UK Introduces New Anti-Fraud Legislation Impacting Betting Companies

Introduction to New Anti-Fraud Legislation

Starting from 1 September 2025, a significant update to corporate liability laws was implemented through the Economic Crime and Corporate Transparency Act 2023. This legislation introduces a new offense termed as failure to prevent fraud, targeting large companies that financially benefit from fraudulent activities carried out by their staff, representatives, or subsidiaries.

Implications for the Gambling Industry

The UK Gambling Commission has alerted licensed gambling operators to review and strengthen their fraud prevention measures in response to this new legislation. Although the law mainly applies to large corporations, the government guidelines promote best practices that can help smaller businesses also manage and minimize their fraud risks effectively.

This law enables prosecution of a company if fraud is committed by any individual associated with it to gain an advantage for the business or its clients. Examples of such fraud include deceitful sales tactics, falsification of documents, and market manipulation. Importantly, companies can face liability even if their executives were unaware of these illicit actions.

Officials emphasize that the goal of this law is to foster a cultural shift within companies, similar to the impact of the 2010 bribery legislation. This initiative is part of a broader strategy to combat fraud, which currently accounts for approximately 40% of all reported crimes in England and Wales.

Enforcement and Risk Management Guidance

Guidance from the Home Office, issued in late 2024, outlines practical steps businesses can take to protect themselves from fraud. These steps include establishing clear anti-fraud policies, conducting regular risk assessments, and maintaining effective internal controls. Companies demonstrating that they had reasonable safeguards in place at the time of an incident may be able to mount a robust legal defense.

Industry leaders and regulators warn that neglecting these responsibilities could result in serious consequences. The Serious Fraud Office has indicated that organizations failing to take appropriate action may face increased scrutiny, criminal investigations, and substantial fines. Penalties will be determined by factors such as company size, financial resources, and the public impact of the offense.

For gambling operators specifically, the Gambling Commission has reiterated its expectation that license holders maintain strong systems to prevent gambling from being exploited for criminal purposes. Operators uncertain about how the new offense applies to them are urged to seek expert legal counsel promptly.

With enforcement now underway, enterprises across all industries are advised to reassess their fraud risks and strengthen their protective measures accordingly.