The UK government has confirmed that gambling licence fees will increase from October 2026 following the conclusion of a consultation on how the Gambling Commission should be funded in the coming years.
The Department for Culture, Media and Sport (DCMS) published its response to the consultation, which ran between January and March. The outcome establishes a revised fee structure designed to support the Gambling Commission’s regulatory responsibilities, including work connected to reforms outlined in the Gambling Act Review White Paper.
Under the new framework, license fees will rise by 25% overall. While the increase applies across the sector, the exact impact will vary depending on the type of license held. The government will also introduce new fee categories for most operating licenses.
The changes still require secondary legislation before taking effect. If approved, the revised fees will come into force in the United Kingdom on 1 October 2026.
New Fee Structure Brings Different Outcomes Across Sectors
The government’s response outlines several key elements of the updated system. Operating license fees will increase by 25%, while personal licenses, supplementary operating licenses, single machine permits, applications to vary operating licenses, and changes in corporate control will also face a 25% rise.
One notable exception involves society lotteries, whose fees will remain unchanged.
The government will also introduce a different method for calculating fees for holders of non-remote general betting limited licenses. Rather than relying on days of operation, these licenses will be assessed using a market-share approach based on gross gambling yield (GGY). This category primarily covers on-course bookmakers.
According to the Gambling Commission, operators should review the detailed annexes accompanying the government’s response because fee adjustments differ across license categories. The regulator said businesses will receive further guidance in the coming weeks, including information about any new category assignments.
The Commission added that fee classifications will be determined using operators’ submitted regulatory return data for the 2025-26 reporting period.
Government Chooses Midpoint Option After Consultation
Before reaching its decision, DCMS examined several alternatives. Officials considered a 30% increase, a 20% increase, and a 20% increase combined with an additional 10% charge earmarked for work relating to illegal gambling and revenue protection.
Ultimately, the department selected a standalone 25% increase.
Consultation responses showed that gambling operators broadly opposed any increase in fees. Many companies argued that the industry had already absorbed multiple cost increases in recent years.
Despite those objections, the government concluded that a phased introduction of higher fees was unnecessary. Officials acknowledged the financial pressures facing operators but maintained that license fees remain a relatively small proportion of annual gross gambling yield.
The department also rejected suggestions that fee increases should be introduced gradually, arguing that such an approach would complicate the system without delivering significant benefits.
Illegal Gambling Funding Remains a Point of Disagreement
The consultation also highlighted differing views between government and industry over funding efforts aimed at combating illegal gambling.
Some operators opposed using license fee increases to support enforcement activity against unlicensed operators. Instead, they argued that government departments should bear those costs directly.
The issue has gained prominence as both the government and the gambling industry have increasingly focused on the growth of unlicensed gambling activity.
According to figures cited by the Betting and Gaming Council, more than £16 million was wagered on illegal gambling platforms during 2025. Policymakers have expressed concern about the effect of such activity on consumer protection efforts and tax receipts.
Alongside tax changes introduced for gambling operators, the government previously announced an additional £26 million in funding for the Gambling Commission to strengthen enforcement against illegal gambling.
Authorities have also established a dedicated DCMS Illegal Gambling Taskforce led by Gambling Minister Baroness Twycross. The taskforce is expected to examine several issues, including payment systems linked to unlicensed operators and the possibility of restricting sponsorship arrangements between unlicensed gambling companies and English sports teams.
While industry groups have generally welcomed stronger action against illegal gambling, the consultation responses indicate less support for using higher license fees to finance those initiatives.