UK Government Proposes Significant Increase to Gambling Commission Fees
Ministers have launched a consultation on options to raise fees for operators to shore up the Gambling Commission’s finances from October 1, 2026.
LISTEN TO THIS ARTICLE:The Department for Culture, Media and Sport (DCMS) has published a consultation presenting three fee-rise scenarios designed to replenish the Gambling Commission’s depleted reserves and cover rising regulatory costs. The consultation, which runs until March 30, 2026, proposes that any uplift would take effect on October 1, 2026.
The three options set out are: a 30% uplift to annual licence fees; a 20% uplift across the board; or a 20% increase combined with a further 10% levy earmarked for action against illegal gambling. The papers make clear adjustments would not be uniformly applied: some licence types and operators would face tailored changes based on licence class, market share, and assessed regulatory risk. Certain categories, including General Betting Limited, External Lottery Manager and Society Lotteries licences, would be subject to a simple percentage rise.
Application fees and first-year annual fees – currently charged at 75% of annual fees – would also increase under all three proposals. Fees for personal licences and corporate applications would rise by either 20% or 30%, depending on the option selected.
DCMS frames the move as a corrective measure after the last fee review in 2021, during which the regulator expanded activity in areas such as illegal market disruption, delivery of reforms stemming from the Gambling Act Review White Paper and investment in data and compliance capabilities. That expansion has produced successive annual deficits and eroded the Gambling Commission’s reserves: the consultation notes a £3.1m drawdown in 2024-25 and forecasts a further £5m used in 2025–26, leaving the regulator close to a stated minimum reserve of £4m.
“Without a fee uplift in October 2026, the Commission’s reserves are expected to be completely exhausted during the 2026–27 financial year”, the consultation paper warns, adding that projected deficits could reach £7m in 2027–28 and rise to £9.5m by 2030–31 if no change is made.
The documents also propose a procedural change to the fee-setting framework. At present, licence fee changes must be implemented by a statutory instrument via the Secretary of State for Culture, Media and Sport. DCMS proposes to remove that requirement and allow the Gambling Commission to consult and enact fee adjustments directly, bringing fee powers into line with other regulators such as Ofcom and the Financial Conduct Authority.
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Industry Reaction and Next Steps
The timing of the consultation is likely to amplify industry pressure, coming while operators are already preparing for significant tax increases announced in the Autumn Budget. From April, remote gaming duty is scheduled to rise sharply from 21% to 40%, with general betting duty also set to increase to 25% in April 2027. Operators have signalled a mix of responses, including cost absorption, price rises for consumers and headcount or operational reductions.
“Operators are being squeezed on multiple fronts – higher taxes, growing compliance costs and now the prospect of materially larger regulator fees”, said Sarah Johnson, regulatory partner at IGA Consulting. “A predictable, risk-reflective fee model is essential, but the government must consider sequencing and cumulative impacts so the sector can plan effectively.”
Mark Reynolds, finance director at a mid-sized betting group, added: “We support proportionate funding of the regulator, particularly where money targets illegal operators, but a 30% uplift imposed at once would force difficult strategic choices. It is crucial that DCMS and the Commission provide clarity on how increases will be apportioned by licence type.”
Respondents to the consultation will be asked to provide data on licence composition, costs of compliance and views on the proposed governance change. The consultation’s outcome will determine the final charge model and whether the Commission gains the greater autonomy to set fees. If ministers proceed with an uplift, operators should expect formal notification ahead of the October 1, 2026, implementation date and to see detailed fee schedules published alongside the decision.
For now, the industry faces a compressed window to respond; stakeholders have until March 30 to submit evidence and comment, after which DCMS and the Gambling Commission will consider next steps ahead of a decision later in 2026.
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