Consultation response
2023 Consultation on proposed changes related to financial penalties: Consultation Response
This response sets out our position in relation to the consultation on the proposed changes to the Statement of Principles for Determining Financial Penalties.
Contents
- Executive summary
- Introduction
- Summary of responses and our position
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- Proposal 1: Principles for determining financial penalties
- Proposal 2: The framework of policies and procedures
- Proposal 3: The legal framework
- Proposal 4: The scope of this document
- Proposal 5: Key considerations
- Proposal 6: The purpose of imposing a financial penalty
- Proposal 7: Criteria for the imposition of a financial penalty
- Proposal 8: Criteria for determining the quantum of a financial penalty
- Proposal 9: Step 1 - Detriment to consumers and/or financial gain to the licensee
- Proposal 10: Step 2 (a) - The seriousness of the breach to determine the starting point of the penal element
- Proposal 11: Step 2 (b) - Determining the starting point of the penal element of the fine
- Proposal 12: Step 3 - Mitigating and aggravating factors
- Proposal 13: Step 4 - Adjustment for deterrence
- Proposal 14: Step 5 - Discount for early resolution
- Proposal 15: Step 6 - Affordability
- Proposal 16: Step 7 - Proportionality
- Proposal 17: Procedural matters, payment plans, time limits and payments in lieu of financial penalties
- Proposal 18: Indicative sanctions guidance
- Proposal 19: Impact of the proposals on protected characteristics stated in the Equality Act 2010
- Annex
Proposal 1: Principles for determining financial penalties
The wording of paragraphs 1.1 and 1.2 of the proposed version of the Statement of Principles for Determining Financial Penalties (SoPfDFP) remained the same as the wording in the existing version as stated in the consultation document. We sought views on whether the wording of these paragraphs is adequate.
Respondents’ views
Responses were mixed with most comments relating to the choice of wording and it not reflecting the purpose of the SoPfDFP or matters dealt with elsewhere in the consultation.
Our position
We have considered the comments raised by stakeholders in the consultation responses and have made minor wording and formatting changes to these paragraphs. They are not substantive changes to the proposed version.
Final wording
This requirement will come into force on 10 October 2025.
Paragraphs 1.1 and 1.2 of the amended SoPfDFP
The purpose of this statement of principles for determining financial penalties
1.1. This statement sets out the principles that the Gambling Commission (the Commission) will apply and have regard to in exercising its powers to require the holder of an operating licence or the holder of a personal licence to pay a financial penalty.
1.2. This statement of principles applies both to circumstances in which the Commission exercises its powers to impose a financial penalty under section 121 of the Gambling Act 2005 (the Act), or when the Commission is considering the matter of a payment in lieu of a financial penalty as part of a regulatory settlement with a licensee. Therefore, references to financial penalties within this document should also be read to include payments in lieu of financial penalties.
References
1 Question 16 allowed for respondents to make general comments and suggestions on Section 1 of the SoPfDFP. Comments and feedback received in response to Question 16 have been incorporated into the relevant sub-sections, where appropriate.
Proposal 2: The framework of policies and procedures
Last updated: 10 July 2025
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