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  3. 2023 Consultation on proposed changes related to financial penalties: Consultation Response

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.

Published
10 July 2025

Last updated
10 July 2025 - Changes

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Contents

Proposal 12: Step 3 - Mitigating and aggravating factors

Under Step 3 we proposed that the consideration of mitigating and aggravating factors be a distinct step, separate from the consideration of those factors associated with determining seriousness of the breach. The proposal included the separation of the Gambling Commission’s consideration of how the licensee responds to the breach in terms of their own actions and how they engage with the Commission during the investigation of the breach, from the seriousness of the breach itself.

We sought views on:

  • the proposed approach to provide clarity and transparency on the factors which may contribute to increasing or decreasing the sum of the financial penalty
  • separating this from the process for determining the starting point for the penalty at Step 2
  • the proposed lists of mitigating factors and aggravating factors.

We also asked for general comments.

Consultation questions

Questions 41 to 43, as detailed in Annex 2, related to this document.

Respondents' views

Of the respondents who responded to the consultation, none disagreed with the proposed approach to provide clarity and transparency on the factors or with the proposal to consider aggravating and mitigating factors as a separate step to the consideration of the seriousness of the breach. The Commission is grateful for the detailed feedback from respondents regarding the aggravating and mitigating factors themselves and the way they were worded in the proposed version of the Statement of Principles for Determining Financial Penalties (SoPfDFP) set out in the consultation document.

Our position

We have considered the comments raised by stakeholders in the consultation responses and have not made any substantial changes to the wording of paragraphs 2.22, 2.23, 2.24 and 2.25 of the amended SoPfDFP. However, we have added an additional factor at paragraph 2.23.

Final wording

This requirement will come into force on 10 October 2025.

Paragraphs 2.22 and 2.25 of the amended SoPfDFP

Step 3: Mitigating and aggravating factors

2.22. The Commission may increase or decrease the sum calculated at Step 2, to take into account factors which aggravate or mitigate the breach.

2.23. The following list of factors may have the effect of aggravating the breach (this list is not exhaustive):

2.23.1. whether there has been a repeated breach or failure by the licensee or other licensees within the same group of companies

2.23.2. whether the licensee had previously undertaken to carry out a particular course of action but did not

2.23.3. whether the breach arose in circumstances that were similar to previous cases the Commission has dealt with which resulted in the publication of guidance such as ‘Public statements’ or guidance documents alerting the wider industry.

2.23.4. the licensee’s regulatory history (such as previous sanctions imposed, whether the licensee has been through the special measures process defined within the Licensing, compliance and enforcement policy (LCE)

2.23.5. the failure to take action at pace to address the failings after becoming aware of the commencement of the Commission’s investigation

2.23.6. the deliberate targeting of a vulnerable group of consumers

2.23.7. any attempt to conceal relevant information or provide misleading information to the Commission’s investigation team

2.23.8. where illegal markets activity has been identified (such as supply chain failures by B2B or B2C operators) 2.23.9. any other factor deemed relevant and not already considered at Step 2.

2.24. The following list of factors may have the effect of mitigating the breach (the list is not exhaustive):

2.24.1. appropriate action was taken to resolve the breach shortly after it was identified, and it was resolved in a timely manner

2.24.2. the extent of steps taken to address or remedy the breach and ensure future similar failings were prevented

2.24.3. the licensee’s early and voluntary reporting of the breaches to the Commission

2.24.4. timeliness and degree of co-operation the licensee showed with any investigation undertaken by the Commission.

2.24.5. any other factor deemed relevant and not already considered at Step 2.

2.25. Having considered any aggravating and mitigating factors, the Commission will consider whether it is appropriate to increase or decrease the starting point for the penal element calculated at the end of Step 2 by an appropriate sum.

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Proposal 11: Step 2 (b) - Determining the starting point of the penal element of the fine Next section
Proposal 13: Step 4 - Adjustment for deterrence
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