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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 17: Procedural matters, payment plans, time limits and payments in lieu of financial penalties

These sections largely remained unchanged in the proposed version of the Statement of Principles for Determining Financial Penalties (SoPfDFP) as set out in the consultation document, except that we proposed the inclusion of an additional section on payment plans.

We sought views on:

  • the proposal to include the sections on procedural matters, time limits and payments in lieu of financial penalties
  • the proposal to include a section on payment plans, providing that the Gambling Commission will only consider payment plans in exceptional circumstances.

We also invited any other comments.

Consultation questions

Questions 57 and 58, as detailed in Annex 2, related to these sections.

Respondents’ views

The majority of respondents agreed with inclusion of these sections.

One respondent suggested that the timeframe for licensees to make representations (normally 14 days), should be extended to 28 days on the basis that this would be more feasible for smaller companies.

Most respondents disagreed with the proposal concerning payment plans. It was submitted that the proposal was too rigid, and that payment plans should be considered “where appropriate” rather than only being considered in exceptional circumstances.

One respondent commented that the list of principles concerning payments in lieu of financial penalties was inconsistent, and that it was not clear whether the responsibilities listed related to the Commission or the licensee.

Our position

The amended version of the SoPfDFP includes these sections as proposed save except that minor changes have been made to the wording and numbering of the paragraphs.

We do not agree the time frame for representations should be extended to 28 days as we consider the proposed wording, “The Commission will normally give licensees 14 days to make representations”, allows for some flexibility should the circumstances of the case require it.

We consider the acceptance of payment plans will only be done in exceptional circumstances and therefore consider changing to “where appropriate” would not accurately reflect the Commission’s approach. However, we have amended the wording the clarify what those exceptional circumstances may be.

We note the comment in relation to payments in lieu of financial penalties, in due course we will need to consider the impact of a statutory levy on the destination of payment in lieu of financial penalties and therefore not changes have been made to this section.

Final wording

This requirement will come into force on 10 October 2025.

Paragraphs 2.35 to 2.39 of the amended SoPfDFP

Procedural matters

2.35. Section 121 imposes a number of procedural steps which must be taken before the Commission can impose a financial penalty. Before imposing a requirement on a licensee to pay a penalty under this section the Commission must notify a licensee:

2.35.1. - that the Commission proposes to require it to pay a penalty

2.35.2. - of the amount of the proposed penalty

2.35.3. - of the Commission's reasons

2.35.4. - of a period within which the licensee may make representations to the Commission.

2.36. The Commission will normally give licensees 14 days to make representations, and these representations will be considered prior to a final decision being made.

Payment plans

2.37. The Commission will only agree to a payment plan in exceptional circumstances, notably where affordability concerns are so serious that the size of the financial penalty if paid immediately would have a significant impact on the viability of the licensee, and in circumstances where such an arrangement is necessary and proportionate.

Time limits

2.38. By virtue of section 121(3) of the Act, the Commission may not give a notice in respect of the breach of a condition after the end of the period of two years beginning with the day on which the breach occurred or began to occur, or, if later, the day on which the breach came to the knowledge of the Commission.

Payments in lieu of financial penalties

2.39. Payments made in lieu of a financial penalty as part of a regulatory settlement do not need to be paid into the Consolidated Fund in the same way that financial penalties imposed under section 121 of the Act do. As a result, there is more flexibility about how such monies may be used. However, the Commission will apply the following principles in approaching such agreed payments:

2.39.1. The Commission reserves the power to approve the destination of monies paid as part of a regulatory settlement

2.39.2. Licensees must not generate positive publicity from the regulatory settlement

2.39.3. Payments need to be demonstrably over and above 'normal' Research, Education and Treatment (RET) contributions, or any levy amounts due under Section 123 of the Act

2.39.4. Where practicable, the operator should return money to any identified victims

2.39.5. If victims cannot be identified or there are no victims, the monies should be given to charity for socially responsible purposes

2.39.6. Socially responsible purposes would include purposes which address gambling related harm or in some way promotes one or more of the licensing objectives

2.39.7. Where payments are made with the aim of addressing gambling-related harm, the presumption is that the money would be paid to GambleAware to be used for specific agreed purposes that accelerate their commissioning plans

2.39.8. Licensees should have no interest in organisations who will receive divested funds

2.39.9. There should be meaningful evaluation of the effectiveness of projects or research funded by specific regulatory settlements

2.39.10. Research findings must be made public to help raise standards

2.39.11. Clear timeframes should be set for payment of monies and for delivery of work paid for from those monies.

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Proposal 18: Indicative sanctions guidance
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