The Gambling Commission has clarified that a new process for determining penalties and fines will see society lotteries judged differently to other gaming firms.
H1 2025 has seen, as usual, a number of enforcement actions against licenced betting and gaming firms in the UK, none of which were lottery companies.
Lottery providers are still at risk of incurring regulatory investigation should they breach anti-money laundering or social responsibility standards, however – but the extent of penalties will be judged differently.
The Commission stated that its new process for determining enforcement actions will see penalties against betting and gaming firms judged as a percentage of gross gaming yield or other income at the time the offence occurred.
The extent of a fine will also be determined based on five levels of seriousness, which will be decided during a seven step process. Society lotteries will not be subject to the GGY stipulation, however, though it has not yet been confirmed how penalties against these companies will be determined.
John Pierce, Commission Director of Enforcement and Investigations, said: “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.”
Society lotteries are a distinct part of the UK gaming ecosystem, but are held to a separate standard to bookmakers and casinos in a number of areas. Notably, society lotteries do not need to hold a UKGC licence, instead registering with a local licence authority.
This divide has caused some tensions in the past, with betting and gaming operators sometimes calling for society lotteries to be held to similar standards to themselves in areas like player protection.
Recent developments have seen the government eye up the prospect of relaxing some restrictions on society lotteries, however. This could see the £50m annual limit on society lottery ticket sales doubled to £100m, though the government has noted that this could have a detrimental impact on the National Lottery.