DCMS & Gambling Commission Proposed Licence Fee Boost, Up to 30%

The British government is discussing another jump in licensing fees for iGaming operators. The consultation kicked off on 27 January, and the process will be in progress for around two months, until 30 March. If approved, new rules may come into play from October 2026, allegedly. The UK Department for Culture, Media and Sport (DCMS) reports on it.

Reasons for Increased Licence Fees & Uplift Options

According to DCMS, the Gambling Commission of Great Britain has bumped into a budget shortfall. Expenditures have mainly grown due to the combat against illegal operators (black market). Besides that, the development of analytical systems and the implementation of gambling legislation reforms take a significant part of funding. Among the additional pressures is inflation.

For reference, the last revision of gambling regulator fees was in 2021.

To remedy the UKGC’s budget shortfall three uplift options for annual fee shifts are proposed:

• Scheme 1 – 30% uplift;
• Scheme 2 – 20% uplift;
• Scheme 3 – 20% + 10% uplift.

Let us explain the last alternative. Here, 20% means a rise in the yearly fee and 10% earmarked for combating unregulated services in the GB market.

While so, fee increases will vary across iGaming operators instead of being distributed evenly. Reportedly, the way costs are calculated will depend on factors such as:

• licence category;
• company size;
• regulatory-related risk.

Potential Impact of Boosted Fee Approval

First scenario, with a 30% uplift, will help boost the Gambling Commission funding to £8.7m per year. This will allow UKGC to invest in high-priority areas and projects. For instance, level up in protecting the revenues of UK-licensed casinos and preventing criminal activity.

Second scenario, with a 20% uplift, does not look promising for the Commission, but rather a survival. It will let the regulator “stay afloat”... but there will be no talk about any serious development. Not going into the red, they will have to cut £15.8m from the plans during the next 6 years.

Third scenario, with a 20% + 10% uplift, has its benefits. The expense split will be between funding the main regulatory-wise operations and designated activities (£2.6m). Like making offshore platforms locked for GB consumers, among other things.

The UK government prefers the third scenario and relies on secondary legislation to address the shifts.

If approved, the operator fee changes would likely take effect in 6 months, from October 2026.

What if the Licence Fee Hikes Are Rejected

That will mean hard times for the British Gambling Commission's regulatory work. During 2024–2025, the authority spent £3.1m on the operations we mentioned earlier. UKGC plans to take £5m from the reserves by the end of 2026. If so, the budget will decrease to a critical minimum of £4m. If the consultation process ends with rejection, chances are the fiscal deficit reaches £7m by 2028 and scales further to £9.5m by 2031.

How Much Are UK Operators Paying Now?

This largely depends on the size of the business. The current yearly licence fee for iGaming operators with £1b+ in Gross Gambling Yield (GGY) amounts to nearly £794k. On top of that, they pay £125k extras for each additional £500m after the set mark. Operators with £550k to £1b GGY pay around £600k per year.

Smaller businesses pay less:

N.B. Regulator fees do not change across verticals. Sports betting, online casino & bingo services fall under the identical rate.

Additional Challenges for iGaming Operators

The licence fee boost may coincide with a rise in gambling-related taxes. From April 2026, remote casinos will pay 21%–40% of Gross Gambling Revenue (GGR). As for bookmakers, they will face the 15%–25% increase the following spring.

As a result, many businesses may consider cuts. Furthermore, the UK gambling market will likely see some mergers as regulations tighten.