The Department for Culture, Media and Sport (DCMS) has revealed a new package of increases to Gambling Commission licence and application fees, set to take effect on 1 October 2026. Announced on Tuesday, this decision replaces three earlier proposals, resulting in a standard 25% increase across most licence categories, with a few exceptions for specific areas like society lotteries.
A public consultation held from 27 January to 30 March gathered 47 responses primarily from gambling operators and industry representatives. In January, the DCMS indicated that any fee increases would help address funding shortages and bolster enforcement against illegal operators.
This announcement follows recent government tax hikes that have notably increased business costs. Initially, the DCMS considered fee rises of 20% and 30%, along with an additional 10% earmarked for tackling the illegal gambling market. However, after feedback from stakeholders, the department settled on a straightforward 25% rise.
The increase will apply to various fees, including operating licence fees, application fees, personal licences, and fees related to corporate control changes. First annual fees will remain charged at 75% of the total annual fee, and both supplementary operating licence fees and single machine permit fees will see a 25% increase.
Notably, fees for society lotteries will remain unchanged to support funds for good causes, and fee adjustments for ancillary society lottery licences will also stay at current levels.
For on-course bookmakers, the structure for general betting (limited) operating licences will transition from a model based on operating days to one determined by market share as measured by gross gambling yield (GGY). This shift is expected to decrease fees for 44% of operators in that category, while 53% will experience only modest increases, generally around £22.
DCMS also declined a request from the Gambling Commission to ringfence fees aimed at combating the illegal gambling market. Instead, the Commission will continue its enforcement strategy supported by a £26 million funding commitment from HM Treasury over three years.
Both DCMS and the Gambling Commission underscored that the fee increase is vital for maintaining regulatory activities. The regulator faces an annual budget deficiency of roughly £4 million and will need to find another £8 million in efficiency savings over the next five years to remain viable.
DCMS reiterated that licence fees are calculated to recover costs, meaning adjustments are made based on operator activities. For instance, larger operators with annual GGY exceeding £100 million will see a fee increase from about 0.1% to 0.15% of their GGY. Larger remote and non-remote operators could face annual fees in the six figures, reflective of their larger market footprint.
Industry feedback indicates strong opposition to fee hikes, with concerns raised about the cumulative pressure from recent duty changes and the introduction of a statutory levy. The method of applying flat percentage increases to lower-risk activities and funding for illegal gambling enforcement also drew criticism.
When the fee increase was first announced, Bethan Lloyd, a senior associate at Wiggin LLP, remarked that while the additional fees would be challenging, "[this] isn’t going to be the straw that breaks the camel’s back." The fee changes will be formalized through secondary legislation before they come into effect on 1 October 2026.
