UK Weighs 30% Gambling Licence Fee Increase

The UK government is reviewing changes to the licence fees paid by gambling operators, with proposals that could increase annual charges by up to 30 percent. Consultation papers released by the Department of Culture, Media and Sport outline the options under consideration and set out the financial position of the UK Gambling Commission.

Good to Know

• Licence fees fund most of the UK Gambling Commission operating budget
• Without changes, regulator reserves are projected to run out in 2026 to 2027
• Any increase would not take effect until October 2026

Consultation documents published by DCMS show three potential approaches to raising licence fees paid by gambling operators. Each option aims to stabilise the finances of the UK Gambling Commission, which has warned that current funding levels are no longer sufficient to support its workload.

One proposal involves a flat 30 percent increase across all licence categories. The Gambling Commission supports this option, arguing it would allow current enforcement, data analysis, and stakeholder engagement work to continue without reduction.

A second option sets a 20 percent increase. Under that scenario, the regulator estimates it would still need to cut spending sharply. The documents indicate savings of £15.8 million would be required over six years, including a reduction of around 10 percent of staff and a near end to proactive action against unlicensed operators.

The government favours a third approach. That plan also produces a headline increase of 30 percent, but structures it differently. Twenty percent would apply across licence fees, with an additional 10 percent ring fenced specifically for tackling illegal gambling activity.

Under the preferred government model, roughly £2.6 million per year would be reserved for enforcement work linked to the illegal market. That funding would support investigations into match manipulation, suspicious betting patterns, and unlicensed operators. Recent cases referenced in the documents include betting linked to the 2024 UK general election and irregular activity in horse racing markets.

Even with that structure, the consultation papers note the Commission would still need to redirect between £1.4 million and £1.5 million each year from other functions and deliver efficiency savings elsewhere.

The financial pressure on the regulator has built steadily since the last fee review in 2021. Since then, costs have increased due to wider enforcement activity, work connected to Gambling Act reforms, expanded action against illegal gambling, and inflation.

A Funding Gap

Budget figures in the documents show the Commission used £3.1 million from reserves during the 2024 to 2025 financial year. A further £5 million drawdown is forecast for 2025 to 2026. Annual income currently stands at £27.9 million.

“Forecasted costs will increase in future years, and without a fee uplift in October 2026, the Commission reserves are expected to be completely exhausted during the 2026 to 2027 financial year,” the consultation document says.

Without higher fees, the regulator projects a £7 million deficit in 2027 to 2028. That gap would widen to £9.5 million by 2030 to 2031.

The consultation highlights the scale of current enforcement work. During 2024 to 2025, the Commission issued 516 cease and desist notices and supported the removal of 95,705 illegal gambling URLs.

Alongside fee reform, gambling operators face higher tax obligations over the next two years. Remote gaming duty is scheduled to rise to 40 percent from April 2026. A new 25 percent general betting duty for remote gambling is due to follow in April 2027.

Industry groups argue that rising costs could push customers toward unlicensed operators. Research cited from Yield Sec estimates illegal online gambling now accounts for close to 10 percent of the UK market.

In the November Budget, the government committed £26 million over three years to support efforts against illegal gambling. That funding sits alongside the proposed licence fee changes rather than replacing them.

The consultation also proposes a structural change to how fees are set. Under the plan, the DCMS Secretary of State would no longer need to enact licence fee changes through secondary legislation. Instead, the Gambling Commission would consult directly with industry and implement changes itself, aligning its powers more closely with regulators such as Ofcom and the Financial Conduct Authority.

The consultation period runs until March 29. Any approved changes would come into force on Oct. 1, 2026.

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