UK Confirms 25% Gambling Licence Fee Increase for Licensed Operators

Most gambling operators across Great Britain will pay higher Gambling Commission licence fees from 1 October 2026, after the UK government confirmed a 25% increase designed to help close a growing funding gap at the regulator.

The changes, announced by the Department for Culture, Media and Sport (DCMS), affect the majority of operating licence holders, although some sectors, including society lotteries, will be exempt from the increase.

Gambling Operators Face Higher Regulatory Costs

The revised fees come as licensed gambling businesses continue to absorb a series of regulatory changes, including updated gambling duties and the introduction of the statutory levy for research, prevention and treatment.

According to DCMS, the Gambling Commission is currently operating with an annual budget shortfall of around £4 million. Even with the higher licence fees, the regulator is expected to deliver at least £8 million in additional efficiency savings over the next five years.

The 25% increase applies to most operating licences, as well as personal licences, supplementary licences, licence variations, single machine permits and changes of corporate control. First annual licence fees will continue to be charged at 75% of the standard annual rate.

Despite requests from parts of the industry, DCMS ruled out introducing the increase gradually, arguing that licence fees remain a relatively small proportion of operators’ gross gambling yield (GGY).

The Consultation That Informed the Revised Fee Structure

The final decision follows a government consultation held earlier this year, during which DCMS considered several pricing models, including a 20% increase, a 30% increase and a proposal that would have allocated part of the rise specifically to tackling illegal gambling.

Instead, ministers opted for a single 25% increase without ringfencing any of the additional revenue. The figure sits below the original 30% proposal discussed during the consultation.

Not every licence holder will be affected equally. Operators generating more than £100 million in annual GGY will see licence fees rise from roughly 0.1% to 0.15% of revenue, while businesses earning between £10 million and £100 million in GGY will experience a smaller proportional increase. Meanwhile, more than 1,100 smaller operators with annual GGY below £10 million are expected to pay less overall under the revised fee structure.

Changes are also coming for on-course bookmakers, whose licence fees will move from a system based on operating days to one linked directly to gross gambling yield. DCMS estimates that almost half of operators in this category will pay lower fees, while most of the remainder will see only modest increases.

Society lotteries have been excluded from the fee rise to help protect charitable returns, although external lottery managers will still be subject to the new charges.

The government also confirmed that the licence fee increase will not fund the Gambling Commission’s expanded enforcement against illegal gambling. That work will continue to be supported separately through £26 million in Treasury funding, leaving licensed operators to shoulder higher regulatory costs from October while the regulator strengthens oversight across Britain’s gambling market.