£156.59 Million in Fines Imposed on UK Betting Companies by the Gambling Commission since 2016
Olivia Cole 
The gambling industry in the United Kingdom is facing ever-increasing financial penalties imposed by the regulator at a time when many companies are reporting lower revenues owing to the restrictions introduced during the COVID-19 pandemic.
In August, the UK Gambling Commission fined Entain, the owner of Ladbrokes Coral, a record £17 million for what it described as “absolutely unacceptable” anti-money-laundering failures. The fine, the largest ever issued by the Gambling Commission, includes £14 million for failures at the company’s online business, LC International Limited, which operates 13 websites. The remaining £3 million is to be paid by Entain’s Ladbrokes Betting & Gaming Limited, which runs 2,700 betting shops across Britain.
However, this is not the first operator to be hit with such a severe penalty. In August 2022 alone, the regulator fined four gambling operators. Along with the staggering £17 million hit to Entain’s finances, LeoVegas, Smarkets and Spreadex also received penalties totalling more than £3 million. The previous record fine was imposed in April 2020, when Caesars Entertainment was ordered to pay £13 million.
Increase in Penalties by the UKGC
Over the past few years, the Gambling Commission has steadily increased the fines and sanctions it imposes. Multiple operators have received severe penalties for failures to comply with the regulator’s Licence Conditions and Codes of Practice. Others have even had their licences revoked. These developments stem from the new enforcement strategy unveiled by the Commission in July 2017.
Within that strategy, the regulator introduced higher penalties for breaches, particularly for repeated failings. It also made it clear that systemic failures to comply with the Codes of Practice would prompt an in-depth investigation and licence review. In 2018, gambling firms paid more than £28 million in penalties for failing to monitor money-laundering practices properly and to provide fair, responsible gambling to their customers. This was an increase from £10.65 million in 2017 and a significant surge from £4.1 million in the previous year.
However, 2022 has so far been the toughest year in terms of financial sanctions. So far, companies have received more than £43 million in penalties, according to official data published by the industry regulator. In addition, the Gambling Commission has suspended multiple licences, including those of Addison Global Limited, Triplebet, Stakers Limited, Multi-Media Entertainments Limited, Dynamic and Sportito.
Gambling Revenues Drop for Most Sectors
The lockdown and the many restrictions imposed during the COVID-19 pandemic have had a significant impact on the gambling industry, with many sectors still affected by the closures. While land-based businesses were hit hardest in 2020, the restrictions also affected live sporting events and, as a result, the remote sector. The total Gross Gambling Yield (GGY) stood at £14.1 billion in 2020, down 1.4% from 2019 and 2.1% from 2018.
Statistics for April 2020 to March 2021, however, are incomplete, as some operators did not submit data for the period; they cover Remote Casino, Betting and Bingo (RCBB) and the National Lottery. According to the available figures, the total GGY of the Great Britain gambling industry was £12.7 billion, an 11% decrease from April 2019 to March 2020. The land-based sector reported a steep drop in total GGY of 62.5% compared with the previous period. Physical casinos, betting shops, arcades and bingo halls generated only £1.7 billion. Remote businesses, on the other hand, reported an 18.4% increase to £6.9 billion.
Figures for 2022 also show a drop in revenues. The total GGY in June decreased 13.2% from May to £370.2 million, with most sectors seeing declines. Within remote gambling operations, esports betting was the only exception, reporting revenue growth of 38.3% to £924,300. The Gambling Commission has not yet published statistics for the entire period.
The Toughest Sanctions for Gambling Operators
The list below ranks the gambling operators that have received the toughest sanctions from the Gambling Commission. Please note that only penalties of £1 million or more are included. Also bear in mind that some of the firms have since been sold to other operators or merged with other companies. William Hill, for instance, was acquired by Caesars Entertainment in 2021, and in July 2022, Caesars sold William Hill’s European assets to 888 Holdings. We have ranked the operator independently because it was fined by the UKGC before the acquisition.
