The Gambling Commission in Great Britain is set to increase license fees for the majority of gambling operators by 25% starting October 1, 2026. This decision follows confirmation from the Department for Culture, Media and Sport (DCMS) regarding the fee adjustment.
The fee hike will be implemented through secondary legislation and will affect most types of licenses. Currently, the Commission is grappling with an annual budget shortfall of approximately £4 million ($5.36 million) and anticipates needing to secure an additional £8 million ($10.72 million) in efficiency savings over the next five years, even with the fee increase.
The final 25% increase is less than the 30% initially proposed during the consultation phase, which took place from January 27 to March 30, 2026. During this period, the DCMS received 47 responses, primarily from operators, suppliers, and industry representatives.
Three potential options were evaluated: a flat 30% increase, a flat 20% increase, or a 20% increase with an additional 10% earmarked for efforts against illegal gambling. Ultimately, only two respondents supported the 30% option, and none favored the earmarked increase. The DCMS decided against all three proposals and opted for a straightforward 25% increase without any earmarking.
This adjustment comes at a time when gambling operators are already facing rising costs, including new gambling duty rates and an impending statutory levy for research, prevention, and treatment initiatives.
The 25% increase will apply to personal licenses, supplementary operating licenses, single machine permits, license variations, and changes in corporate control. The first annual fees will still be charged at 75% of the annual rate.
DCMS also dismissed requests from operators for a gradual implementation of the fee increase, stating that license fees represent a minor portion of the gross gambling yield (GGY) across the industry, regardless of the operator's size.
For operators with a GGY exceeding £100 million ($134 million), fees will rise from approximately 0.1% to 0.15% of GGY. Those with GGY between £10 million ($13.4 million) and £100 million ($134 million) will see their fees increase from about 0.18% to around 0.22% of GGY. Conversely, over 1,100 operators with GGY below £10 million ($13.4 million) will experience a reduction in fees in cash terms.
On-course bookmakers will not uniformly experience the same fee increases as other license holders. Operators under the general betting limited category will transition from a fee structure based on operational days to one based on GGY.
Previously, the lowest fee band charged £230 ($308.20) for operations ranging from one to 75 days. Starting October 1, 2026, the lowest band will require a payment of £252 ($337.68) for operators with GGY under £100,000 ($134,000). According to DCMS data, this revised fee structure will lower costs for 44% of operators in the general betting limited category, while an additional 53% will see only a modest increase of £22 ($29.48).
Fees for society lottery licenses will remain unchanged, as the DCMS expressed concerns that higher fees could diminish the funds available for charitable causes. However, external lottery managers, being commercial entities, will be subject to the full 25% increase.
It is important to note that the fee increase will not finance the Commission's separate initiatives against unlicensed operators, which are being supported by £26 million ($34.84 million) in additional Treasury funding over three years, a decision made earlier.
This final decision means that most operators will face increased regulatory costs starting in October, while society lotteries will be fully exempt, and on-course bookmakers will shift to a yield-based model that the DCMS anticipates will impact operators differently within that sector.