The Department for Culture, Media and Sport (DCMS) has published a consultation on proposed changes to the funding model for the UK Gambling Commission, opening a review of licence fees for the first time since 2021.
The consultation will run until 29 March 2026, with any changes expected to take effect from 1 October 2026 through secondary legislation.
The review follows commitments made in the Government’s 2023 Gambling Act Review white paper, which recognised the need to ensure the regulator has sufficient resources to deliver new policy reforms and maintain oversight of a growing and increasingly complex gambling market.
Speaking to Global Gaming Insider, the Gambling Commission referenced that it has advised ministers that a 30% uplift in fees would be required to maintain its current level of regulatory activity.
Fees have not increased since 2022 despite rising costs and expanded responsibilities.
DCMS is consulting on three options: a headline 30% increase; a 20% increase; or a 20% increase plus an additional 10% ringfenced for tackling illegal gambling and protecting licensed operators’ revenues. The third option is the Government’s preferred approach.
Under the maximum proposal, the Commission’s income as a proportion of total industry gross gambling yield would rise from 0.21% to 0.28%.
Global Gaming Insider also reached out to the Betting and Gaming Council (BGC) for comments, to which the trade body raised concerns about the potential impact on licensed operators.
In its response, BGC stated: “These initial proposals would add a further significant cost burden on licensed operators at a time when the sector is already absorbing major tax rises from the Autumn Budget.
“Even on the Government’s own figures, the maximum option has a full-year effect of an additional £8.7m ($12m) in fees. We support robust action to tackle the harmful black market, but ministers and the Gambling Commission must ensure any increase is proportionate, transparent and delivers clear value for money.
“The regulated sector supports 109,000 jobs, contributes over £4bn in tax and generates £6.8bn for the economy, and squeezing licensed businesses will only strengthen the unsafe, unregulated, harmful black market, which pays no tax and offers none of the protections that exist in the regulated sector.
“The harmful black market threat is real, with currently 1.5m Brits staking up to £4.3bn a year with illegal operators, who target UK customers and undermine player protections.”
Any changes would take effect from 1 October 2026, following secondary legislation.
The consultation period hopes to offer stakeholders an opportunity to shape the final decision, with the outcome likely to influence both the Commission's capacity to deliver its regulatory mandate and the competitive dynamics between licensed and unlicensed operators in the British market.
Gambling Commission licence fees currently account for just 0.21% of total UK industry gross gambling yield
