UKGC to raise licence fees 25% from Oct. 1, 2026

The Department for Culture, Media and Sport confirmed on June 30 that most UK Gambling Commission operating licence fees, application fees, personal licence supplementary fees and single‑machine permits will increase by 25% from Oct. 1, 2026. The change is intended to fund the regulator’s expanding responsibilities and close a structural funding shortfall.

DCMS figures show the UKGC recorded licence fee income of £27.4 million in 2024-25. A 25% uplift would increase that total to about £34.3 million, though the final amount will depend on how many operators remain on the new bands. Officials have identified an annual budget deficit of roughly £4 million and said a further £8 million in savings is required over the next five years.

Licence fees are calculated using gross gambling yield (GGY) bands, so larger remote operators will face the largest percentage increases. The department’s data indicates the fee rate for operators with annual GGY above £100 million will rise from about 0.1% to 0.15%. For an operator generating £100 million in annual GGY, that would increase licence costs from roughly £100,000 to £150,000. More than 1,100 smaller operators with annual GGY below £10 million are expected to pay less in cash terms under the new bands.

The department published a formal response after a public consultation held from January to March that drew 47 responses, primarily from licensed operators, suppliers and trade bodies. Consultation options had included a 20% rise, a 30% rise, or a hybrid model combining a 20% rise with an extra 10% ring‑fenced for gambling harm work. Few respondents supported the higher options and none backed ring‑fencing; officials concluded a 25% increase was necessary to avoid deeper cuts to the regulator’s work.

DCMS built in several structural changes. Fees for society lotteries will be frozen to protect funds for good causes. General betting (limited) licences, covering non‑course bookmakers, will move from a days‑worked fee model to one based on GGY; the department estimates 44% of operators in that category will see fees fall while 53% will face a rise of about £22.

Industry groups criticised the increase as an additional cost for licensed operators. The Betting and Gaming Council warned higher taxes and regulatory charges risk pushing customers to offshore and illegal sites and argued that rising costs force venue closures, cost jobs and weaken high streets. Operators have already faced a statutory levy introduced in September 2025, a remote gaming duty rise to 40% in April 2026, and a planned 25% Remote Betting Duty from April 2027.

DCMS rejected calls to fund illegal market monitoring from general taxation and declined requests to phase in the fee increase, citing the additional administrative complexity a phased approach would create. On the same day the department published its response, a policy think tank proposed doubling Machine Games Duty on Category B slot machines from 20% to 40%, estimating about £450 million in extra annual revenue. The Betting and Gaming Council criticised that proposal, and some MPs renewed calls for a new Gambling Act to replace current legislation.

The licence fee adjustment takes effect on Oct. 1, 2026. DCMS said the change is intended to stabilise the regulator’s finances while Parliament considers broader taxation and legal reforms.