Britain is considering raising licence fees paid by gambling operators by as much as 30%, according to government consultation documents from the Department of Culture, Media and Sport (DCMS).
The documents set out three options to increase annual fees paid to the UK Gambling Commission, which has warned its financial reserves will be exhausted by 2026/27 without additional funding.
The proposals provide a detailed picture of how the government and regulator are weighing fee reform. The options include a 30% flat increase, favoured by the Gambling Commission, a 20% rise that would force significant cutbacks, and a 20% increase plus an additional 10% ring-fenced specifically to combat illegal gambling, which is the government’s preferred approach, the documents show.
Under the plans, any fee changes would take effect from Oct. 1, 2026, following consultation with industry stakeholders, which is expected to run until March 29.
Licence fees were last reviewed in 2021, but since then the regulator’s costs have risen sharply due to expanded enforcement activity, efforts to disrupt the illegal market, implementation of Gambling Act reforms and higher inflation.
The documents show the Commission has run successive budget deficits, using £3.1 million ($4.27 million) of its reserves in 2024/25, with a further £5 million ($6.89 million) forecast to be drawn down in 2025/26, against an annual income of £27.9 million.
“Forecasted costs will increase in future years, and without a fee uplift in October 2026, the Commission’s reserves are expected to be completely exhausted during the 2026 to 2027 financial year,” the consultation document says.
Without higher fees, the regulator forecasts a £7 million deficit in 2027/28, widening to £9.5 million by 2030/31, it added.
The Commission’s preferred 30% increase would raise about £8.7 million annually, allowing it to maintain existing enforcement, data and stakeholder engagement programmes. In 2024/25, the regulator issued 516 cease-and-desist notices and facilitated the removal of 95,705 illegal gambling URLs.
A smaller 20% increase would generate £3.1 million less, requiring savings of £15.8 million over six years, including a 10% staff reduction, while largely ending proactive efforts against unlicensed operators.
The government’s preferred option would still result in a 30% headline increase, but would ring-fence around £2.6 million a year for illegal-market enforcement, including investigations into match-fixing and suspicious betting activity. Recent probes have included alleged cheating linked to the 2024 UK general election and irregular betting patterns in horse racing.
However, the documents show that even under this option, the Commission would need to divert £1.4–£1.5 million annually from other activities and make efficiency savings elsewhere.
The proposed fee hikes come as gambling operators already face rising tax burdens, including an increase in remote gaming duty to 40% from April 2026 and a new 25% general betting duty for remote gambling from April 2027.
Industry groups have warned that higher taxes and fees could push players toward unlicensed sites. Research by Yield Sec estimates illegal online gambling is approaching 10% of the UK market.
In the November Budget, the government pledged an additional £26 million over three years to help the regulator combat illegal gambling.
The documents also outline plans to remove the requirement for the DCMS Secretary of State to enact fee changes through secondary legislation, allowing the Gambling Commission to consult and implement changes directly, similar to Ofcom and the Financial Conduct Authority.
Original article: https://www.yogonet.com/international/news/2026/01/28/117323-uk-weighing-gambling-licence-fee-hikes-by-as-much-as-30-
