UK Plans to Boost Gambling Regulator Fees as Budget Tightens

Summary

The UK government has launched a consultation on raising the fees gambling firms pay to the UK Gambling Commission to address a funding shortfall. The Department for Culture, Media and Sport (DCMS) has set out three options for annual fee rises, all due to start on 1 October 2026: a roughly 30% across-the-board increase; a 20% increase; or a 20% rise plus an additional 10% earmarked to tackle illegal gambling and associated crime.

Changes would not be uniform: most fees would be recalculated based on operators’ market share and regulatory risk, while some licence types (for example General Betting Limited, External Lottery Managers and Society Lotteries) would see straight percentage increases. Application and first-year licence charges (set at 75% of the yearly amount) would rise under all options, and costs related to personal licences and corporate control changes would increase by either 20% or 30% depending on the chosen plan.

Key Points

DCMS consultation proposes three fee-rise options to shore up the UK Gambling Commission’s funding from 1 October 2026.
Options: ~30% across the board; 20% across the board; or 20% plus an extra 10% targeted at illegal gambling enforcement.
Most fees would be recalculated using operators’ market share and regulatory risk; some licence types would get straight percentage bumps.
Application and first-year fees (75% of annual charge) and costs for personal licences/corporate control changes would also increase.
The UK Gambling Commission has drawn on reserves (over GBP 3m last year and planning another GBP 5m in 2025–26) and warns it could run out of funds without increases; projected shortfall could exceed GBP 9m per year by 2030.
The proposed hikes come as remote gaming duty is set to almost double in April and general betting duty increases in 2027 — adding financial pressure on operators.
DCMS also proposes giving the UK Gambling Commission more flexibility to set fees in future, removing the need for ministerial sign-off similar to Ofcom or the Financial Conduct Authority.
The consultation is open until the end of March, allowing industry stakeholders to respond on both the scale of increases and the proposed funding framework changes.

Why should I read this?

Short version: if you run, work with, or invest in UK gambling businesses, this will hit your costs — and it’s landing the same year tax bills rise. Read the detail because the way fees are reworked (market-share and risk-based) could change who pays more — not just a flat hike.

Context and relevance

This story matters because it signals a shift in how gambling regulation is funded in the UK. The regulator’s dwindling reserves, growing enforcement workload and the wider Gambling Act review mean fees are likely to become a steadier income stream. For operators, the timing is critical: fee rises running alongside big tax increases will squeeze margins and may affect pricing, market consolidation or compliance strategies. For policymakers and consumer groups, the consultation offers a chance to influence whether extra income is ring-fenced for tackling illegal gambling or used for broader regulatory work.