UK Plans to Boost Gambling Regulator Fees as Budget Tightens

The UK government has started asking the public what they think about raising the fees that gambling companies pay for licenses. This move aims to help the UK Gambling Commission stay afloat as it costs more to regulate the industry.

New UK Consultation Outlines Tiered Gambling Licence Fee Increases

The Department for Culture, Media and Sport (DCMS) has come up with three ways to do this, all of which would make yearly charges go up starting October 1, 2026. The first plan would push fees up by about 30% across the board. A second idea suggests a 20% bump. The third option mixes a 20% increase with an extra 10% that would go just to fight illegal gambling and related crimes.

While the headline numbers point to across-the-board hikes, the real changes would differ based on license type. Most fees would be figured out using operators’ market share and how much regulatory risk they bring. However, licenses for General Betting Limited, External Lottery Managers, and Society Lotteries would see straight percentage bumps.

Fees for applications and first-year licenses set at 75% of the yearly amount would also go up in all cases. Costs tied to personal licenses and shifts in corporate control are likely to increase by either 20% or 30%, based on the final plan picked.

Gambling Commission Warns of Funding Shortfall as Costs Continue to Rise

Based on the consultation papers, the UK Gambling Commission has been running out of money for a few years now. More spending on enforcement, putting the Gambling Act review changes into action, and better data abilities have used up its savings. The regulator spent over GBP 3 million ($4.1 million) from its reserves last year and plans to use another GBP 5 million ($6.9 million) in 2025–26, bringing its savings close to the lowest safe amount.

If fees do not go up in 2026, the Commission thinks it will run out of money next year. Looking further ahead, they could be short by more than GBP 9 million ($12.4 million) each year by 2030.

The proposed fee hikes will worry many operators, as they will happen at the same time as big tax increases already announced in the Autumn Budget. Starting in April, remote gaming duty will almost double, while general betting duty is set to go up in 2027.

DCMS also hinted at plans to update how regulatory fees are decided in the future. Instead of needing ministers to approve every change, the government wants to give the UK Gambling Commission more freedom to change charges, like the powers that regulators such as Ofcom and the Financial Conduct Authority have.

The consultation will stay open until the end of March, giving industry stakeholders a chance to share their thoughts on both the size of the increases and the suggested overhaul of the funding framework.