Gambling Commission License Fees Set for 25% Increase in October 2026

The Department for Culture, Media and Sport (DCMS) has confirmed that most Gambling Commission license fees will increase by 25%, with the new rates taking effect from October 1, 2026. This decision follows an earlier consultation and aims to address the regulator's financial challenges and support enhanced enforcement capabilities.

The DCMS revealed that the fee adjustment is critical to prevent significant reductions in the Gambling Commission’s regulatory functions. The regulator currently faces an annual budget deficit of approximately £4 million, and even with the proposed 25% uplift, an additional £8 million in efficiency savings will be required over the next five years. The department reiterated that license fees are calculated to cover the Commission's operational expenses, with the updated structure adjusting charges relative to an operator's activity or market share.

The finalized plan comes after a public consultation conducted between January 27 and March 30 this year, which gathered 47 responses, primarily from gambling operators, suppliers, and sector representatives. The DCMS initially put forward three different proposals – increases of 20%, 30%, or a 20% rise with an extra 10% specifically for illegal market enforcement. However, following considerable feedback from the industry, these initial options were discarded in favor of the standard 25% increase across the majority of license categories.

This broad increase will apply to various charges, including operating licence fees, application fees, first annual fees, personal licenses, variations, and corporate control changes. Supplementary operating licence fees and single machine permit fees are also subject to the 25% rise, and first annual fees will continue to be set at 75% of the full annual amount.

Not all sectors will see an increase. Fees for society lotteries, along with ancillary society lottery licenses, will remain unchanged. This exemption is intended to ensure that funds available for charitable causes are not diminished. For on-course bookmakers, the fee model for general betting (limited) operating licenses will transition from being based on operating days to a market share framework, measured by gross gambling yield (GGY). This shift is anticipated to result in lower fees for 44% of operators in this category, while 53% are expected to experience only modest increases, typically around £22.

Regarding the illegal gambling market, the DCMS decided against ringfencing a portion of the increased fees for enforcement. Instead, the Gambling Commission will continue its strategy to combat illicit operations with a separate three-year funding commitment of £26 million provided by HM Treasury. For major operators with annual GGY exceeding £100 million, fees are projected to rise from roughly 0.1% to approximately 0.15% of GGY. Furthermore, large remote and non-remote operators could see their annual fees reach six figures or more, reflecting their significant market presence.

The industry expressed widespread opposition to any fee increases during the consultation period. Concerns raised included the cumulative financial strain from recent duty changes and the upcoming statutory levy, questions about the proportionality of flat percentage increases for lower-harm activities, and the funding mechanisms for illegal gambling enforcement. Despite these reservations, Bethan Lloyd, a senior associate at Wiggin LLP, commented earlier this year that while the additional fees would be challenging, they were "not going to be the straw that breaks the camel’s back." These changes will be legally enacted through secondary legislation.