UK Gambling Commission
the total value of UK settlements was, until Australia’s extraordinary £55 million penalty against Star, the highest of any jurisdiction ever, albeit that this number is skewed by the £17 million agreed with Entain, itself an industry record at the time. This is not the first time the UK Regulator has led the field in enforcement settlements. In fact, over the past nine years, the UK has accounted for at least 50 percent of all settlements issued globally and in most years the figure is much higher. DATA POINTS Data published by www.gamblingindustryfines.com gives ample evidence that the UK regulator has been the most ready to resort to financial enforcement of any around the world since it unveiled a new enforcement strategy in July 2017 4 (Figure 1). It has also issued, on average, entered into large settlements than any other jurisdiction (Figure 2). ‘22 Fines £m 8.37 20.91 17.64 44.73 40.30 48.15 UK Fines 8.37 19.73 13.55 33.93 20.12 46.46 Non-UK 0 1.19 4.09 10.80 20.17 1.70 UK % 100% 94% 77% 76% 50% 96% Fig 1. Industry Fines £m, UK and non-UK fines and UK %. Source Gambling Industry Fines Year ‘17 ‘18 ‘19 ‘20 ’21
Year
‘17 ‘18 ‘19 ‘20
’21
‘22 Running avg
Avg £m 2.79 1.49 1.04 3.19 1.22 2.0
1.82
Avg UK 2.79 1.98 1.69 4.24 1.68 2.9
2.33
Avg non- UK
0 0.27 0.45 1.80 0.96 0.21
0.53
operators since 2016, the UK accounted for 61. This is more than 3.5-times the next most active regulator, Sweden, which has issued 17 fines over its history. Netherlands at 14, Australia at 8 and the US at 5 made up the next three most active enforcers (Figure 4). Fig 3. Average global, UK and non-UK industry fines in £m. Source Gambling Industry Fines
5%
8%
13%
58%
16%
UK Sweden Netherlands Australia US
The data can be subjected to further analysis on the extent to which fines have been levied against licensed versus unlicensed operators. All of the 14 fines issued by the Netherlands’ regulator, Kansspelautoriteit, were against unlicensed operators. This is perhaps unsurprising given remote gaming was not regulated in the Netherlands until 2021, but it is notable that Holland is the only country which has tried to impose fines against those operating from outside its territory. With a channelization rate of over 95 percent, it is perhaps to be expected that the UK by contrast has only reach financial settlements with operators holding UK licenses. Finally, the data reveals some of the reasons behind the enforcement, and again there are notable differences. In 2021/22 there was a shift at the Swedish regulator to focus on the protection of problem players. Prior to this point, the majority of its enforcement actions were prompted by marketing violations and specifically the offering of bonuses. Enforcement actions by the UKGC have been for a range of offences and in many instances a coverall “Social Responsibility and AML failings” has been given as the justification for settlements. What limited detail is provided Fig 4. Percentage fines issued by jurisdiction. Source Gambling Industry Fines
Year Fines
‘17 ‘18 ‘19 ‘20
’21
‘22
Total
3 14 17 14 33 24 109
UK Gambling Commission settlements accounted for over 75 percent of the global total in all but one year since 2017. In four of the past seven years, the UK accounted for over 90 percent of the financial total of all fines issued. The UKGC issued nine of the top-10 largest settlements ever and 16 of the top-20 largest overall. The UK accounts for the vast majority (30) of all 40 six-figure settlements issued globally with only Sweden (8) coming remotely close. Australia and Malta with one apiece are the only other jurisdictions to have issued £1 million+ fines. In 2022, operators entering into financial settlements in the UK were looking at, on average, a £2.9 million payout as opposed to a £211,000 average penalty outside the UK (Figure 3 opposite). The UK also dominates in terms of the numbers of settlements entered into. Of the total 109 fines levied on 8 12 16 61 UK % 100% 71% 47% 57% 36% 67% 56% Fig 2. UK Share of Global Industry Fines. Source Gambling Industry Fines UK Fines 3 10 8
4 https://www.gamblingcommission.gov.uk/news/article/gambling-commission-unveils-new-enforcement-strategy.
IMGL Magazine • November 2022 • 29
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