The British gambling sector is facing another significant intervention. The government is considering increasing license fees for gambling operators by 30%. The goal is not to generate profit, but to fund the battle against illegal gambling.
The consultation launched on January 27 and will run until March 30. The objective is clear: the Gambling Commission requires more funds to supervise the industry, enforce regulations, and tackle the black market.
Regulator facing deficits
License fees in the United Kingdom have not been adjusted since 2021. During this period, the Gambling Commission invested heavily in enforcement, data analysis, and the implementation of reforms from the Gambling Act Review White Paper. At the same time, the budget has eroded year after year due to rising costs and inflation.
According to the consultation document, the regulator is currently operating with hollowed-out reserves. Without additional revenue, the current level of market oversight cannot be sustained.
Three options, one clear direction
Three scenarios are on the table. The regulator’s preference is for an average increase of 30%. This would generate an additional £8.7 million annually—enough to continue current operations, though without room for expansion.
An alternative involving a 20% increase would force the regulator to make cuts. This could lead to fewer investigations, fewer inspections, and even a ten percent reduction in staff. The government itself leans towards a combination: 20% for base operations and 10% reserved specifically for a targeted approach against illegal gambling.
Illegal market as the primary driver
Notably, the focus is on where this extra money will go. It is not destined for administration, but for making it harder for illegal operators to reach British players. The government wants consumers to spend their money with licensed providers, rather than on shady platforms lacking oversight.
This is no coincidence. Members of Parliament and industry organizations have previously warned that stricter rules and higher taxes could inadvertently drive traffic to illegal gambling. The government now appears to be actively seeking to mitigate that risk.
Sector already under heavy pressure
This potential fee increase comes on top of previous measures. In April, the Remote Gaming Duty will rise from 21% to 40%, and the tax on online betting will increase to 25%. Furthermore, a mandatory levy for addiction prevention and stricter checks on players’ financial affordability were introduced last year.
For many companies, the pressure is mounting. However, for the UK government, the message is clear: without a strong regulator, the legal market will lose ground to the black market.