The UK government is seeking public opinion on increasing the fees gambling companies pay for licenses. This initiative aims to support the UK Gambling Commission amid rising regulatory costs.
New UK Consultation Proposes Tiered Gambling Licence Fee Increases
The Department for Culture, Media and Sport (DCMS) has proposed three options, all suggesting annual fee increases starting October 1, 2026. The first option proposes a 30% increase across the board. The second suggests a 20% increase, while the third combines a 20% rise with an additional 10% to combat illegal gambling and crimes.
While overall increases are suggested, changes will vary by license type. Most fees will be calculated based on operators’ market share and regulatory risk, except for General Betting Limited, External Lottery Managers, and Society Lotteries licenses, which will see percentage increases.
Fees for applications and first-year licenses, set at 75% of the annual amount, will also rise. Personal licenses and corporate control changes are likely to increase by either 20% or 30%, depending on the chosen plan.
Gambling Commission Warns of Funding Shortfall as Costs Rise
The UK Gambling Commission has been facing financial challenges for several years. Increased spending on enforcement, implementing Gambling Act review changes, and enhancing data capabilities have depleted its reserves. The regulator spent over £3 million ($4.1 million) from reserves last year and plans to use another £5 million ($6.9 million) in 2025–26, nearing the lowest safe reserve level.
Without a fee increase in 2026, the Commission expects to run out of money next year. It could face a shortfall of over £9 million ($12.4 million) annually by 2030.
These proposed fee increases are concerning for operators, coinciding with significant tax hikes announced in the Autumn Budget. Remote gaming duty will nearly double starting in April, and general betting duty is set to rise in 2027.
DCMS also suggests updating how regulatory fees are set in the future. The government aims to grant the UK Gambling Commission more autonomy to adjust charges, similar to the powers held by Ofcom and the Financial Conduct Authority.
The consultation will remain open until the end of March, allowing industry stakeholders to express their views on both the proposed increases and the funding framework overhaul.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com