The UK government is moving to increase gambling licence fees from October 2026, dealing another significant financial blow to an already pressured betting industry.
The Gambling Commission has struggled with budget deficits since operating licence fees were last reviewed in 2021, creating an urgent need for increased funding.
Financial reserves at the UKGC have been steadily eroded due to increased investment commitments across the regulator’s operations in recent years.
Projections show the Commission approaching its minimum reserve threshold of £4 million by the end of the 2025/26 financial year, a deeply concerning position for the regulator.
Without a fee uplift taking effect in October 2026, the UKGC has warned that its reserves will be completely exhausted during the 2026/27 financial year.
A consultation set out three possible options for increasing operating licence fees, with the government and the Commission backing different approaches.
Option 1 proposed a headline 30% increase, Option 2 proposed a 20% increase, and Option 3 proposed a 20% increase plus an additional 10% ringfenced specifically for tackling illegal gambling and protecting licensed operators’ revenue.
The government indicated a preference for Option 3, while the Gambling Commission itself recommended the more aggressive Option 1 increase.
Fees would be calculated based on market share and regulatory risk, with three licence categories receiving flat percentage increases based on current fee levels instead.
The three exempted licence types are General Betting Limited, External Lottery Manager, and Society Lotteries, which fall outside the market-share calculation model.
Any changes will be brought into force through secondary legislation, with an intended implementation date firmly set at 1 October 2026.
Operators are already contending with a remote gaming duty hike that moved from 21% to 40% in April, adding enormous cost pressure across the sector.
The general betting duty is also scheduled to rise to 25% from April 2027, meaning the financial squeeze on licensed operators shows no sign of easing.
The cumulative effect of these regulatory and tax changes is already reshaping commercial strategies across the market, particularly for operators running retail as well as online businesses.
Operators with a retail presence, such as Evoke, are reportedly considering strategic options to de-scale their businesses, including the potential closure of high-street betting shops.
