Starting October 1, 2026, gambling operators in the UK will face a 25% increase in fees for most licenses issued by the UK Gambling Commission (UKGC). This change comes as the Department for Culture, Media and Sport (DCMS) confirmed the hike, which is aimed at supporting the regulator's growing responsibilities and addressing a significant funding shortfall.
The DCMS released its formal response on June 30, following a public consultation that took place from January to March. This announcement brings clarity after months of speculation regarding the potential rise in licensing fees.
Most fees related to operating licenses, application submissions, personal license supplements, and single-machine permits will see a 25% increase. Notably, remote operators and larger gambling firms, particularly online casinos and sportsbooks, will experience the most substantial hikes due to the fee structure based on gross gambling yield (GGY) bands. For instance, operators with a GGY exceeding £100 million will see their fees rise from approximately 0.1% to 0.15%. This means that an operator with a GGY of £100 million will see their license fees increase from around £100,000 to £150,000.
Interestingly, over 1,100 smaller operators with an annual GGY below £10 million will actually pay less in absolute terms, even as the regulator's total fee income rises. The UKGC's financial reports for 2024-2025 indicate that license fee income currently stands at £27.4 million, which the fee increase will elevate to about £34.3 million, depending on the number of operators remaining in the market.
The DCMS emphasized that the fee increase is crucial for addressing the UKGC's structural funding deficit, which currently sits at around £4 million annually. Additionally, the Commission needs to find another £8 million in savings over the next five years to maintain its operations without implementing more severe cuts.
Despite receiving 47 responses during the consultation, mainly from licensed operators and industry bodies, nearly all opposed any fee increases. However, the DCMS determined that an increase was essential to prevent deeper cuts to the regulator's activities, which the government considers vital.
The consultation suggested various options, including a 20% increase, a 30% increase, or a hybrid model combining a 20% increase with an additional 10% for initiatives aimed at reducing gambling harm. Ultimately, the decision was made to implement a 25% increase, with only two out of 37 respondents supporting the 30% option.
Additionally, the government has implemented certain exemptions, such as freezing fees for society lotteries to ensure that more funds are directed toward charitable causes. Changes are also being made to general betting licenses, transitioning from a fee structure based on the number of days worked to one based on GGY, which will benefit many operators.
This fee increase is part of a broader trend of rising costs for licensed operators, who have already been dealing with a statutory levy introduced in September 2025 and a remote gaming duty increase to 40% that took effect in April 2026. A new 25% Remote Betting Duty is also set to be introduced in April 2027.
Licensed operators have voiced concerns that offshore competitors face no regulatory costs, which could drive customers towards unregulated markets. The Betting and Gaming Council (BGC) warns that the ongoing rise in operational costs poses a risk of pushing consumers into the black market.