Government settles on 25% fee rise for Gambling Commission after rejecting all consultation options

The government has confirmed it will introduce a 25% increase to Gambling Commission operating licence fees from 1 October 2026, rejecting all three options originally put forward in last year’s consultation.

In its official response, ministers said none of the proposed models – a 30% uplift, a 20% uplift, or a 20% uplift with an additional 10% ringfenced for tackling the illegal market – struck the right balance between industry pressures and the Commission’s funding needs. Instead, the government opted for a new fourth option, designed to provide “sufficient and stable” resourcing while avoiding the higher costs operators strongly opposed.

Under the revised plan, society lottery fees will be frozen, and general betting (limited) licences will move to a gross gambling yield‑based structure, replacing the current days‑of‑operation model. The government said this change better reflects the scale of operators’ activity, noting that around 44% of licensees will see a fee reduction and most others will face only modest increases.

Personal licences, supplementary operating licences, single‑machine permits, variations and changes of corporate control will all rise by 25%, while first‑year annual fees will remain set at 75% of the standard annual rate. Requests from operators for a phased introduction were rejected, meaning the full increase will apply immediately in October 2026.

Ministers also confirmed that work to combat the illegal online market will not be funded through ringfenced operator fees. Instead, the Gambling Commission will receive £26 million in Treasury grant‑in‑aid to support enforcement activity.

The government said the 25% model provides a “proportionate and sustainable” settlement, arguing that a 20% rise would leave the regulator facing significant cuts, while the 30% option and ringfenced funding proposals attracted almost no support during consultation.