Key Moments
- DCMS opened a consultation on higher Gambling Commission license fees on 27 January. The process runs until 11:59pm on 29 March 2026.
- Three fee models are proposed, including a 30% average increase. This could raise an estimated £8.7m in extra annual income.
- Any approved changes would take effect through secondary legislation, expected from October 2026.
Consultation Opens on Funding the Gambling Regulator
UK-licensed gambling firms may face higher costs as the Department for Culture, Media and Sport (DCMS) launched a consultation on increasing Gambling Commission license fees. The process began on 27 January and closes at 11:59pm on 29 March 2026.
DCMS seeks input from operators, trade groups, consumer organizations, local authorities, and the public. The proposals aim to raise annual operating fees—and in some cases application fees—to address what the regulator calls a widening funding gap.
Rationale: Budget Deficits and Growing Workload
The consultation outlines three fee scenarios, all increasing annual operating fees. The Gambling Commission has run annual budget deficits and drawn on reserves due to elevated spending and inflationary pressures.
The regulator’s workload has expanded since the last review in 2021. DCMS and the Commission note that the funding gap grew over this period. Increased efforts to combat illegal gambling, implement Gambling Act Review reforms, and enhance data capabilities, all amid higher costs, have contributed to the deficit.
As a result, the regulator currently relies on reserves to maintain its programs.
Three Fee Models Under Consideration
DCMS proposed three distinct options to restructure fees, each with different impacts on the Commission’s budget and regulatory activities.
| Option | Headline Change | Estimated Additional Annual Income | Key Features |
|---|---|---|---|
| Option 1 | 30% average increase | £8.7m (approx.) | Preferred by the Commission; bridges the funding gap and sustains current programs without adding new initiatives. |
| Option 2 | 20% increase | Not specified | Raises income but may require savings, slowing or stopping some workstreams and focusing enforcement on serious cases. |
| Option 3 | 20% + 10% ring‑fenced | £2.6m ring‑fenced | Government’s preferred option; 20% for general costs, 10% ring‑fenced for priorities such as illegal gambling and enforcement. |
Details of Each Proposal
Option 1 – 30% average increase (Commission preferred)
This model raises annual operating fees by roughly 30% on average, delivering about £8.7m extra annually. The Commission says this would cover the gap between income and program costs, allowing current regulatory work to continue without new initiatives.
Option 2 – 20% increase
A 20% increase boosts revenue, but the regulator would need to identify savings in coming years. This could slow or stop some programs and focus enforcement on the most serious cases.
Option 3 – 20% + 10% ring‑fenced (government preferred)
DCMS favors dividing the 30% total increase into two parts. A 20% rise supports general operations, while 10% is ring‑fenced for priorities such as tackling illegal gambling and boosting enforcement. The consultation estimates £2.6m would fund the ring‑fenced portion.
Implications for Operators and Fee Structure
UK license fees vary by type—casino, betting, bingo—and by size band. DCMS provides examples showing that a 30% increase could be significant for larger remote operators.
For instance, a large remote casino paying fees in the hundreds of thousands of pounds per year could see costs rise into seven figures, depending on its fee band.
Any uplift applies on top of current banded fees, not as a replacement of the structure.
Next Steps and Timeline
After the consultation ends in late March, DCMS will review responses and decide whether to proceed with changes. If approved, revisions will take effect through secondary legislation.
Implementation is expected from October 2026. The decision comes as operators already face rising operational and compliance costs, alongside broader UK tax and regulatory pressures.
- Author
Daniel Williams
