British Gambling Commission outlines new 7-step approach to financial penalties
The gambling regulator said its new method for calculating fines will introduce greater clarity.
UK.- The British Gambling Commission has confirmed plans to update its approach to calculating and imposing financial penalties on gambling companies that breach its rules. It said the changes will increase the transparency of how fines are calculated.
Following a consultation earlier in the year, the regulator will update its Statement of principles for determining financial penalties to introduce greater clarity and transparency. All changes will come into effect on October 10.
According to the commission’s consultation response document, the changes include the creation of a clear and distinct seven-step process the regulator will follow when assessing and imposing a financial penalty. They also provide transparency on how it will determine the level of seriousness of the breach, introducing five levels of seriousness.
The norms also clarify how it will determine the starting point for the penal element of the penalty by reference to the seriousness of the breach and a percentage of Gross Gambling Yield (GGY) or equivalent income generated during the period of the breach. There is also an explanation of how it will make adjustments to the penalty for aggravating and mitigating factors, deterrence and early resolution.
John Pierce, director of Enforcement and Intelligence at the Gambling Commission, said: “We are making changes to strengthen the transparency and consistency of how we impose financial penalties. These proposals were subject to extensive consultation, and the views shared by all our stakeholders have been taken into account.
“The resulting changes will strengthen our decision-making and streamline the calculation of penalties – helping to improve the efficiency and effectiveness of our enforcement work. Crucially, the new approach also encourages compliance at the earliest opportunity, supporting the protection of consumers alongside fair and proportionate outcomes for operators.
“Where fines are imposed on society lotteries, registered charities or personal licence holders these will not be based upon a percentage of the GGY accrued during the breach period, rather an appropriate alternative will be used.”
This month, the Gambling Commission has already fined one online gambling operator, Taichi Tech Limited for regulatory failures, including the use of unfair terms and conditions. Trading Fafabet, the operator must pay £170,000 and will have to undergo a third-party audit to ensure it is effectively implementing its anti-money laundering and safer gambling policies, procedures and controls.
The Gambling Commission’s investigation concluded that Taichi Tech Limited breached the fair and open licensing condition by including a discretionary term allowing the operator to close customer accounts or forfeit winnings without clear justification. Such terms lack transparency and may lead to unfair outcomes for consumers, the regulator said.
The terms and conditions included a statement that read: “Fafabet have the right at their own discretion to close accounts or forfeit winnings” within bonus terms for new casino promotions.
https://focusgn.com/british-gambling-commission-outlines-new-7-step-approach-to-financial-penalties