UK government proposes higher gambling fees to address budget pressures

• The UK government plans to increase Gambling Commission fees charged to operators to address rising regulatory costs.
• Three consultation options propose fee increases of 20% to 30% starting 1 October 2026, with one option including extra funding for illegal gambling enforcement.
• The Gambling Commission projects reserve exhaustion in 2026-27 without adjustments, facing a £7 million deficit in 2027-28 and £9.5 million by 2030-31.

The UK government is preparing to raise fees charged by the Gambling Commission to licensed operators, responding to budget pressures facing the regulatory body as it implements expanded responsibilities under the gambling white paper reforms.

The proposed fee increases would affect all licensed gambling operators in Great Britain, including online and land-based betting companies, casinos, gaming machine operators, and lottery providers.

Consultation options

The Department for Culture, Media and Sport (DCMS) has outlined three fee adjustment options, all involving annual charge increases starting 1 October 2026.

The first proposal suggests approximately 30% increases across the board (Gambling Commission preferred), whilst a second option recommends 20% rises. A third alternative combines a 20% increase with an additional 10% specifically directed toward combating illegal gambling and related crimes (government preferred).

Whilst headline figures suggest universal increases, actual adjustments would vary by licence type. Most fees would be calculated using operators’ market share and regulatory risk profiles. Licences for General Betting Limited, External Lottery Managers, and Society Lotteries would receive straightforward percentage increases.

Application fees and first-year licences set at 75% of annual amounts would rise proportionally. Costs for personal licences and corporate control changes would likely increase by either 20% or 30%, depending on the final option selected.

Commission budget pressures

The Gambling Commission has depleted reserves over recent years as operational demands have intensified. Enhanced enforcement spending, implementation of gambling white paper reforms, active lawsuits, and improved data capabilities have exhausted savings.

The regulator drew £3.1 million from reserves in 2024-25 and plans to draw another £5 million in 2025-26, bringing savings near the £4 million minimum safe level. Without fee increases, reserves exhaust in 2026-27, with deficits of £7 million in 2027-28 rising to £9.5 million by 2030-31.

The regulator currently operates on an approximately £28 million annual budget (excluding National Lottery) funded entirely through licence fees and annual regulatory fees based on operator gambling yield, rather than general taxation.

Costs have increased significantly as the Commission has strengthened its regulatory approach to protect consumers and ensure gambling is fair and safe. Fee adjustments will ensure it can continue to meet statutory obligations effectively.

Industry concerns

Gambling industry representatives have expressed concerns about fee increases coinciding with other cost pressures. The Betting and Gaming Council (BGC), representing major gambling operators, acknowledged Commission funding needs whilst urging restraint.

Operators are already facing significant cost pressures from compliance requirements, taxation, and broader economic challenges; further fee increases must be proportionate and justified by clear regulatory benefits.

Smaller operators and trade associations have raised stronger objections, arguing fee increases disproportionately affect businesses with limited resources. Some industry figures suggest excessively high regulatory fees could drive smaller operators from the market or encourage unlicensed operation.

Tax increases compound pressure

The proposed fee increases arrive alongside substantial tax rises announced in the Autumn Budget. Remote gaming duty will nearly double from April 2026, increasing from 21% to 40%. General betting duty increases are scheduled for 2027.

The statutory levy on gambling operators launched in April 2025, requiring all licensed operators to contribute between 0.1% and 1.1% of Gross Gaming Yield toward research, prevention and treatment of gambling harm.

The levy raised approximately £120 million in its first year, separate from operational Commission funding. Online operators face the highest levy rate at 1.1% of GGY, with casinos and bookmakers paying 0.5% and bingo operators contributing 0.2%.

Regulatory expansion context

Fee increase proposals arrive as the UK government develops white paper reforms to gambling legislation. The reforms, published in 2023, introduced numerous regulatory enhancements including affordability checks, stake limits, and advertising restrictions.

Implementation has expanded the Commission’s workload, requiring additional resources for guidance development, compliance monitoring, and enforcement activities.

The Commission has increased technology investments to monitor online gambling and detect regulatory breaches. Recent years have seen the Commission impose record financial penalties on operators for compliance failures. These sanctions, however, flow to the National Strategy to Reduce Gambling Harms rather than Commission operational funding.

The remote gambling sector generated over £6 billion in gross gambling yield during 2023-24.

Fee structure and future framework

The Commission employs a tiered fee structure where operators pay annual fees based on previous year gambling yield (currently 0.21% of GGY, proposed up to 0.28%). Larger operators with higher revenues pay substantially more than smaller businesses. The proposed increases would maintain this proportional structure whilst raising overall fee levels.

DCMS has indicated plans to reform how regulatory fees are determined. Instead of requiring ministerial approval for every change, the government proposes granting the Commission greater autonomy to adjust charges, similar to powers held by Ofcom and the Financial Conduct Authority.

Consultation timeline

The consultation launched on 27 January 2026 and runs until 29 March 2026, inviting responses from licensed operators and stakeholders. DCMS will review feedback to determine final fee levels and implementation. Fee adjustments require DCMS approval. If approved, new fees take effect from 1 October 2026, with advance notice to operators.