• A five-level seriousness scale will guide how heavy or light each fine should be.

The changes follow a public consultation that ran from December 2023 to March 2024. As part of that process, the Commission reviewed how it previously calculated fines—often relying on general factors like repeat offences or how quickly a company fixed the problem.

The updated process introduces a structured approach. For starters, each case will now be assessed using a formal seven-step checklist. Part of that includes assigning the breach a seriousness level from 1 to 5, with level 5 being the most serious. These levels will affect how much a company ends up paying.

The Gambling Commission also confirmed that the GGY-based model will not apply across the board. Society lotteries, charities, and personal licence holders will be handled differently, according to John Pierce, the Commission’s director of enforcement and intelligence.

Factors like whether the breach was intentional, whether the operator had ignored previous rulings, or how much harm was caused to customers will now play a bigger role in calculating penalties. The regulator also plans to reduce fines if companies act quickly to admit faults and settle cases. An early resolution within 28 days could lead to a discount.

At the same time, the regulator has left room to increase fines in some cases, especially for repeat violations or when setting an example to deter others. But it also wants to make sure the penalty does not hit the company so hard that it cannot continue operating. That is where affordability and proportionality will still be considered.

John Pierce 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. Crucially, the new approach also encourages compliance at the earliest opportunity, supporting the protection of consumers alongside fair and proportionate outcomes for operators.”

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