The UK government is to press ahead with a 25% increase in Gambling Commission licence fees, arguing the uplift is necessary to ensure the regulator can meet the demands of implementing Britain’s gambling reforms.
The decision headlines the government’s response to its consultation on Gambling Commission operating licence fees, which ran from 27 January to 30 March and received 47 submissions, predominantly from gambling operators and industry stakeholders.
DCMS had consulted on three options: a 30% headline increase, a 20% increase, or a 20% increase combined with a further 10% ringfenced specifically for tackling illegal gambling and revenue protection.
However, the department rejected all three proposals, stating: “In light of the responses received, we do not intend to proceed with any of the above options.”
Instead, the government confirmed that secondary legislation will introduce “a headline 25% increase to licence fees”, alongside targeted exemptions for society lotteries and changes to the charging structure for on-course bookmakers.
The revised framework means society lottery licence fees will remain frozen, while General Betting (Limited) licences will move from a charging model based on operating days to one based on Gross Gambling Yield (GGY), aligning them with other Gambling Commission licence categories. Personal licences, supplementary licences, single machine permits, licence variations and changes of corporate control will all increase by 25%.
The consultation revealed widespread opposition from operators, with the majority arguing that licence fees should not increase given the mounting financial burden already facing the sector.
Respondents cited the cumulative impact of recent gambling duty changes, the statutory gambling levy and rising regulatory compliance costs. Several also argued that enforcement against illegal gambling should be funded by the government, rather than through higher licence fees imposed on compliant businesses.
Despite these objections, DCMS concluded that additional funding is unavoidable.
The department stated: “The government believes that an increase is necessary for the Gambling Commission to continue addressing the challenges of regulating the gambling market.” It warned that “if no increases were to be implemented, or even under a 20% headline increase, the Commission would have to make significant cutbacks and deprioritise or stop work in areas that the Commission and government deems important.”
The response also highlights the Commission’s financial position, noting that it is “currently operating with annual budget deficits of approximately £4 million”. Even with the higher fees, the regulator “will need to identify further efficiency savings of at least £8 million over the next five years” while prioritising delivery of its 2026/27 business plan.
Separately, DCMS confirmed that the Gambling Commission has secured £26m in additional funding over three years from HM Treasury to strengthen action against illegal gambling. According to the response, the Commission will use the funding “to scale up, and automate where appropriate, its existing operational activities to disrupt and deter those who try to operate without a licence.”
The government also rejected suggestions that the regulator could reduce compliance activity to offset rising costs. It noted that during 2025/26 around a quarter of compliance assessments relating to crime prevention and consumer protection identified significant failings or resulted in operators entering special measures, concluding that reducing oversight would risk allowing further regulatory failings to go undetected.
Attention now turns to the Commission’s leadership transition at a pivotal stage in the implementation of the Gambling Act Review.
Over the past eight months, the regulator has seen the departure of Chairman Marcus Boyle and Chief Executive Andrew Rhodes, while this week, Policy Director Tim Miller confirmed he will also leave the Commission after a decade overseeing regulatory policy.
As it stands, UK gambling enters its next phase of reforms without three principal architects of the White Paper policy. including financial vulnerability and affordability checks, which have been postponed following pilot testing concerns since August 2025.
