UK Consults on Potential Increase to Gambling Licence Fees

The UK government has opened a public consultation on whether to increase gambling operator licence fees, citing funding pressures at the Gambling Commission and the need to strengthen enforcement against illegal activity. The consultation, launched by the Department for Culture, Media and Sport on 27 January, will remain open until 30 March.

Under the current framework, licence fees paid by gambling operators fund the Gambling Commission’s regulatory and enforcement work. The consultation outlines three possible approaches, all of which involve raising fees to some extent. Stakeholders invited to submit responses include licensed operators, trade associations, consumer advocacy groups, local authorities, and members of the public.

According to the consultation document, the Gambling Commission requires additional funding to cover rising costs and to continue work linked to recent regulatory reforms. “Since operating licence fees were last reviewed in 2021, the commission has increased its investment in areas including disrupting the illegal gambling market, implementing reforms from the Gambling Act Review White Paper and developing its data capabilities,” the document said. “As a result of this investment and additional pressures such as inflation, the commission has operated with successive annual budget deficits and has eroded its financial reserves.”

In the UK, licence fees differ based on gambling vertical, licence type, and business size. Annual operating fees currently rely on turnover-based bands, and any increase would apply proportionally to each licence holder’s existing fee level.

For large remote casino operators generating more than £1 billion in annual gross gaming yield, current fees stand at £793,729 per year. Operators exceeding that threshold pay an additional £125,000 for every extra £500 million in revenue. The same structure applies to remote sports betting and bingo operators.

The Gambling Commission has stated that its current fee income does not fully cover the cost of its chargeable functions. To address this, the consultation sets out three options. The first, which the regulator supports, would increase annual operating licence fees by an average of 30%. The commission estimates this would generate an additional £8.7 million per year.

“This option would therefore provide the level of funding required to maintain our current work programme at a steady state, enabling it to continue to deliver its 2024 to 2027 corporate strategy and subsequent priorities,” the document said. “However, this option does not include any growth for the Gambling Commission or investment in additional regulatory functions.”

A second option proposes a 20% increase in licence fees. While this would boost funding, the Gambling Commission warned it would still face financial pressure over the medium term. Under this scenario, the regulator would need to find savings totaling £15.8 million by the 2030–31 financial year.

“The commission would need to reprioritise its work, resulting in the slowing or stopping of some areas in order to focus its resources on its statutory duties and core regulatory activities,” the document said. “Compliance and enforcement effort would need to be focused on more serious cases, meaning some suspected breaches of requirements would likely not be investigated. The commission estimates that a headcount reduction of around 10% would also be needed under this option.”

The third option, described as the government’s preferred approach, also involves a 30% overall increase but divides the additional funding into two streams. A 20% uplift would support general operating costs, while a separate 10% increase would be reserved for specific regulatory priorities. These ring-fenced funds would target areas such as illegal gambling and enforcement capacity.

Should this option be adopted, the government estimates around £2.6 million would be set aside for these targeted activities. “The funds would be used by the commission to ensure it is difficult to provide illegal gambling at scale to GB consumers,” the document said. “This is to protect consumers from the risks posed by unlicensed businesses and ensure consumer gambling spend remains with the licensed industry. It will also protect the integrity of the licensed gambling market from other criminal threats.”

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The proposed licence fee increases arrive amid broader regulatory change across the UK gambling sector. In November, the government confirmed higher tax rates for licensed operators, including an increase in Remote Gaming Duty from 21% to 40% in April. General Betting Duty for remote betting will also rise to 25% by April next year, up from 15%.

These measures have drawn criticism from some operators, trade bodies, and Members of Parliament, who have raised concerns about commercial impact and the potential growth of illegal gambling. The licence fee consultation follows the introduction of the statutory gambling levy last April and tighter rules on marketing, cross-selling, and financial vulnerability checks outlined in the Gambling Act Review White Paper.

After the consultation closes on 30 March, the Department for Culture, Media and Sport will review all submissions before deciding whether to proceed. Any approved changes would be implemented through secondary legislation, with new fee levels expected to take effect from October 2026.

Source:

“UK government considers gambling licence fee increase“, igamingbusiness.com, January 28, 2026.