PAYMENTS & COMPLIANCE
No one likes their rent going up, but a better-funded Gambling Commission benefits us all
Felix Faulkner
The GC’s remit has expanded dramatically since its inception in 2005, moving far beyond its initial scope. The modern regulatory landscape requires greater resources for enforcement, public protection, and operator services.
KEY DRIVERS FOR INCREASED FEES • Increased Staffing: To improve service delivery to operators and enhance public protection.
• Enhanced Enforcement: To provide the necessary manpower and financial resources to address illegal or “rogue” operators, whether on the high street or online.
• Inflation/Cost of Living: The GC, like any organization, is impacted by general economic inflation and the need to pay its staff competitively.
Felix Faulkner, Associate Solicitor for gambling licensing law firm Poppleston Allen, shares the legal view.
T
he recent announcement regarding proposed increases to the Gambling Commission (GC) licensing and operating fees by the DCMS has sparked understandable concern within the industry. Particularly after the 40% tax blow handed down to us from Labour’s last budget.
But while the proposed hikes (ranging from 20% to 30%, or a 20% increase plus a 10% ring-fenced amount for tackling illegal markets) are unwelcome news for operators already facing substantial costs, a legal and operational perspective suggests that these increases were perhaps inevitable.
THE RATIONALE BEHIND THE FEE HIKE
The fees have not been substantially increased since 2020/2021. Given the operational demands placed on the GC, a rise was anticipated. My expectation is that this increase is fundamentally driven by the need to cover the Commission’s rising operational costs and to expand its capacity to perform its statutory duties effectively.
10 MARCH 2026 GIO
• Industry Growth (GGY): The total Gross Gambling Yield (GGY) for the industry has significantly increased, from £9.1 billion (2020/2021) to £13.4 billion (latest figures). The GC views this growth as justifying a greater contribution from the industry to fund its regulation.
OPERATOR OBLIGATIONS AND THE WHITE PAPER
The increase in fees is necessary to allow the GC to function effectively and ensure the gambling sector can continue to operate responsibly within the UK. A well-resourced, effective GC is ultimately beneficial for the long-term health and reputation of the industry. It should be noted that the rise in fees aligns with the broader regulatory changes stemming from the Gambling Act review White Paper. Delaying the increase until after the COVID-19
The GC’s remit has expanded
dramatically since its inception in 2005, moving far beyond its initial scope
- Felix Faulkner
period suggests a calculated decision by the DCMS and GC to implement it at a time they deem appropriate.
THE CONSULTATION PROCESS: AN OPPORTUNITY FOR INFLUENCE The DCMS consultation is currently open, presenting operators with a critical, albeit potentially frustrating, opportunity to voice their concerns and preferences.
The consultation puts forward three main options: Option 1: A 30% increase. Option 2: A 20% increase (the most favourable percentage from an operator’s perspective).
Option 3: A 20% increase plus an additional 10% ring-fenced for tackling illegal markets. Furthermore, the proposals include a First Annual Fee for new licenses, set at 75% of the standard annual fee, maintaining the current structure.
While there is a prevailing industry sentiment that consultations are often “lip service,” and the regulatory body has likely pre-determined its course (potentially favouring the 30% or Option 3 increase), it remains crucial for operators to participate.
ADVICE TO OPERATORS: • Respond to the Consultation: Operators should take the time to respond formally to the DCMS, providing a reasoned explanation as to why they believe Option A, B, or even a different, unlisted option is the most appropriate.
• Provide Detailed Rationale: Simply stating opposition is insufficient. Responses must articulate the financial strain and operational impact of the proposed fee hikes, justifying a lower increase.
• Seize the Influence: Participation ensures that operators are involved in the process and have a documented attempt to influence the final outcome. Failing to respond leaves the process entirely to the regulators. Ultimately, a better-funded Gambling Commission translates to a better-regulated industry, which is in everyone’s interest. However, operators must utilise the consultation period to mitigate the financial burden as much as possible. It is a tough pill to swallow, but industry funding of the GC has always been, and will continue to be, the mechanism by which the regulator functions.
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