New documents released in error by the UK government have unveiled plans to increase UK Gambling Commission (UKGC) fees.
A set of four documents were quickly taken down from the government’s website following a publication this morning, 27 January, with the page now reading: “The information on this page has been removed because it was published in error.”
The documents themselves represented a pathway towards a consultation with industry stakeholders about three potential options to raise annual gambling fees – all informed by advice and data provided by the UK Gambling Commission.
The first option looks at a potential 30% increase in the annual fee changes for licence holders, and is the option the government says is preferred by the Gambling Commission.
Option two will see the same fees rise by 20%, while option three – the one the government said it prefers – entails a 20% annual fee rise plus 10% more that would be ringfenced for tackling the illegal market.
One thing to note is that these percentages are not planned for evenly distribution and the overall increase of annual fees will be based on the type of licence.
Fees will be calculated based on market share and regulatory risk with the exception of three licenses – those for General Betting Limited, External Lottery Manager, and Society Lotteries. They will get a flat percentage increase based on current fee levels.
An increase in the operator application fees and the first annual fees are also touted, depending on each of the aforementioned three options. Fees for personal licenses, variation and change of corporate applications will go up by either 20% or 30%.
The government and the UKGC want the changes written into law by 1 October 2026, with consultations supposedly meant to be running up until 30 March.
The regulator’s budget black hole
Both entities have justified the licence fee reviews with the “budget deficits” that the Gambling Commission has gone through since 2021, when the operating licence fees were last reviewed.
The “erosion” of the UKGC’s financial reserves has been attributed to increased investment in areas like disrupting the illegal market, implementing the 62-point Gambling Act Review White Paper, and the biggest external threat to cash reserves – inflation.
Projected calculations are for the Commission to be close to its minimum reserve of £4m by the end of the 25/26 financial year. With costs expected to maintain an upwards trajectory, the UKGC warned that its reserves will be completely exhausted during FY26/27 if the fee uplift later in October is not implemented.
Taking a more general look at the UK market, operators are already facing increased fees with the remote gaming duty hike from 21% to 40% coming in this April, while the general betting duty will be moved up to 25% from April 2027.
Similarly, these tax raises were implemented to cover a black hole in finances – this being the UK’s public finances, however, and not those of the Gambling Commission.
Consequences are already being seen across the market, with operators with a retail offer like evoke considering strategic options to de-scale their businesses, such as the closure of high-street betting shops.