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 3: The legal framework
The wording of paragraph 1.4 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, except that the Gambling Act 2005 is referred to as “the Act”. We sought views on whether the wording of this paragraph, as proposed, is adequate.
Respondents’ views
Responses were mixed with most comments suggesting that the wording should be amended to mirror section 121(5) of the Gambling Act 2005 (the Act) accurately.
Our position
We have considered the comments raised by stakeholders in the consultation responses and have made minor changes to the wording to ensure consistency with the Act. They are not substantive changes to the proposed version of the SoPfDFP.
Final wording
This requirement will come into force on 10 October 2025.
Paragraphs 1.4 of the amended SoPfDFP
The legal framework
1.4. Section 121 of the Act provides that the Commission may require the holder of an operating licence to pay a penalty if the Commission thinks that a condition of the licence has been breached2. The Commission may impose a financial penalty following a review under section 116(1) or (2) of the Act. The Commission also has the power to impose a financial penalty without carrying out a licence review. Once a financial penalty has been imposed the Commission pays received monies into a Consolidated Fund, once it has deducted its direct costs, and a reasonable share of its expenditure which is indirectly referable to the investigation by the Commission of the matter in respect of which the penalty is imposed (whether by review under section 116 or otherwise), or the imposition and enforcement of the penalty, as set out at section 121(5)(c) of the Act.
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.
2It will, by virtue of section 82, include breach of a provision in a social responsibility code of practice.
Proposal 2: The framework of policies and procedures Next section
Proposal 4: The scope of this document
Last updated: 10 July 2025
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