DCMS confirms 25% licence fee rise for October

• DCMS confirmed a 25% increase to Gambling Commission operating licence fees from 1 October 2026, opting for a standalone figure not among the three options put to formal consultation.
• The January–March consultation drew 47 responses, most from licensed operators and trade bodies, the majority of whom opposed any increase at all.
• Society lotteries are exempt, with fees frozen; non-remote general betting (limited) licences move from a days-of-operation model to a gross gambling yield-based structure.

The Department for Culture, Media and Sport (DCMS) has confirmed a 25% increase to Gambling Commission operating licence fees, taking effect on 1 October 2026, subject to secondary legislation.

The decision comes after a formal consultation that attracted near-unanimous opposition from licensed operators, and adds to a sequence of material cost changes for the regulated sector in Great Britain.

Industry rejects any rise

The consultation ran from 27 January to 30 March 2026 and received 47 responses, the majority from licensed operators and industry trade bodies. Most opposed any fee increase at all, citing recent duty rate changes and the statutory levy as already intensifying cost pressures.

DCMS had consulted on three options: a 30% flat increase, a 20% increase, or a 20% rise with an additional 10% ringfenced for enforcement against unlicensed operators.

The Gambling Commission favoured the 30% option, which would have generated approximately £8.7 million in additional annual income and allowed the regulator to maintain its current programme of work at steady state. The government concluded that none of the three options was appropriate and instead confirmed a 25% headline increase, a figure not put to consultation.

DCMS stated that an increase was necessary for the Commission to continue addressing the challenges of regulating the market, and that without one the regulator would need to make significant cutbacks and deprioritise work the government considers important.

A phased introduction was rejected on the basis that fees represent a small proportion of annual gross gambling yield and that phasing would add unnecessary complexity.

How fees break down

Most licence categories will see the full 25% increase applied. Personal licences, supplementary operating licences, licence variations and single-machine permits all rise by the same proportion, extending the cost beyond corporate entities to key personnel.

Non-remote general betting (limited) operating licences, which cover on-course bookmakers, are treated differently. Fees move from a days-of-operation model to one based on gross gambling yield.

Under the revised structure, 44% of operators in this category see a fee reduction and 53% face a minimal increase of £22, from £230 to £252. The approach follows the Treasury’s decision to exclude horse racing-oriented operators from duty changes that came into force in April 2026.

Remote operating licence fees rise by 25%. Society lottery fees are frozen entirely.

The Gambling Commission is currently running annual budget deficits of approximately £4 million. Even after the increase, the regulator must still identify at least £8 million in further efficiency savings over the next five years.

Costs compound for operators

The October increase lands as licensed operators absorb a series of significant cost changes. Remote Gaming Duty rose from 21% to 40% on 1 April 2026. General Betting Duty for remote bets is set to rise to 25% from April 2027. The statutory levy took effect in April 2025.

Operators challenged the principle of the licensed sector funding enforcement against the black market, arguing that responsibility should rest with central government. DCMS rejected that position, concluding that reducing Commission activity would expose consumers to greater risk and weaken oversight of the regulated market.

The government separately confirmed that the Gambling Commission has secured £26 million in additional HM Treasury funding over three years, to be deployed specifically against illegal gambling.

A DCMS Illegal Gambling Taskforce, chaired by Gambling Minister Baroness Twycross, is running in parallel. Consultations on payment disruption and a potential ban on unlicensed companies sponsoring English sports teams are planned.

DCMS also intends to remove the requirement for the Secretary of State to implement future fee changes by statutory instrument, giving the Commission direct authority to consult on and set its own fees, in line with the model used by Ofcom and the Financial Conduct Authority.