The UK government has confirmed that gambling license fees will increase from October 2026 following the end of a consultation on how the Gambling Commission should be funded in the coming years.
The Department for Culture, Media and Sport (DCMS) published its response to the consultation, which took place between January and March. The outcome sets out a revised fee structure designed to support the Gambling Commission’s regulatory responsibilities, including work related to the reforms outlined in the Gambling Law Review White Paper.
Under the new framework, License fees will increase by 25% across the board. Although this increase applies across all sectors, the exact impact will vary depending on the type of permit held. The government will also introduce new fee categories for most operational permits.
The changes still require secondary legislation before being implemented. If approved, the revised fees will come into effect in the UK on 1 October 2026.
New Fee Structures Deliver Different Results in Different Sectors
The government’s response outlines several key elements of the updated system. Operating permit fees will increase by 25%, while personal permits, additional operating permits, single engine permits, applications to change operating permits, and changes in company control will also see increases of 25%.
One notable exception is community lotteries, whose fees will not change.
The government will also introduce a different method for calculating fees for non-remote general betting limited license holders. Rather than relying on operational days, these licenses will be assessed using a market share approach based on gross gambling proceeds (GGY). This category mainly includes bookmakers on the field.
According to the Gambling Commission, operators should review the detailed annex accompanying the government’s response as fee adjustments vary by license category. The regulator said businesses would receive further guidance in the coming weeks, including information on establishing new categories.
The Commission added that the cost classification will be determined using regulatory return data submitted by operators for the 2025-26 reporting period.
Government Chooses Midpoint Option After Consultation
Before making a decision, DCMS examines several alternatives. Officials are considering a 30% increase, a 20% increase, and a 20% increase combined with a 10% surcharge allocated to work related to illegal gambling and revenue protection.
Ultimately, the department opted for a standalone increase of 25%.
Consultation responses show that gambling operators are broadly opposed to any fee increases. Many companies argue that the industry has endured many cost increases in recent years.
Despite objections, the government concluded that gradual implementation of higher rates was not necessary. Officials acknowledged the financial pressures facing operators but maintained that licensing fees still constitute a relatively small proportion of gross annual gambling proceeds.
The department also rejected suggestions that fee increases should be gradual, arguing that such an approach would complicate the system without providing significant benefits.
Funding of Illegal Gambling Remains a Controversy
The consultation also highlighted differences in views between government and industry regarding funding efforts aimed at combating illegal gambling.
Some operators oppose using increased permit fees to support enforcement activities against unlicensed operators. Instead, they argue that government departments should bear the costs directly.
This problem has become prominent as governments and the gambling industry increasingly focus on the growth of unlicensed gambling activities.
According to figures cited by the Betting and Gaming Council, more than £16 million was wagered on illegal gambling platforms during 2025. Policymakers have expressed concerns about the impact of such activity on consumer protection efforts and tax revenues.
Alongside the tax changes introduced for gambling operators, the government previously announced £26 million in additional funding for the Gambling Commission to strengthen enforcement against illegal gambling.
The authorities have also established a special DCMS Illegal Gambling Task Force led by the Minister for Gambling Baroness Twycross. The taskforce is expected to examine several issues, including payment systems linked to unlicensed operators and the possibility of limiting sponsorship arrangements between unlicensed gambling companies and British sports teams.
Although industry groups generally welcomed tougher action against illegal gambling, consultation responses showed a lack of support for using higher license fees to fund such initiatives.
