U.K. gambling operators will pay 25% more to hold a UKGC license from October, adding another financial burden for an industry already facing higher gambling taxes, a statutory levy, and calls for further reform.
Britain’s gambling operators will pay 25% more for most U.K. Gambling Commission (UKGC) licenses from Oct. 1 after the Department for Culture, Media and Sport (DCMS) confirmed the increase. The government said higher fees are needed to help fund the regulator’s expanding responsibilities and address a structural funding shortfall.
DCMS published its formal response on June 30, following a public consultation held between January and March. The response ends months of uncertainty over how much license fees would increase.
Most operating license fees, application fees, personal license supplementary fees, and single-machine permits will increase by 25% from Oct. 1, 2026.
What the Rise Means for Big Operators
Remote operators and larger gambling businesses, particularly online casinos and sportsbooks, will see the largest increases. That’s because license fees are calculated using gross gambling yield (GGY) bands. DCMS figures suggest fees for the very largest operators, with GGY above £100 million, will increase from around 0.1% to 0.15%.
For an operator generating £100 million in annual GGY, license fees would increase from roughly £100,000 to £150,000.
The department says that over 1,100 smaller operators with an annual GGY of less than £10 million will pay less in cash terms. At the same time, the regulator’s total fee income rises.
The UKGC’s 2024-2025 accounts show license fee income at £27.4 million. The upcoming 25% increase would bring the total to about £34.3 million. However, the final total will depend on how many operators are still in the market once the new bands come into effect.
UKGC Dealing With a £4 Million Deficit
DCMS said the fee increase was necessary to help address the UKGC’s structural funding gap and avoid deeper cuts to the regulator’s work. According to the department, the Commission’s current annual budget deficits are around £4 million. Additionally, finding another £8 million in savings over the next five years is necessary.
The DCMS received 47 consultation responses, primarily from licensed operators, suppliers, and trade bodies. Almost all operator responses were opposed to any increases.
Despite the opposition, the DCMS concluded that an increase was unavoidable. The department said that the UKGC would otherwise need to make deeper cuts and step back from work that the government “deems important.”
The consultation proposed a 20% increase, a 30% increase, or a hybrid model combining a 20% increase with an additional 10% earmarked for gambling harm initiatives. Only two of the 37 respondents backed a 30% proposal, and no one supported the ringfencing idea. Officials ultimately chose 25%.
The government has built in some carve-outs and structural changes. Society lotteries will have their fees frozen, exempting them from the fee increase, ensuring more money goes toward good causes.
General betting (limited) licenses, which cover non-course bookmakers, are moving away from a fee model based on the number of days worked toward one based on GGY. DCMS says this removes a disincentive for bookmakers to attend smaller race meetings. Under the new structure, 44% of operators in this category will see their fees fall, and 53% face a rise of just £22.
Industry Pushes Back
The fee rise is the latest in a series of higher costs facing licensed operators.
The industry has already absorbed a statutory levy introduced in September 2025, a remote gaming duty increase to 40% that took effect in April 2026, and will face a new 25% Remote Betting Duty from April 2027.
Licensed operators argue that offshore operators pay nothing while avoiding the same regulatory costs. The Betting and Gaming Council (BGC) claims that continually rising costs risk pushing customers toward the black market.
The trade body has repeatedly argued that higher taxes and regulatory costs weaken licensed operators while making offshore sites more competitive.
The DCMS rejected the idea that general taxation rather than industry fees should fund illegal market monitoring. It declined operator requests to gradually phase in the increase, arguing that a phase-in approach would add administrative complexity.
Fresh Tax Proposals Add to Industry Pressure
The fee hike comes as campaigners and some Labour backbenchers continue pushing for tighter gambling regulation.
On the same day the DCMS published its consultation response, the Social Market Foundation (SMF) released a report calling for Machine Games Duty on Category B slot machines to be doubled to 40%. SMF estimated the proposal would generate an additional £450 million in annual tax revenue.
The think tank argues that the current duty, unchanged since its 2013 introduction, fails to reflect the harms associated with machine gambling. It estimates these machines cost the economy £2.33 billion annually against the roughly £600 million raised through the duty.
The BGC condemned the suggestion of doubling the Machine Games Duty. It said that doing so would “force venue closure, cost jobs and weaken high streets, while it benefits only the growing illegal gambling market.”
Separately, seaking at the SMF’s launch event, Alex Ballinger, the Labour MP for Halesowen and co-chair of the All-Party Parliamentary Group for Gambling Reform, called for work to begin on a new Gambling Act to replace current legislation. He argued the current framework is still just “scratching the surface” of harmful gambling causes.
Taken together, the license fee rise, the SMF’s tax proposals, and the renewed call for a new Gambling Act leave operators facing the prospect of further costs beyond those already scheduled over the next two years.
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