UK Launches New Anti-Fraud Rules Impacting Betting Firms

A major change to corporate liability rules began on 1 September 2025, as the Economic Crime and Corporate Transparency Act 2023 (ECCTA) created a new offense: failure to prevent fraud. This law focuses on big companies that profit from fraudulent acts committed by their employees, agents, or subsidiaries.

UKGC Points Out New Business Fraud Rule Affects Gambling Industry

The UK Gambling Commission sent a notice to licensed gambling operators asking them to check their fraud prevention methods because of this new law. While the law affects large businesses, regulators pointed out that the ideas in government guidelines also show good practices for smaller companies trying to reduce fraud risks.

The new law allows for the prosecution of a company if someone working for it commits fraud to benefit the organization or its customers. This includes dishonest sales tactics, falsified records, or market manipulation. The company can be held responsible even if its leaders did not know about the wrongdoing.

Government officials say this law aims to change company culture much like the 2010 bribery law did. The ministers explain that this act is part of a bigger plan to fight fraud, which now makes up about 40% of all reported crime in England and Wales.

Watchdogs Press Businesses to Boost Safeguards as Fraud Clampdown Begins

The Home Office guidance released toward the end of 2024, spells out concrete actions businesses can adopt to shield themselves. These include well-defined anti-fraud policies, routine risk evaluations, and balanced control systems. Companies that can show they had sensible measures in place when an incident occurred might be able to build a legal defense.

Executives in the industry and watchdogs have cautioned businesses that brushing off these duties could lead to major problems. The Serious Fraud Office has hinted that firms that do not act face a greater chance of criminal probes and hefty money penalties. Courts will set fines based on each case’s details, looking at the company’s size, funds, and effect on the public.

For gambling operators, the Commission restated that it expects licensees to have strong systems to ensure that gambling does not help criminal activity. The Commission told businesses unsure about how the offense affects them to get expert legal advice right away.

Now that enforcement powers are in effect, groups in all sectors should check their risk and beef up their protections.