Regulatory
Disgorgement
Reviewed by iGaming Times editorial teamLast reviewed 24 September 2026
What is Disgorgement?
A remedy requiring a party to give up money obtained through unlawful conduct. It is restorative rather than punitive, aimed at removing a gain rather than imposing a fine.
Key takeaways
- Disgorgement requires a party to give up money obtained through unlawful conduct; it removes a gain rather than imposing a punishment.
- Unlike an injunction, it reaches back to the start of the conduct, so exiting a market does not end the exposure.
- Gaming regulators also use it alongside civil penalties to strip value from activity that should never have been accepted.
Why it matters
Disgorgement changes the economics of operating while litigating. Injunctions and daily penalties are forward looking, so an operator facing them can exit a market and stop the meter, keeping everything earned up to that point. Disgorgement reaches backwards to the start of the conduct and is unaffected by a later withdrawal.
That makes it the remedy to watch in enforcement against unlicensed or contested operators. A state seeking only an injunction is asking a business to stop; a state seeking disgorgement is asking it to pay for the period in which it did not. Where a company does not report revenue by jurisdiction, quantifying the sum becomes a substantial dispute in itself.
Gaming regulators also use disgorgement alongside civil penalties in ordinary licensing matters, typically to strip value connected to accounts or activity that should never have been accepted.
The bottom line
A fine punishes conduct and an injunction stops it. Disgorgement removes the reason it was profitable, which is why it is the remedy operators should price most carefully.
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Frequently asked questions
What is disgorgement?
Disgorgement is a remedy that requires a party to give up money obtained through unlawful conduct. It is restorative rather than punitive: its purpose is to remove the gain, not to impose a fine. Courts and regulators use it so that a business cannot keep the profits of activity that should not have happened.
What is the difference between disgorgement and a fine?
A fine punishes conduct, while disgorgement removes the profit the conduct produced. An injunction, by contrast, only stops conduct going forward. Because disgorgement reaches back to the start of the conduct, an operator that exits a market can stop daily penalties accruing but cannot escape a claim for what it has already earned.
Why does disgorgement matter for gambling operators?
It changes the economics of operating while litigating. A state seeking only an injunction is asking a business to stop; a state seeking disgorgement is asking it to pay for the period in which it did not. Where a company does not report revenue by jurisdiction, quantifying the sum can become a substantial dispute in itself.