The UK government has confirmed a 25% increase in Gambling Commission licence fees, providing the regulator with greater long-term funding as it continues implementing reforms outlined in the 2023 Gambling White Paper.
Published by the Department for Culture, Media and Sport (DCMS), the government’s response to its funding consultation concludes a review that ran between January and March 2026. The revised fee structure is intended to strengthen the Commission’s ability to carry out its expanding regulatory responsibilities while providing greater certainty over its future funding.
Subject to secondary legislation, the new fees will take effect on 1 October 2026.
Licence Fee Framework to Change Across the Sector
While the overall increase is set at 25%, the impact will vary depending on licence type and operator size. DCMS confirmed that new fee categories will be introduced for most operating licences, with an operator’s 2025-26 regulatory return determining which category it falls under in the revised structure. The Gambling Commission has said operators will receive further guidance over the coming weeks explaining how the new categories apply to their businesses.
The changes extend beyond standard operating licences. Personal licence fees will rise by a flat 25%, while revised charges will also apply to supplementary licences, licence variations, single-machine permits and changes of corporate control. First annual fees will continue to be charged at 75% of the standard annual rate.
The department also rejected industry requests to phase in the increases, maintaining that licence fees continue to represent only a small proportion of operators’ gross gambling yield (GGY).
The Background Consultation
The final framework differs from the options originally presented during consultation. DCMS considered a 20% increase, a 30% increase and a model combining a 20% rise with an additional ringfenced charge to support action against illegal gambling. Instead, the government opted for a standalone 25% increase without ringfencing any of the additional income.
According to DCMS, the Gambling Commission currently faces an annual funding gap of around £4 million. It will still need to deliver approximately £8 million in efficiency savings over the next five years, even after the revised fees come into force.
Separate funding arrangements will remain in place for enforcement against illegal gambling. Rather than relying on licence fee income, the Commission’s expanded work in that area will continue to be supported through £26 million in Treasury funding over three years.
Not every part of the sector will experience higher costs. Society lottery licence fees will remain frozen to help protect charitable returns, while non-remote general betting limited licence holders will transition to a new fee calculation model based on gross gambling yield rather than days of operation. DCMS estimates that many operators in this category will see either reduced fees or only modest increases.
The revised framework forms part of the wider gambling reform agenda following the 2023 White Paper. Alongside the statutory levy and broader regulatory changes, the updated licence fee structure is intended to ensure the Gambling Commission has the resources needed to oversee an increasingly complex and evolving gambling market.
