The UK Government has confirmed that it will increase most Gambling Commission licence fees by 25% from 1 October 2026, a move aimed at strengthening the regulator's funding amid the most significant overhaul of the sector since the review of the Gambling Act 2005. The decision was announced by the Department for Culture, Media and Sport (DCMS) following a public consultation held between 27 January and 30 March 2026, which received 47 submissions from operators, suppliers, trade associations and other industry stakeholders.
The reform was approved by the DCMS, led by Secretary of State Lisa Nandy MP, and will be implemented through secondary legislation, without the need for a new primary Act of Parliament. During the consultation, the Government assessed three alternatives: a 30% general increase, a 20% increase, and a third option combining a 20% increase with an additional 10% ring-fenced specifically to strengthen action against the illegal gambling market. After reviewing industry feedback, the Government opted for a middle-ground solution with a 25% increase across most licence fees.
Lisa Nandy MP
The revised fee structure will apply to application fees, operating licences, first annual fees, personal licences, licence variations, changes of corporate control, supplementary operating licences and individual gaming machine permits. First annual fees will continue to be charged at 75% of the full annual licence fee.
The Government also confirmed that it will freeze licence fees for society lotteries in order to protect funding for charitable causes, while maintaining existing fees for ancillary lottery licences. In addition, the charging structure for on-course bookmakers will be reformed, moving from a system based on operating days to one linked to Gross Gambling Yield (GGY). According to the DCMS, this change will reduce fees for 44% of operators in that category, while 53% will face only modest increases, typically around £22.
The Government justified the increase by stating that the Gambling Commission is facing an annual funding shortfall of approximately £4 million. Even with the 25% fee increase, the regulator will still be required to deliver £8 million in efficiency savings over the next five years. At the same time, ministers rejected the proposal to finance enforcement against the illegal market through licence fees, confirming instead that HM Treasury will continue to provide a separate £26 million funding package over three years to strengthen compliance and enforcement against unlicensed operators.
The Gambling Commission, which is responsible for licensing operators, overseeing regulatory compliance, enforcing AML/KYC requirements, sanctioning breaches and combating illegal gambling across Great Britain, will continue implementing its "Regulating Gambling in the Digital Age 2024–2027" strategy as operators prepare for the new fee structure to take effect on 1 October 2026.
