UK Plans to Boost Gambling Regulator Fees as Budget Tightens
The UK government is currently seeking public feedback on proposed increases to the licensing fees paid by gambling companies. This initiative is intended to ensure that the UK Gambling Commission has sufficient funding to continue regulating the gambling industry effectively amid rising operational costs.
Proposed Tiered Increase to Gambling Licence Fees
The Department for Culture, Media and Sport (DCMS) has outlined three potential strategies to raise licensing fees starting from October 1, 2026. The first proposes a 30% increase across all fees, the second suggests a 20% rise, and the third combines a 20% increase with an additional 10% surcharge earmarked specifically for combating illegal gambling and related offenses.
While the headline figures imply uniform hikes, the actual adjustments will vary depending on the type of licence. For most operators, fees will be determined based on their market share and associated regulatory risks. Conversely, licences such as General Betting Limited, External Lottery Managers, and Society Lotteries will face straightforward percentage increases.
Additionally, fees for new applications and first-year licences, currently set at 75% of the annual fee, will also increase under all proposals. Costs related to personal licences and corporate control changes are expected to rise by either 20% or 30%, depending on the chosen plan.
Funding Challenges for the UK Gambling Commission
Recent consultation documents reveal that the UK Gambling Commission has been experiencing budget shortfalls for several years. Increased expenditure on enforcement efforts, the implementation of reforms from the Gambling Act review, and enhancements to data capabilities have depleted its financial reserves. Last year, the regulator withdrew over GBP 3 million from its savings, with plans to spend an additional GBP 5 million in 2025–26, significantly reducing its financial buffer.
Without fee increases in 2026, the Commission anticipates running out of funds within the next year. Projections indicate that by 2030, annual deficits could exceed GBP 9 million if no action is taken.
Concerns Over Concurrent Industry Cost Increases
The proposed fee hikes are raising concerns among operators, especially as they coincide with substantial tax increases announced in the recent Autumn Budget. Starting in April, the remote gaming duty is set to nearly double, and the general betting duty will increase in 2027.
Future Regulatory Fee Framework Changes
The DCMS has also suggested potential reforms to the fee-setting process. Instead of requiring ministerial approval for each change, the government aims to grant the UK Gambling Commission greater autonomy to adjust fees independently, similar to regulatory bodies like Ofcom and the Financial Conduct Authority.
The consultation period will remain open until the end of March, allowing industry stakeholders to provide feedback on both the proposed fee increases and the prospective overhaul of the funding structure.
