Licence Fees for UK Gambling Operators to Rise by 25% This October
Starting October 1st, UK gambling licence fees will rise by 25% as part of a new funding model for the Gambling Commission. The reform, approved by the Department for Culture, Media and Sport, aims to adjust how the regulator’s income is generated, but the Betting and Gaming Council (BGC) warns that this will intensify financial pressures on operators and underscores the need for increased regulatory accountability.
The Department for Culture, Media and Sport confirmed that from October, the revised funding structure will boost the Gambling Commission’s overall licence fee income by 25%. The changes also involve a new method for calculating certain operating licence fees.
The BGC, which advocates for licensed betting and gaming companies, expressed concern that the fee hike compounds existing financial burdens on regulated businesses. They also called on the Gambling Commission to ensure that the increased funding is accompanied by greater transparency, accountability, and efficiency.
The government’s plan follows a consultation period held from January to March, during which stakeholders discussed higher and restructured fees to better fund the Gambling Commission, the authority responsible for overseeing gambling in Great Britain.
Effective from October 1st, fees for personal licences, supplementary operating licences, and single machine permits will all increase by 25%. Additionally, most operating licence fees will transition from the previous calculation method to a new system based on gross gambling yield (GGY), which measures gambling revenue after payouts.
The government has also announced a freeze on fees for society lotteries. Furthermore, non-remote general betting (limited) licence holders will adopt a new fee model based on GGY. Under the new framework, licence fees will vary according to licence type, with new bands introduced to better reflect the size and nature of different businesses. The Department for Culture, Media and Sport noted that the revised structure aims to more accurately align fees with operational scale.
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More than 1,100 operators with annual GGY below £10 million are expected to pay lower fees in cash terms. Despite this, the government believes the changes will help establish a more sustainable funding model for the regulator.
The BGC has urged caution, emphasizing the impact of multiple recent financial changes on the industry. In particular, the association linked the fee increase to recent tax hikes and the introduction of a statutory levy, emphasizing the cumulative effect on licensed businesses.
A spokesperson from the Betting and Gaming Council stated: “Our members recognise the importance of a well-funded Gambling Commission. However, these increases add to the financial pressures already facing the regulated betting and gaming sector.
“Following recent tax rises and introduction of the statutory levy, it is vital these additional costs do not undermine investment or jobs, or increase the advantage of illegal gambling operators, who pay no tax and offer none of the protections found in the regulated sector. “Any increase must be matched by greater accountability, transparency and efficiency from the regulator, with a continued focus on evidence-led regulation that protects consumers.” UK Gambling Licence
