UK Gambling Commission Annual Report Highlights Costly Transition
The UK Gambling Commission says 2024/25 was a costly year of transition as it expanded duties while facing higher costs and mounting legal challenges.
LISTEN TO THIS ARTICLE:The regulator reported operating expenditure of GBP 60.3 million for 2024/25, a 49% increase on the previous year, driven primarily by higher staff numbers and associated costs. Employee headcount rose more than 11% to 416 by the end of March 2025, and staff costs climbed to GBP 27.8 million. Despite the spending surge, the Commission closed the year with reserves of GBP 10.9 million.
Revenue from license fees edged up to GBP 27.9 million but remained well short of covering the expanded budget. A substantial grant-in-aid payment of GBP 29.1 million related to National Lottery responsibilities helped narrow the shortfall; the amount drawn from government sources was more than double the previous year. The annual report also flags rising legal bills, reflecting the regulator's elevated enforcement and litigation workload during the period.
The year was shaped by the transfer of the National Lottery's fourth licence to Allwyn UK, and a subsequent legal challenge from The New Lottery Company. That dispute, and related litigation, has proved costly: the challenge over the licence award has been litigated through late 2025, underscoring the financial and reputational stakes the regulator now faces. Regulatory officials acknowledge the strain of defending complex procurement and licensing decisions while advancing reforms recommended by the Department for Digital, Culture, Media & Sport (DCMS) Gambling Act review.
Andrew Rhodes, chief executive of the UK Gambling Commission, said: "The investments we made in 2024/25 were necessary to meet our growing responsibilities. We have strengthened our teams, tightened processes and laid the groundwork to improve consumer protection and reduce criminality. We now must translate those investments into measurable outcomes for people who use gambling products."
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Operationally, the Commission stepped up enforcement. In 2024/25, it brought 24 formal enforcement cases, levying GBP 4.2 million in financial penalties, and issued more than 500 cease-and-desist notices to unlicensed operators. The regulator also removed over 95,000 illegal gambling URLs and issued hundreds of warnings to affiliate marketers as part of a more aggressive upstream enforcement strategy that works with banks, payment providers and internet service companies.
The report provides a mixed picture of licensee compliance. Approximately one-third of operators earned a "good" rating for consumer protection, nearly 40% were judged "satisfactory", and almost 20% showed "significant deficiencies" that require remedial action. Performance was stronger in meeting fair and open market requirements, where more than 73% of licensees secured top ratings.
Industry observers say the Commission's sharpened enforcement is necessary but resource-intensive. Mark Johnson, an independent gambling policy consultant, said: "Tighter upstream work and collaboration with finance and payment sectors is the right approach to choke off illegal online activity, but it does push up running costs. The Commission needs a sustainable funding model if it is to keep this momentum without undermining other regulatory functions."
What to Watch in 2026
Looking ahead, the Commission lists completing the White Paper reforms, strengthening marketing controls and improving customer care as immediate priorities. How those objectives are implemented will determine whether the agency converts its 2024/25 investments into sharper protections and lasting reductions in harm. Key indicators to monitor include the outcome of ongoing litigation over the National Lottery licence, trends in legal and enforcement spending, and whether future government funding or revisions to the licence-fee model are proposed to stabilise the regulator's finances.
For sector stakeholders, the report is a reminder that the regulator is rebalancing its role: protecting consumers and policing illegal activity while managing the political and financial costs of a high-profile reform agenda.
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