UK gambling licence fees to rise 25%

Fee increase approved for October

The fees paid by gambling operators to fund the activities of the Gambling Commission will increase by an average of 25% from October 1, following a consultation conducted this year by the Department for Culture, Media and Sport (DCMS).

The new rates will be introduced through secondary legislation and will affect different licence categories in different ways.

Smaller operators to receive relief

According to the DCMS, more than 1,100 operators generating less than £10 million in annual Gross Gambling Yield (GGY) — the amount retained after paying winnings — will see their licence fees reduced in cash terms despite the overall increase.

The government said the revised structure aims to better reflect the scale and activity of individual operators.

Changes for racecourse bookmakers

One of the most significant changes will affect on-course bookmakers operating at racecourses.

Under the new framework, licence fees will no longer be linked to the number of days a bookmaker operates at racing events. Instead, fees will be calculated according to each operator's Gross Gambling Yield.

Industry warns of financial pressure

The Betting and Gaming Council (BGC) expressed concern about the additional financial burden facing the regulated sector.

A spokesperson for the organization said that while operators recognize the importance of maintaining a properly funded regulator, the latest increase adds to a series of recent costs imposed on the industry, including tax increases and the introduction of the statutory levy.

The BGC also warned that higher costs could negatively affect investment and employment while strengthening the position of illegal operators that do not contribute taxes or comply with consumer protection requirements.

Calls for greater regulatory accountability

The industry body argued that any increase in licence fees should be accompanied by greater accountability, transparency and efficiency from the regulator, alongside a continued commitment to evidence-based regulation.

Gambling Commission cites funding needs

The Gambling Commission reported annual income of £27.9 million in its latest financial year, excluding revenues associated with regulating the National Lottery.

According to the DCMS, the regulator has significantly increased investment in areas such as combating the illegal gambling market and implementing reforms stemming from the 2023 gambling white paper.

The government added that inflationary pressures and increased operational demands have led to consecutive budget deficits and a depletion of the regulator's financial reserves.

Greater certainty for future operations

The Gambling Commission stated that the outcome of the consultation provides greater certainty regarding its financial resources for the coming years, allowing it to continue delivering its regulatory responsibilities and implementing ongoing reforms in the British gambling market.