UK Gambling Commission Annual Report Reveals Significant Costs and Progress in Gambling Regulation

January 8, 2026
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Overview of the UK Gambling Commission’s Transitional Year

The UK Gambling Commission (UKGC) has released its annual report for 2024/25, highlighting a year filled with substantial challenges as it broadened its regulatory duties amid rising expenses and heightened political attention. Two major developments defined this period: the transfer of the National Lottery’s fourth license to Allwyn UK, and the ongoing rollout of reforms linked to the Gambling Act review.

Substantial Increase in Operational Costs

The financial burden on the UKGC grew remarkably during this time. The commission’s operating expenses surged to GBP 60.3 million (approximately $81 million), marking a 49% increase from the previous year. One of the main drivers behind this rise was staff expansion, with employee numbers climbing by over 11% to reach 416 employees by March 2025. Correspondingly, payroll expenses escalated to GBP 27.8 million (around $37 million), up from GBP 24 million the year before.

Despite these heightened expenditures, the UKGC concluded the fiscal year with GBP 10.9 million (about $14.6 million) in financial reserves. While income from license fees edged up slightly to GBP 27.9 million (nearly $37.5 million), this income alone did not cover the increased costs. Additional funding, mostly linked to National Lottery responsibilities, amounted to GBP 29.1 million—more than double the previous year’s figure—helping to narrow the financial gap.

UKGC Chief Executive Officer Andrew Rhodes expressed optimism, viewing the year as a foundation for significant future progress in consumer protection and crime prevention. However, the Commission continues to face ongoing legal disputes initiated by The New Lottery Company regarding the fourth license award, with proceedings having begun in October 2025.

Commitment to Enhancing Customer Protection

The regulator took a stronger stance on enforcement, undertaking 24 enforcement actions that resulted in GBP 4.2 million (approximately $5.6 million) in fines. It also sent over 500 cease-and-desist notices to unlicensed operators and issued hundreds of warnings to affiliated parties. Over 95,000 illegal gambling websites were taken down as part of a more assertive approach to combatting unauthorized digital gambling activities.

“We have continued to make significant progress in tackling illegal online gambling through our upstream work with third parties in finance, payment services, and internet service providers.”

Andrew Rhodes, UKGC CEO

Regarding compliance, the report shows mixed results: about one-third of licensed operators received a ‘good’ rating for consumer protection, nearly 40% were rated as satisfactory, while almost 20% exhibited major shortcomings. In the area of fairness and transparency, the Commission reported better outcomes, with over 73% of licensees achieving good ratings.

“The substantial work done in 2024-25 gives the Commission a great opportunity to make further steps forward in our work to make gambling safer, fairer, and crime-free.”

Andrew Rhodes, UKGC CEO

Looking Ahead: Future Priorities for the Regulator

Looking forward, the UKGC intends to maintain its momentum, focusing on finalizing the White Paper reforms, tightening marketing regulations, and improving customer support services. After a demanding year in 2025, the Commission aims to translate its investments into tangible improvements in safety, fairness, and public trust throughout the gambling industry.