UK Gambling Commission Introduces Stricter Fining Approach and Tackles Unlicensed Gambling

Posted on July 14, 2025 | 7:06 am
Improvements-to-Commission-approach-to-fining-gambling-operators

The UK Gambling Commission (UKGC) is enhancing its approach to calculating and imposing financial penalties on gambling operators who fail to comply with regulations. As of July 10, 2025, the Commission has introduced several key changes to its penalty process, providing more transparency and clarity in how fines are determined.

A significant update includes the introduction of a distinct seven-step process for assessing and imposing financial penalties. The Commission now uses five levels of seriousness to determine the gravity of a breach, which in turn influences the size of the penalty. The base amount for the penalty is determined based on the seriousness of the violation and a percentage of the operator’s Gross Gambling Yield (GGY), or equivalent income from the breach period.

Moreover, penalties can be adjusted depending on various factors such as aggravating circumstances, the effectiveness of deterrence, and early resolutions. This move is designed to ensure consistency, transparency, and fairness in the gambling sector’s regulatory framework, while encouraging operators to comply with regulations as early as possible.

This new structure not only aims to streamline the process of imposing penalties but also strengthens the Commission’s ability to enforce responsible gambling standards and maintain fairness across the industry. It is part of the UKGC’s ongoing efforts to improve regulatory practices and safeguard consumer protection.

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Record Growth in Online Gambling and Shifting Player Behavior

In October 2024, The UK Gambling Commission also released its market data, showing a marked increase in online gambling revenue, particularly from the online slots sector. The report covers the period from March 2020 to September 2024 and highlights a significant rise in the gross gambling yield (GGY) across both online and in-person gambling activities.

Online gambling saw a year-on-year increase of 11% in GGY, with online slots experiencing a 16% surge, reaching £680 million. The number of spins in online slots also hit a new record of 23.3 billion, reflecting a growing engagement from players. However, despite these gains, the average gambling yield per session decreased slightly, from £4.20 to £4.13.

The data also revealed that while there was a rise in overall gambling sessions, the number of slots sessions lasting longer than an hour increased by 9%. This highlights a trend of deeper player engagement, although some sessions saw a decrease in time spent per session. Additionally, automated interactions for safer gambling services have risen, though direct interactions from operators declined, indicating a shift towards automation in responsible gambling practices.

The UKGC also conducted a comprehensive study to understand the scale and impact of the unlicensed online gambling market. This study will analyze web traffic and player behavior on illegal gambling sites, helping to inform future regulatory measures. The Commission is committed to tackling the unlicensed gambling market, as it poses risks to consumer protection and undermines the legitimacy of the regulated gambling sector.

Source:

, gamblingcommission.gov.uk, July 10, 2025.

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