The UK government has confirmed that most Gambling Commission licence fees will increase by 25% from 1 October 2026 following a public consultation earlier this year. The revised package replaces three options originally proposed by the Department for Culture, Media and Sport (DCMS), introducing a single headline increase alongside targeted exemptions and changes to selected licence categories.
DCMS conducted the consultation between 27 January and 30 March 2026, receiving 47 responses, mainly from gambling operators, suppliers and industry representatives. While most respondents opposed any increase, the department concluded that higher fees were necessary to maintain the Gambling Commission’s regulatory work and address future funding requirements.
Revised Fee Structure Replaces Earlier Proposals
The consultation originally presented three alternatives: a 30% increase, a 20% increase, or a 20% increase combined with an additional 10% charge dedicated to tackling the illegal gambling market.
Following industry feedback, the government rejected all three proposals. Instead, it approved a 25% increase covering operating licence fees, application fees, first annual fees, personal licences, supplementary licences, variations and corporate control applications. First annual fees will continue to be charged at 75% of the full annual fee.
Society lotteries have been excluded from the increase, with both licence and ancillary licence fees remaining unchanged to help preserve funding for charitable causes.
The government also confirmed changes for general betting (limited) operating licences held by on-course bookmakers. Instead of calculating fees according to the number of operating days, charges will now be based on gross gambling yield (GGY). DCMS estimates that 44% of operators in this category will pay lower fees, while another 53% will see only a modest increase of around £22.
Funding Pressures Remain Despite Increase
Many consultation responses highlighted the cumulative financial impact of recent gambling duty changes and the introduction of the statutory levy. Respondents also questioned proposals to fund illegal gambling enforcement through higher licence fees.
The government decided against ringfencing any portion of the new fees for illegal market activity. Instead, the Gambling Commission will continue implementing its enforcement strategy using a separate £26 million funding package provided by HM Treasury over three years.
According to DCMS, the regulator currently faces an annual budget shortfall of about £4 million. Even after the fee increase takes effect, the Commission will still need to deliver at least £8 million in efficiency savings during the next five years.
The department added that licence fees continue to operate on a cost-recovery basis and remain a relatively small proportion of operators’ gross gambling yield. For businesses generating more than £100 million in annual GGY, fees are expected to rise from roughly 0.1% to around 0.15% of GGY.
Changes Take Effect in October
DCMS acknowledged concerns about the wider cost environment but rejected suggestions to phase in the increases over several years, arguing that doing so would delay funding needed for regulatory activity while increasing financial pressure on the Commission.
The revised fee structure will be introduced through secondary legislation and is scheduled to come into force on 1 October 2026.
Source:
“Government response to the proposals for changes to Gambling Commission fees from 1 October 2026”, gov.uk, Jun 30, 2026
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