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UK gambling operators could be looking at another cost increase, with the Department for Culture, Media and Sport (DCMS) opening a formal consultation on raising Gambling Commission licence fees. The consultation went live on 27 January and runs until 11:59pm on 29 March 2026, inviting responses from operators, trade bodies, consumer groups, local authorities and the wider public.
According to the written statement, three fee-hike models were published, all of which lift annual operating fees (and some application fees) to close what the regulator describes as a funding gap. The Commission says it needs more fee income because it has been running annual budget deficits, with reserves drawn down after a period of higher spend and inflation pressure.
Gambling Commission says it needs more money
The released material mentioned a heavier regulatory workload since the last fee review in 2021. DCMS and the Gambling Commission say a funding gap that has widened since then.
The document also says the Commission has stepped up work in areas such as disruption of illegal gambling, delivery of Gambling Act Review reforms, and improvements to its data capability, while also absorbing inflationary pressure.
It is clear, then, that the regulator has been running annual deficits and has had to dip into reserves to keep its programme running, according to the document.
The three options being floated
Option 1: 30% average increase (Gambling Commission’s preferred option)
This approach would raise annual operating licence fees by around 30% on average. The consultation estimates it would generate about £8.7m more per year, which the regulator says would cover the gap between current fee income and the cost of its chargeable work—enough to keep the current work programme running without adding new regulatory “extras.”
Option 2: 20% increase
A 20% uplift would still increase funding, but the Commission says it would need to find savings over the coming years, with the consultation warning this could mean slowing or stopping some workstreams and focusing enforcement on only the most serious cases.
Option 3: 20% + 10% ring-fenced (government’s preferred route)
DCMS’s preferred model keeps the headline 30% uplift, but splits the money: 20% goes into general operating costs, while an extra 10% is ring-fenced for specific priorities—particularly illegal gambling and stronger enforcement capability. The consultation estimates £2.6m would be set aside under this ring-fenced slice.
What it could cost operators in real terms
The licence fees in U.K aren’t one-size-fits-all. They vary by licence type (casino, betting, bingo, etc.) and are set in bands based on scale.
DCMS included illustrations showing how a 30% rise could hit larger remote operators particularly hard. For example, the government notes that a major remote casino operator currently paying in the hundreds of thousands of pounds per year could see that annual figure move into seven figures, depending on its fee band.
The consultation also makes clear that any uplift would apply to a licence holder’s existing fees, meaning the percentage increase lands on top of the current banded system, rather than replacing it.
After the consultation closes in late March, DCMS will review submissions and decide whether to move ahead
If it does, any change would be delivered through secondary legislation, with implementation expected from October 2026.
With this, the fee debate is now live, and it’s happening at a time when many businesses are already watching the silent increase in handling costs closely, from compliance upgrades to wider tax and regulatory pressure in the UK market.
Source: GOV.UK
