New UKGC Regulations to Introduce Revenue-Based Penalties from October

The GGY represents a gambling operator’s revenue after paying out winnings, and it must be reported correctly. To report it correctly, the stake and prize amounts must reflect only the gambling transitions that form part of the GGY calculations. The GGY is entirely separate from the GGR (Gross Gambling Revenue), and operators must report the GGY correctly to prevent any penalties.

These new percentage-based penalties will come into effect on 10 October 2025, and a seven-tiered system will calculate fines and tie them to operator revenue. If a breach is deemed the most severe, the operator could face fines up to 15% of GGY, or potentially even more in some cases.

An industry consultation between December 2023 and March 2024 laid the groundwork for this new system, assessing 29 organisations and their responses. The consultation provided information on which amendments could be made to the approach to handing out penalties for regulatory breaches.

Following the consultation, updates were made to the statement of principles for determining financial penalties, and this has been its first update since 2021. Gambling Commission director of enforcement and intelligence, John Pierce, said, “We are making changes to strengthen the transparency and consistency of how we impose financial penalties.”

He continued, “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.”

The new regulations plan to implement penalties for the following infringements:

• Whether the licensee committed the breach with intention or recklessness.
• Whether the licensee could have prevented the licence breach.
• Whether the breach caused or had the potential to cause harm to consumers, assessing the extent of the harm.
• Whether the breach of the licence conditions may have damaged confidence in the gambling industry.

This is not a full list of the guidelines, and these penalties may differ depending on circumstances. For example, if an operator is to repeat an offence, they may experience higher penalties than for first-time offenders.

Feedback so far has mainly expressed support for a more transparent system that follows set guidelines, but concern has been raised about how this may impact certain areas of the business. Any concerns have been countered by the Gambling Commission, which assured that the seventh step of the tier system ensures fines are proportionate.

The UKGC has considered when revisions of the framework may need to be made, for example, with society lotteries or registered charities.

As a user, these regulations will have minimal effect on your experience. It will just ensure that gambling site operators are following set guidelines that ensure transparency and security.