UK weighing gambling licence fee hikes by as much as 30%
Summary
Britain’s Department for Culture, Media and Sport (DCMS) is consulting on proposals to raise annual licence fees paid to the UK Gambling Commission (UKGC) by up to 30% from 1 October 2026. The consultation sets out three options: a 30% flat increase (favoured by the Commission), a 20% rise that would force major cutbacks, and a 20% rise plus an extra 10% ring-fenced specifically to tackle illegal gambling (the government’s preferred approach). The UKGC warns its financial reserves will be exhausted in 2026/27 without additional funding.
The regulator used £3.1m of reserves in 2024/25 and forecasts a further £5m drawdown in 2025/26 against annual income of £27.9m. Without a fee uplift it forecasts a £7m deficit in 2027/28, widening to £9.5m by 2030/31. A 30% uplift would raise about £8.7m a year, allowing the UKGC to maintain existing enforcement, data and stakeholder programmes. A 20% increase would generate roughly £3.1m less and require savings of about £15.8m over six years, including around a 10% staff reduction and a substantial scaling-back of proactive work against unlicensed operators.
The government’s favoured option would deliver a 30% headline rise but ring-fence about £2.6m a year for illegal-market enforcement; even so the Commission would need to divert £1.4–£1.5m annually from other activities and make efficiency savings. These proposals come as operators already face higher tax burdens — remote gaming duty rising to 40% from April 2026 and a new 25% general betting duty for remote gambling from April 2027 — which industry groups warn could push players towards unlicensed sites. Research suggests illegal online gambling is approaching 10% of the UK market. The government also pledged an extra £26m over three years to help combat illegal gambling and proposes removing the requirement for DCMS secondary legislation to enact fee changes, letting the Commission consult and implement directly.
Key Points
- DCMS consultation outlines three fee options: 30% (UKGC preferred), 20%, or 20% plus 10% ring-fenced for illegal-market enforcement (government preferred).
- Proposed fee changes would take effect from 1 October 2026 following consultation (consultation runs until 29 March 2026).
- UKGC forecasts reserves exhausted in 2026/27 without an uplift; a 30% rise would raise ~£8.7m per year.
- A 20% increase would yield ~£3.1m less and require major savings including around 10% staff cuts and reduced proactive enforcement.
- The government’s option rings ~£2.6m for illegal-market work but still requires diverting £1.4–£1.5m from other programmes.
- Operators already face higher taxes (remote gaming duty to 40% from Apr 2026; new 25% general betting duty from Apr 2027), raising concerns of migration to unlicensed sites.
- Proposal to remove DCMS secondary-legislation step, allowing the Gambling Commission to consult and implement fee changes directly.
Why should I read this?
Short and simple: if you run, advise or invest in UK gambling businesses this could hit your costs, headcount and how enforcement works. We read the consultation so you don’t have to — here’s what actually changes and why it matters.
Context and relevance
The proposals reflect rising enforcement costs, implementation of Gambling Act reforms and inflation. They reshape how regulation is funded and prioritised, with direct implications for operator margins, compliance workloads and the size of the illegal market. This is important for operators, compliance teams, investors and advisers tracking sector stability and regulatory risk.
Author style
Punchy: high-impact policy news for the gambling sector. If the numbers affect you, read the consultation; if not, file this as ‘watch closely’.