UK government consults on increases to Gambling Commission fees

The United Kingdom government has launched a public consultation regarding proposed increases to the fees charged by the Gambling Commission, the country’s principal gambling regulator. The Department for Culture, Media and Sport (DCMS) is evaluating three potential models to raise fees, all of which would be implemented from October 1, 2026.

The consultation comes amid growing scrutiny of the Commission’s finances and regulatory responsibilities. According to documents released by the DCMS, the proposed fee adjustments are intended to address budget deficits, sustain regulatory operations and support the ongoing enforcement of gambling laws, particularly in combatting illegal gambling activity.

Consultation process and brief document removal

The DCMS published four consultation documents outlining the proposed fee structures on the UK government’s official website. Interestingly, these documents were temporarily removed earlier on January 27, 2026, with a note indicating that the information had been published in error. The documents were later reposted, although it remains unclear whether any changes were made or if the timing of the initial release was simply premature.

The consultation period will remain open until March 30, 2026, allowing stakeholders, including gambling operators, industry representatives and the public, to provide feedback on the proposed fee changes.

Three proposed models for fee increases

The consultation outlines three distinct models for raising annual licence fees for gambling operators. Each option reflects a different approach to addressing the Commission’s budgetary challenges:

• Option 1: A 30 per cent increase in annual licence fees.
• Option 2: A 20 per cent increase in annual licence fees.
• Option 3: A 20 per cent increase combined with an additional 10 per cent specifically earmarked for tackling illegal gambling activity.

The documents clarify that these increases would not be applied uniformly across all licence types. Adjustments would depend on factors such as licence category, market share and the assessed regulatory risk associated with each operator. Licences for General Betting Limited, External Lottery Manager and Society Lotteries would be subject to a flat percentage increase.

Application fees for new operators, as well as first-year annual fees—calculated at 75 per cent of the standard annual fee—would also rise under any of the proposed models. Personal licence holders and corporate applicants could see increases ranging from 20 to 30 per cent, depending on the option implemented.

Financial pressures on the Gambling Commission

The consultation documents emphasize that since the last review of licence fees in 2021, the Gambling Commission has expanded its investment in several key areas. These include disrupting illegal gambling operations, implementing reforms outlined in the Gambling Act Review White Paper and enhancing data collection and analytical capabilities. These additional obligations have contributed to consecutive annual budget deficits, depleting the Commission’s financial reserves.

In the 2024–2025 financial year, the Commission reportedly used £3.1 million of its reserves, with an expected drawdown of a further £5 million in 2025–2026. This expenditure is projected to reduce the Commission’s reserves to near its minimum level of £4 million. The documents warn that without a fee increase in October 2026, the Commission could exhaust its reserves entirely during the 2026–2027 financial year. The consultation states, “Without a fee uplift in October 2026, the Commission’s reserves are expected to be completely exhausted during the 2026 to 2027 financial year. The Commission plans to absorb some future inflationary pressures, but without an uplift it forecasts a deficit of £7 million in 2027 to 2028, rising to £9.5 million in 2030 to 2031.”

Context of wider tax increases

The timing of the proposed fee hikes coincides with broader regulatory and fiscal changes affecting the UK gambling industry. The government announced in its Autumn Budget of 2025 that remote gaming duty will rise from 21 to 40 per cent from April 2026. General betting duty is set to increase to 25 per cent from April 2027.

These changes have already prompted responses from operators. Some larger companies have indicated that they intend to absorb the higher costs, while others are considering cost reductions. For example, in December 2025, Evoke, which owns the William Hill brand in Europe, announced plans for a comprehensive strategic review. The review could lead to the sale of specific business units or the entire company, reflecting the financial pressures created by taxation and regulatory fee increases.

Proposed updates to the funding framework

The consultation also addresses structural considerations regarding the Gambling Commission’s fee-setting framework. Since 2017, most licence fees have been based on gross gambling yield (GGY). In 2021, remote gambling fees were increased by 55 per cent and non-remote fees by 15 per cent to reflect the higher regulatory burden associated with online gambling.

Despite these adjustments, the Gambling Commission notes that remote gambling revenues continue to outpace those of retail operations. In some cases, income from certain licence types has diverged from the actual cost of regulating those activities. The proposed changes aim to realign licence fees with the actual cost of regulatory oversight, ensuring that funding more accurately reflects operational demands.

Future fee-setting powers

A notable aspect of the consultation is the proposed change to the statutory process for updating licence fees. Currently, any adjustment requires a statutory instrument enacted by the Secretary of State for Culture, Media and Sport. Under the proposed framework, the Gambling Commission would gain the authority to consult on fee adjustments and implement them independently.

The DCMS notes that this approach would align the Gambling Commission with other UK regulators, including Ofcom and the Financial Conduct Authority, both of which have discretion to set fees without requiring direct ministerial approval. This change aims to enhance operational flexibility and allow the Commission to respond more quickly to evolving regulatory needs.

Implications for operators and the market

Industry analysts suggest that the combination of fee increases and tax changes could have significant implications for the UK gambling market. Smaller operators and start-ups may be disproportionately affected, as higher entry costs and operational fees could challenge profitability. Larger operators, while potentially better positioned to absorb costs, may also seek to review business strategies, including asset sales or operational restructuring.

“The proposed increases are critical to maintaining the integrity and effectiveness of regulation across all sectors of the UK gambling market,” said a spokesperson for the DCMS. “The consultation allows stakeholders to provide detailed input, ensuring that any fee adjustments are proportionate, fair and aligned with the costs of regulatory oversight.”

Next steps and consultation timeline

The consultation period will remain open until March 30, 2026. Following the close of the consultation, the DCMS and the Gambling Commission will review feedback from operators, trade associations and the public. Any final decision on fee structures is expected to be published later in 2026, with implementation scheduled for October 1 of that year.

Stakeholders are encouraged to engage with the consultation process to ensure that the perspectives of the gambling industry and the broader public are considered. The DCMS emphasizes that the consultation is an opportunity to balance financial sustainability with effective regulation, public safety and responsible gambling objectives.

Conclusion

The proposed increases to Gambling Commission fees represent more than a simple financial adjustment—they reflect the UK government’s broader commitment to ensuring a robust, transparent and well-regulated gambling sector. By addressing the Commission’s budgetary shortfalls, these changes are designed to secure the long-term sustainability of regulatory oversight, enabling authorities to effectively monitor operators, enforce compliance and disrupt illegal gambling activity that undermines both public trust and market integrity.

Beyond the immediate financial implications for operators, the consultation signals a shift toward a more strategic, risk-based regulatory framework. By aligning licence fees with the actual cost of oversight and granting the Gambling Commission greater autonomy in fee setting, the government is fostering a system that is adaptable to emerging trends in online and retail gambling, technological innovation and evolving consumer behaviors.

The consultation also underscores the delicate balance between fiscal responsibility and market stability. Operators will be challenged to adjust to increased costs amid rising taxes, yet the reforms aim to protect the sector from unchecked risks, enhance consumer protection and maintain confidence in the UK as a regulated gambling hub. In this context, the outcome of the consultation will shape not only the financial landscape of the industry but also the operational and strategic choices of operators for years to come.

Ultimately, the proposed fee adjustments illustrate a forward-looking regulatory approach that prioritizes accountability, sustainability and market integrity. By securing the necessary resources for the Gambling Commission, the UK government aims to ensure that regulatory oversight remains effective, equitable and capable of safeguarding both consumers and legitimate operators in a dynamic and evolving industry.

FAQs

What is the purpose of the UK government consultation on Gambling Commission fees?
The consultation seeks feedback on proposed fee increases to address the Gambling Commission’s budget deficit and fund regulatory operations.

When will the proposed fee changes take effect?
The fee changes are scheduled for implementation on October 1, 2026.

How many fee increase options are proposed?
Three models have been proposed, including 20 per cent and 30 per cent increases, with one option earmarked for illegal gambling enforcement.

Will the fees apply uniformly across all operators?
No, adjustments will depend on licence type, market share and regulatory risk.

Why are fee increases being considered now?
The Commission has experienced budget deficits and depleted reserves due to increased regulatory investment and inflationary pressures.

How do these changes relate to recent gambling tax increases?
The fee increases coincide with rises in remote gaming duty and general betting duty announced in the Autumn Budget of 2025.

What changes are proposed for the fee-setting process?
The Gambling Commission would gain authority to set fees independently, without requiring a statutory instrument by the Secretary of State.

Which operators may be most affected by the fee hikes?
Smaller operators and new entrants may face greater financial pressure, while larger operators may absorb some costs or adjust business strategies.

How long will the consultation run?
The consultation is open until March 30, 2026.

Why is the focus on funding enforcement against illegal gambling?
Illegal gambling undermines market integrity and consumer protection, requiring dedicated resources to monitor and disrupt such activities.