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Statement of principles for determining financial penalties

The Commission's statement of principles for determining financial penalties.

Published
1 June 2017

Last updated
30 October 2025 - Changes

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  1. Contents
  2. 1 - Introduction

1 - Introduction

Following the 2023 Consultation on proposed changes related to financial penalties, this guidance was updated on 10 October 2025. Information about the updates is provided within the consultation response (opens in new tab).

The purpose of this statement of principles for determining financial penalties

1.1. This statement sets out the principles that the Gambling Commission will apply and have regard to exercising its powers to require payment of a financial penalty by the holder of an operating licence or the holder of a personal licence.

1.2. This statement of principles applies both to circumstances in which the Commission exercises its powers to impose a financial penalty under section 121 of the Gambling Act 2005 (opens in new tab) (the Act), and when the Commission is considering the matter of a payment in lieu of a financial penalty as part of a regulatory settlement with a licensee. Therefore, references to financial penalties within this document should also be read to include payments in lieu of financial penalties.

The framework of policies and procedures

1.3. The Commission has developed a number of policies which govern how it carries out its statutory functions. As such this document needs to be read in conjunction with the following documents:

1.4. Section 121 of the Gambling Act 2005 (opens in new tab) 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 breached1. The Commission may impose a financial penalty following a review under section 116(1) or (2) of the Act (opens in new tab). 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.

The scope of this document

1.5. Section 121(6) of the Act requires the Commission to, among other things, prepare a statement setting out the principles to be applied by decision makers in exercising the Commission’s powers to impose financial penalties, and to have regard to the statement when exercising a power under this section. The Commission shall review this statement of principles from time to time and revise it when necessary.

References

1 It will, by virtue of section 82, include breach of a provision in a social responsibility code of practice.

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Statement of principles for determining financial penalties - Applicable principles
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