DCMS confirm 25% increase in Gambling Commission licence fees from October 

The government’s Department for Culture, Media and Sport has announced a revised package of Gambling Commission licence and application fee increases, set to take effect from 1 October 2026. 

The decision, announced on Tuesday, abandoned the three options previously consulted on earlier this year, settling on a headline 25% uplift across most licence categories. This will be alongside a small number of targeted exceptions, including society lotteries.

A public-run consultation from 27 January to 30 March generated 47 responses primarily from gambling operators, suppliers and sector representatives.

The department said in January that any intended increase would plug funding shortfalls and strengthen enforcement, including against illegal operators.

But the move lands only months after the government announced steep tax rises that have raised the cost of doing business substantially. 

DCMS threw out 20%, 30% and ringfenced black market fee rise options

After receiving pushback from the sector, DCMS opted against its initially proposed options of a 30% rise; a 20% rise; or a 20% rise plus an additional 10% ringfenced for illegal-market enforcement.

A standard 25% increase to most Gambling Commission fees was agreed, covering operating licence fees, application fees, first annual fees, personal licences, variations and corporate control changes. 

First annual fees will continue to be charged at 75% of the full annual fee, while supplementary operating licence fees and single machine permit fees will also increase by 25%.

However, some verticals have been shielded from the increase, as fees for society lotteries will remain frozen in order to preserve funds available for good causes. Ancillary society lottery licence fees will also stay at their current levels.

For on-course bookmakers, the fee structure for general betting (limited) operating licences will shift from being based on the number of operating days to a market share model measured by gross gambling yield (GGY). 

According to DCMS, this change is expected to reduce fees for 44% of operators in the category, while 53% will experience only modest increases, typically of around £22.

Spare change 

DCMS also rejected the commission’s call to ringfence fees to tackle the illegal gambling market.

Instead, the Gambling Commission will continue implementing its illegal-market strategy with support from a separate £26 million funding commitment from HM Treasury over three years.

Both DCMS and the Gambling Commission emphasised that the fee hike was necessary to prevent significant reductions in regulatory activities.

The regulator faces an annual budget shortfall of approximately £4 million. Even with the proposed 25% fee rise, a further £8 million in efficiency savings will be required over the next five years.

DCMS reemphasised that licence fees were calculated on a cost-recovery basis, meant to cover the Commission’s operating costs. The revised fee structure adjusts charges relative to operator activity or market share. 

For example, major operators with annual GGY over £100 million will see fees increasing from roughly 0.1% to about 0.15% of GGY.

The department also highlighted that for larger remote and non-remote operators, annual fees may reach six figures or more, reflecting their market presence.

Industry response

The majority of consultation respondents opposed any fee increases. Concerns cited the cumulative financial pressures from recent duty changes and the introduction of a statutory levy, the proportionality of applying flat percentage increases to lower-harm activities and the funding mechanisms for illegal gambling enforcement.

When the DCMS first announced intentions to implement a fee increase, Bethan Lloyd, senior associate at Wiggin LLP, told iGB although the additional fees would be painful, “[this] isn’t going to be the straw that breaks the camel’s back”.

The changes will become law through secondary legislation and are scheduled to come into effect on 1 October 2026.