UK Gambling Licence Fees Rise 25 Percent From October

Great Britain gambling operators will face higher regulatory costs from Oct. 1, 2026, after DCMS confirmed a 25 percent rise in most Gambling Commission licence fees.

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Good to know

Most operating licence fees will rise by 25 percent.

Society lottery licence fees will stay frozen.

On course bookmakers will move to a gross gambling yield based fee model.

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DCMS Picks 25 Percent After Rejecting Consultation Options

The Gambling Commission has a funding problem. DCMS says the regulator runs an annual budget deficit of around £4 million, equal to about $5.36 million, and still needs at least £8 million, or about $10.72 million, in savings over the next five years.

Operators will cover part of that gap through higher fees. The final 25 percent increase came in below the 30 percent level first raised during consultation. DCMS ran that process from Jan. 27 to March 30, 2026, and received 47 responses, mostly from operators, suppliers, and trade groups.

Three models went out for comment: a flat 30 percent rise, a flat 20 percent rise, and a 20 percent rise with another 10 percent ringfenced for illegal gambling work. Only two respondents backed the 30 percent option. None supported the ringfenced model. DCMS then settled on a standalone 25 percent rise without ringfencing.

The increase will apply to personal licences, supplementary operating licences, single machine permits, licence variations, and changes of corporate control. First annual fees will remain at 75 percent of the annual rate.

DCMS also refused operator calls for a phased rollout. The department argued that licence fees remain a small share of gross gambling yield across the industry.

For operators with more than £100 million in GGY, fees will rise from around 0.1 percent to around 0.15 percent of GGY. Operators with £10 million to £100 million in GGY will see fees rise from around 0.18 percent to around 0.22 percent. More than 1,100 smaller operators with GGY below £10 million will pay less in cash terms.

The change lands during a costly period for the UK gambling sector. Operators already face reformed gambling duty rates and the incoming statutory levy for research, prevention, and treatment.

On course bookmakers get a separate change. General betting limited licence holders will no longer pay based on days of operation. They will pay based on GGY. The lowest band previously paid £230, or about $308, for one to 75 days of operation. From Oct. 1, 2026, the lowest band will pay £252, or about $338, for operators with less than £100,000 in GGY.

DCMS says 44 percent of operators in that category will pay less under the new model. Another 53 percent will see only a £22 increase.

Society lotteries avoided the fee rise because DCMS did not want to reduce money going to good causes. External lottery managers do not get that protection. As commercial businesses, they will face the full 25 percent increase.

The higher licence fees will not fund extra Gambling Commission action against unlicensed operators. That work comes from £26 million, or about $34.84 million, in separate Treasury funding over three years.

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