The UK government has confirmed a new Gambling Commission fee structure that will introduce a headline 25% increase from 1 October 2026, following a consultation in which most industry respondents opposed any rise.
The final approach differs from all three options originally presented for consultation. Those proposals considered a 30% headline increase, a 20% rise, or a 20% increase accompanied by an additional 10% ringfenced for work involving illegal gambling markets and revenue protection.
None will proceed in its original form. Instead, the government will implement a 25% headline increase through secondary legislation, with different treatment for society lotteries and general betting limited operating licences.
The consultation ran from 27 January to 30 March and attracted 47 responses, primarily from licensed gambling operators, suppliers and industry representatives. Almost all operator respondents rejected the three proposed options and favoured keeping fees at their existing levels.
Government Chooses 25% Increase After Industry Opposition
Support for the original proposals was limited. Only two respondents backed the 30% option, while none supported the proposal combining a 20% increase with an additional 10% ringfenced element. Four of the 47 respondents supported the straightforward 20% increase.
Industry respondents raised concerns about the cumulative financial pressure on gambling businesses. They pointed to recent changes in gambling duty rates and the introduction of the statutory levy, while some questioned whether the proposed fee increases accurately reflected the cost of regulation.
Despite those objections, the government concluded that an increase is required to support the Gambling Commission’s work. It said keeping fees unchanged, or implementing a 20% headline increase, would require the regulator to make significant cuts and reduce activity in areas regarded as important.
The Commission is currently operating with annual budget deficits of approximately £4 million. Even after the 25% headline increase takes effect, it will need to find at least £8 million in additional efficiency savings over the next five years.
Funding for tackling illegal gambling will be handled separately rather than through a ringfenced portion of licence fee increases. HM Treasury has confirmed £26 million in additional funding over three years for this work.
The regulator plans to use that funding to expand its activities aimed at disrupting unlicensed gambling and automate parts of its operations where appropriate.
Society Lotteries and Bookmakers Receive Different Treatment
The 25% headline figure will not apply uniformly across every operating licence category.
Society lottery licence fees will remain frozen. Feedback from the sector warned that higher regulatory costs could reduce the amount of money available for good causes.
External lottery managers will not receive the same exemption. Their fees will be subject to a 25% increase because they typically operate as commercial entities.
The government will also change how fees are calculated for general betting limited operating licences, which cover on-course bookmakers. The existing system links fees to the number of days a bookmaker operates. From October, charges will instead be determined according to gross gambling yield.
The change followed feedback from on-course bookmakers and further engagement with the sector. Respondents had argued that calculating fees according to operating days created additional pressure in a market where racecourse attendance and operator numbers had declined.
Under the revised structure, 44% of operators within this licence category are expected to receive a fee reduction.
Another 53% will see their annual fee rise by £22, from £230 to £252.
The broader fee changes will also affect other regulatory charges. Personal licence fees, supplementary operating licences and single machine permits will increase by 25%. The same percentage increase will apply to applications involving variations to operating licences and changes of corporate control.
First annual fees will continue to be charged at 75% of the applicable annual fee.
Fee Changes Will Take Effect Without Phased Introduction
Some consultation respondents asked the government to introduce higher fees gradually because gambling businesses were already facing other cost increases.
The government rejected a phased approach. It concluded that delaying full implementation would add complexity, increase the Commission’s deficits and limit regulatory activity in strategic areas.
Under the revised structure, the largest operators and groups with annual gross gambling yield above £100 million are expected to see licence fees increase from approximately 0.1% of GGY to around 0.15%.
For operators generating between £10 million and £100 million in annual GGY, the proportion is expected to rise from approximately 0.18% to 0.22%.
More than 1,100 smaller operators generating less than £10 million in annual GGY are expected to receive a reduction in the cash amount they pay.
Consultation respondents also called for further efficiency savings at the Gambling Commission, and the government agreed that additional savings are necessary. However, it rejected suggestions that improved industry compliance should lead to a broad reduction in compliance activity.
During 2025/26, around a quarter of assessments covering crime prevention and consumer protection requirements either identified significant failings or resulted in operators being placed into special measures.
The government will now use secondary legislation to put the revised fees into effect. The new structure will apply from 1 October 2026, bringing the first broad changes to Gambling Commission fee levels since the previous adjustments took effect in 2021.
Source:
Government response to the proposals for changes to Gambling Commission fees from 1 October 2026, gov.uk, 30 June 2026
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