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
-
- 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 14: Step 5 - Discount for early resolution
Discount for early resolution is part of the existing process for determining financial penalties, but it is considered at the same time as other factors. In the consultation document we proposed to include consideration of a discount for early resolution as a distinct step separate from the process of assessing the seriousness of the breach, and consideration of aggravating and mitigating factors, and any adjustment for deterrence.
We proposed that the level of discount to the penal element that could be applied to account for early resolution should range between 5 percent and 30 percent, in line with other regulators and criminal procedures.
We sought views on:
- the proposed approach to provide transparency around the application of any discount for early resolution
- whether this step should be separate from the process for determining the starting point of the financial penalty (Step 2), and after the step for adjustment for deterrence (Step 4)
- the proposed percentage range which may be applied to determine the level of the discount.
We also invited any other comments.
Consultation questions
Questions 47 to 51, as detailed in Annex 2, related to this document.
Respondents' Views
Of the respondents who responded to the consultation, the majority of respondents agreed with the sequencing of this step and its inclusion. Most of the respondents suggested that clarification regarding what would constitute “immediately after” the issuing of the preliminary findings would be helpful. The Gambling Commission is grateful for the feedback received from respondents.
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 2.27, 2.28 and 2.29 of the amended Statement of Principles for Determining Financial Penalties (SoPfDFP), except that we have made the following minor amendments:
- to clarify what we consider to be “immediately after the issuing of the Commission's preliminary findings” we have now specified that a discount may be applied if any admissions or disclosures leading to early resolution occurred within the 28-day period for making representations in response to the Commission's preliminary findings
- we have also amended the wording of paragraph 2.29 of the amended SoPfDFP to include “cooperation” as one of the key determining factors for determining the level of discount and made clear if the factors are present, that may influence a higher level of discount.
Final wording
This requirement will come into force on 10 October 2025.
Paragraphs 2.27 to 2.29 of the amended SoPfDFP
Step 5: Discount for early resolution
2.27. The Commission may apply a discount to the penal element if it considers there have been early and voluntary admissions and/or disclosures leading to an early resolution of the Commission’s investigation/enquiries.
2.28. If admissions and/or disclosure occur prior to, or immediately after the issuing of the Commission’s preliminary findings (within the 28-day representation period), or at an appropriately early stage in enquiries made outside of a review then a discount may be applied for early resolution.
2.29. The level of discount will range between 5% and 30% and will be assessed on a case-by-case basis. The key factors for determining the appropriate level of discount will be based on the level of insight, cooperation and speed of resolution which, if present, may influence a higher level of discount. The discount will be applied to the figure determined after Step 4.
Proposal 13: Step 4 - Adjustment for deterrence Next section
Proposal 15: Step 6 - Affordability
Last updated: 10 July 2025
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