The UK government has confirmed that most gambling operators will pay higher licence fees from 1 October 2026, after deciding on a 25 per cent increase across the majority of Gambling Commission licences.
The decision follows a consultation launched earlier this year by the Department for Culture, Media and Sport (DCMS), which reviewed whether the Gambling Commission’s fee structure still reflected the cost of regulating Britain’s gambling industry.
During the consultation, the government considered several options, including licence fee increases of 20 per cent, 30 per cent, and a 20 per cent rise with an additional 10 per cent to help fund efforts against illegal gambling. It eventually settled on a 25 per cent increase, saying the move would provide the Gambling Commission with sufficient funding while avoiding a larger financial burden on operators.
The revised fees will apply not only to annual operating licences but also to personal licences, supplementary operating licences, single-machine permits, applications to vary existing operating licences, and changes in corporate control.
New charges to fund UKGC
The new charges will continue to fund the work of the UK Gambling Commission (UKGC), with operators, new licence applicants and gambling technology suppliers all required to pay the updated fees.
The consultation revealed that the industry had little enthusiasm for paying more. According to the DCMS, almost all gambling operators that responded opposed any increase at all.
Many argued the sector has already absorbed a series of additional costs over the past year, pointing to higher gambling duties introduced earlier in 2026 and the rollout of the statutory gambling levy. Some also questioned whether the proposed increases accurately reflected the Gambling Commission’s actual regulatory costs.
Despite acknowledging those concerns, the government said licence fees are still a relatively small proportion of an operator’s annual gross gambling yield (GGY). It also rejected suggestions that any increase should be introduced gradually, arguing that a phased approach would create unnecessary complexity.
Not every licence category will be affected in the same way. Society lottery licence fees will remain frozen, while general betting operating licences will transition to a new market-share-based model that uses gross gambling yield rather than days of operation.
The change mainly affects on-course bookmakers and reflects the government’s broader approach of offering some relief to horse racing-focused businesses.
For larger operators, annual fees will increase substantially under the revised structure. Companies generating higher levels of GGY will pay progressively larger licence fees, with operators earning more than £1.6 billion ($2.18 billion) annually facing the highest charges, alongside additional payments as revenue grows.
Talks ongoing since February 2026
The consultations have been ongoing since February 2026, with differing views over how efforts to combat illegal gambling should be funded. While some operators supported stronger action against unlicenced operators, many argued that these activities should be financed directly by government departments rather than through higher licence fees.
The government’s focus on the illegal market has continued to grow in recent months. Alongside the licence fee changes, it has already committed an additional £26 million ($35.4 million) to strengthen enforcement against illegal gambling.
A dedicated DCMS Illegal Gambling Taskforce, led by Gambling Minister Baroness Twycross, is also examining further measures, including payment restrictions and potential limits on sponsorships involving unlicenced gambling operators. With the new fee structure now confirmed, licenced operators across Britain will begin paying the revised charges when the changes come into force this October.
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