Guidance

Regulatory returns guidance

Guidance for information collected in the Regulatory Returns service by licensing sector.

Published
4 May 2021

Last updated
30 September 2024 - Changes

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Regulatory returns guidance

Reporting gross gambling yield (GGY) on regulatory returns

You need to report financial information in your regulatory returns. To report Gross Gambling Yield (GGY) correctly the stake and prize amounts must reflect only the gambling transactions that form part of the GGY calculation.

Unlike many other gambling regulators, our regulatory returns ask for figures on GGY not Gross Gambling Revenue (GGR). Operators must ensure they report GGY figures to us, not GGR.

Treatment of GGY from Northern Ireland and Crown Dependencies

As the Gambling Commission only regulates gambling in Great Britain, not the United Kingdom of Great Britain and Northern Ireland (except for The National Lottery), operators must ensure the data they submit is for their operations in Great Britain (GB) only (except where non-GB data is asked for). Northern Ireland data must not be included in GB only questions. Data for customers or operations relating to the Isle of Man, Guernsey and the Bailiwick of Jersey must also be omitted from GB only questions, as these are Crown Dependencies and not part of Great Britain.

GB and non-GB GGY

Where we ask for non-GB GGY to be reported, licensees must report any GGY from any customers outside of Great Britain from which they are deriving GGY in reliance on their Commission operating licence. GGY from non-GB customers in jurisdictions for which the licensee has a licence, or relies on a licence issued by another jurisdiction, must not be reported to us.

A GB customer is defined as a customer who is physically located in Great Britain when they use gambling facilities provided in reliance on a licence issued by us, regardless of their usual residential address. A non-GB customer is defined as a customer who is not physically located in Great Britain when they use gambling facilities provided in reliance on a licence issued by us, regardless of their usual residential address.

How to calculate your GGY

GGY is to be calculated using the following formula:

A + B - C

A is the total of any amounts that will be paid to the licensee by way of stakes in the relevant period in connection with the activities authorised by the licence.

B is the total of any amounts (exclusive of value added tax) that will otherwise accrue to the licensee in the relevant period directly in connection with the activities authorised by the licence.

C is the total of any amounts that will be deducted by the licensee in respect of the provision of prizes or winnings in the relevant period in connection with the activities authorised by the licence.

How free bets and bonuses affect annual GGY

Free bets or bonuses should only be counted when calculating GGY if the customer has the unrestricted right to opt instead to receive a cash equivalent to the value of that free bet or bonus.

As a stake (A)

If the customer uses as a stake, a free bet or bonus, which provides them with the unrestricted right to opt to receive cash equivalent to the value of the free bet or bonus, then this would fall under A in the formula.

As a prize (C)

If a prize is won in the form of a free bet or bonus which provides the customer with the unrestricted right to opt to receive a cash equivalent to the value of the free bet or bonus, then this would fall under C in the formula.

All other free bets and bonuses do not need to be recorded.

Examples of transactions

A customer stakes a £10 free bet or bonus which does not provide the unrestricted right to opt to receive cash equivalent to its value and loses the entire amount. There was £0 paid to the operator (A) and no prize awarded so £0 is paid out in prizes (C) the GGY from this transaction is £0.

A customer stakes a £10 free bet or bonus which does not provide the unrestricted right to opt to receive cash equivalent to its value and receives a prize of £20 in free bet or bonus which again does not provide the unrestricted right to opt to receive cash equivalent to its value. There was £0 paid to the operator (A) and £0 is paid out in prizes (C), the GGY from this transaction is £0.

A customer continues to stake the free bet or bonus from the second example. The customer stakes £20 in free bet or bonus, and wins a prize of £50, or a free bet or bonus which provides the unrestricted right to opt to receive £50 cash. There was £0 paid to the operator (A) and £50 paid out in prizes (C). The GGY from this transaction is -£50.

For the previous examples, you would record on your return:

£0 wagered and £0 payout

£0 wagered and £50 payout

How loyalty schemes affect GGY

Loyalty schemes such as ‘rake back’ or ‘cash back’ or similar must not be counted towards A, B or C.

These payments do not form part of a gambling transaction and are part of the costs of conducting business such as payments to affiliates for the acquisition of players.

For example, an individual might stake £100 over the course of a month and win £20. They have a cash back agreement and get 10 percent of their losses back. The GGY calculation for that player is (A = £100) – (C = £20) = GGY of £80.

The £8 the operator returns as cash back is not deducted from GGY and (on the basis it is now cash) if it is wagered the following month it would count towards the amount staked.

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Last updated: 30 September 2024

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