The Department for Culture, Media and Sport (DCMS) has confirmed a substantial increase in Gambling Commission licence fees, set to take effect on 1 October 2026. This decision, announced on Tuesday, replaces earlier proposals and introduces a standard 25% increase across most licence categories, with a few targeted exceptions, such as society lotteries.
The department's public consultation, which took place from 27 January to 30 March, produced 47 responses, mainly from gambling operators and industry representatives. The DCMS previously stated that the fee increase aims to address funding shortfalls and enhance enforcement measures against illegal operators.
This fee hike comes just months after the government reported significant tax increases, which have already added to the financial burdens on businesses.
Initially, DCMS had considered several options for fee increases, including 20%, 30%, and a combination of both plus a separate increase designated for tackling the illegal gambling market. However, after feedback from the industry, they settled on the uniform 25% increase for most fees, which will cover areas such as operating licence fees, application fees, personal licences, and corporate control changes.
While the new structure entails that first annual fees will still be charged at 75% of the full amount, supplementary operating licence fees and single machine permit fees will also see a 25% rise. Notably, fees for society lotteries will remain unchanged to protect funds designated for charitable causes.
In a significant change for on-course bookmakers, the fee structure for general betting (limited) operating licences will transition from being based on the number of operating days to a model that reflects market share determined by gross gambling yield (GGY). This adjustment is projected to lower fees for 44% of operators in that category, while 53% may see only marginal increases, averaging around £22.
Regarding the illegal gambling market, DCMS did not proceed with the Gambling Commission’s suggestion to ringfence fees specifically for this purpose. Instead, the Gambling Commission will continue executing its strategy to combat illegal operations, supported by £26 million in funding from HM Treasury over three years.
Both DCMS and the Gambling Commission stressed the necessity of the fee increases to sustain regulatory activities. The Gambling Commission has been grappling with an annual budget shortfall of about £4 million, and even with the new 25% fees, they will still need to achieve £8 million in efficiency savings over the next five years.
The DCMS reiterated that licence fees are determined on a cost-recovery basis, designed to cover the Commission’s operating expenses. The revised fee structure aligns charges with operator activity or market share. For instance, major operators generating over £100 million in annual GGY will face increases in fees from roughly 0.1% to about 0.15% of their GGY. Larger remote and non-remote operators may see their annual fees exceed six figures, reflecting their substantial market involvement.
The industry’s reaction to the fee hike has been predominantly negative, with many respondents expressing concern over the cumulative financial impact from recent duty increases and the introduction of a statutory levy. Critics also questioned the fairness of applying flat percentage increases across different activities, especially those associated with lower harm.
When the fee increase was first proposed, Bethan Lloyd, a senior associate at Wiggin LLP, acknowledged the pain associated with additional fees but remarked, “[this] isn’t going to be the straw that breaks the camel’s back.” This revised fee structure will become law through secondary legislation and is set to take effect on 1 October 2026.
