UK Gambling Commission Licence Fees Rise on 1 October 2026: New Costs for Operators and Change-of-Control Deals
The cost of entering, maintaining and acquiring a regulated gambling business in Great Britain changes from 1 October 2026.
Following a government review of the Gambling Commission’s funding, a new fee structure will apply across operating licences, applications, personal licences, licence variations and change-of-corporate-control processes. The government describes the reform as a headline 25% increase in licence fees, but that does not mean every operator’s individual fee will rise by exactly 25%. Many licence categories have been restructured, new gross gambling yield bands have been introduced, and some smaller operators may actually pay less in cash terms.
The reform is particularly relevant to remote casino, betting, bingo and gambling-software businesses preparing UK market-entry budgets. It also matters in M&A because UKGC change-of-control charges are linked to the application fee for the highest-value licensed activity held by the target.
The underlying 75% / 25% change-of-control formula is not new, but higher and restructured application fees can increase the transaction cost from 1 October. Fixed change-of-control amounts also rise from £160 to £200 in specified cases.
For readers’ convenience, we have placed the key official government and UK Gambling Commission materials at the end of this article.
Publish Date
30 Sep 2026
Reading Time
12 minutes
Category
Legal News
Jurisdiction
UK
Why UK Gambling Commission fees are changing
The Department for Culture, Media and Sport consulted on Gambling Commission funding between 27 January and 30 March 2026.
Three original options were considered: a 30% headline increase; a 20% increase; or a 20% increase plus another 10% ringfenced for illegal-market, revenue-protection and related work.
The government ultimately rejected all three options and adopted a separate 25% headline increase instead.
According to the government response, the change is intended to allow the Commission to continue recovering the costs of regulating the market and address increasing regulatory complexity. The response says the regulator has been operating with annual budget deficits of approximately £4 million and will still be expected to identify at least £8 million of efficiency savings over the next five years.
The funding changes are separate from the £26 million of additional Treasury funding over three years announced for work against illegal gambling.
The industry opposed much of the proposed increase
The consultation received 47 responses, primarily from gambling operators, suppliers and their representatives.
Most operator respondents favoured no fee increase and pointed to wider cost pressures, including gambling-duty changes and the statutory gambling levy. The government nevertheless concluded that additional licence-fee income was necessary to maintain the Commission’s regulatory work.
That context matters because licence fees are only one element of a UK operator’s regulatory cost base.
For market-entry and acquisition modelling, businesses should distinguish:
- Gambling Commission licence fees;
- gambling duties and taxes;
- the statutory gambling levy;
- technical and compliance costs;
- safer-gambling and AML controls; and
- transaction-specific regulatory charges.
The “25% increase” is a headline figure, not a universal uplift
The most important point for operators is that the fee reform should not be modelled simply by multiplying the existing licence fee by 1.25.
DCMS expressly states that the headline increase will not be distributed evenly across all types of operating licence.
Many licence categories have new revenue bands, and the relationship between annual GGY and the applicable fee has been reworked.
Smaller operators can see different outcomes
The government estimates that more than 1,100 operators generating less than £10 million in annual GGY will receive a reduction in fees in cash terms under the revised structure.
At the other end of the market, government modelling says fees for groups or operators generating more than £100 million in annual GGY would move from approximately 0.1% to around 0.15% of annual GGY.
For operators generating between £10 million and £100 million, the indicative ratio moves from around 0.18% to 0.22% of GGY.
These are government estimates across relevant categories rather than a substitute for calculating an individual operator’s fee.
Every licensee should check its actual activity and fee band.
Existing operators will be reclassified using 2025–26 regulatory return data
The new structure creates an immediate administrative issue for current licensees.
The Gambling Commission has stated that it will use operators’ submitted 2025–26 regulatory return data to determine alignment with the new fee categories.
That means historical reporting now has a direct fee consequence.
Operators should check whether:
- the correct GGY or other applicable metric was reported;
- all licensed activities are properly classified;
- revenue is allocated to the correct licence activity;
- group entities hold the licences the business assumes they hold; and
- the new UKGC fee category corresponds with the business’s actual current activity.
Where an operator has grown substantially since the reporting period, the ordinary rules for movement between fee categories should also be reviewed.
Remote casino fees move to new GGY bands
Remote casino businesses are among the operators that should revisit their fee models.
From 1 October 2026, the annual remote casino fee structure starts at:
| Annual GGY | New annual fee |
|---|---|
| Less than £250,000 | £7,000 |
| £250,000–£875,000 | £12,375 |
| £875,000–£3 million | £19,569 |
| £3 million–£10.5 million | £27,337 |
| £10.5 million–£36.75 million | £51,975 |
| £36.75 million–£130 million | £112,556 |
| £130 million–£455 million | £394,875 |
| £455 million–£1.6 billion | £1,181,625 |
Combined remote licences also become more expensive
A business combining remote casino, bingo and virtual-event betting activities must also account for additional fixed fees.
From 1 October, the additional annual charge is:
- £6,250 for a licence combining two of those activities; and
- £12,500 where all three are combined.
Application charges for combined activities also change.
This can matter where a new market entrant intends to operate several verticals through the same licensed entity.
Gambling software businesses face a new fee structure
B2B technology suppliers should also revisit their UK licensing budgets.
For a remote gambling software licence, the new annual fee bands from 1 October are:
| Annual gross value of sales | New annual fee |
|---|---|
| Less than £875,000 | £7,394 |
| £875,000–£3 million | £13,756 |
| £3 million–£10.5 million | £22,950 |
| £10.5 million–£36.75 million | £42,525 |
| £36.75 million–£130 million | £97,549 |
| £130 million or more | £191,880 |
The corresponding new application fees range from £7,212 in the lowest category to £99,446 in the highest.
This is relevant not only to traditional platform suppliers.
Businesses supplying gambling software into the British market should verify whether their activities require a software operating licence and whether their projected sales place them in a different fee category under the new structure.
First annual fees remain at 75% of the full annual fee
The structure for the first annual payment is retained.
The government confirmed that a first annual fee will continue to be charged at 75% of the ordinary annual fee.
For new applicants, market-entry budgets should therefore include at least two separate regulatory cash flows:
- the application fee; and
- the first annual fee after the licence is granted.
The UKGC states that the first annual fee is normally due 30 days after the operating licence is issued, subject to the specific licence rules.
This distinction is particularly important in transaction or launch budgets where advisers focus on the application cost but omit the near-term annual charge.
Personal licence fees increase by 25%
Personal licences are subject to a simpler flat increase.
From 1 October:
| Personal licence | Current fee | New fee |
|---|---|---|
| Personal Management Licence application | £370 | £463 |
| Personal Management Licence maintenance | £370 | £463 |
| Personal Functional Licence application | £185 | £231 |
| Personal Functional Licence maintenance | £145 | £181 |
These increases form part of the wider 25% change.
For acquisitions or restructurings, personal-licence costs can arise alongside the corporate process where incoming executives or management personnel need individual approvals.
Licence variations and supplementary licences also increase
Operating businesses should also account for increases in smaller administrative charges.
From 1 October, the fee for common licence variations rises from £40 to £50, while specified changes involving an individual rise from £160 to £200.
Supplementary or linked licences also rise by 25%:
- application fee: £206;
- first annual fee: £352;
- annual fee: £469.
Individually these charges may be modest compared with large operating-licence fees.
However, a complex group restructuring or multi-licence transaction can involve several applications at the same time.
Change-of-control transactions become more expensive
The October fee reform has a direct iGaming M&A consequence.
Where a UKGC licensee undergoes a change of corporate control, the Gambling Act 2005 framework requires the licensee to address continuation of the licence following the control change.
The Commission’s current guidance requires a change of control to be notified as a key event as soon as reasonably practicable and in any event within five working days of the licensee becoming aware of it.
Within five weeks of the change, the licence holder must either surrender the licence or apply for the licence to continue in force.
The 75% and 25% formulas remain
The basic fee methodology distinguishes broadly between controllers already known to the Commission and controllers requiring a fuller licensing assessment.
Where the incoming controller does not hold a UKGC operating licence, the fee is generally 75% of the standard application fee for the highest-value activity on the licence or licences held by the target.
Where the incoming controller already holds an operating licence, the fee is generally 25% of that standard application fee.
Specified FCA- or EEA-regulated financial institutions can also fall within the 25% treatment.
These percentages are not new from 1 October.
What changes economically is the underlying application-fee schedule and certain fixed fees.
Higher application fees can increase acquisition costs
Because the change-of-control fee is calculated by reference to the standard application fee for the target’s highest-value licensed activity, a higher or restructured application charge feeds directly into transaction costs.
For example, an acquisition involving an incoming controller not already licensed by the Commission can generate a materially higher regulatory fee than the same transaction involving an established UKGC-licensed controller.
That should be identified during transaction budgeting rather than after signing.
Group transactions also need entity-by-entity analysis
Where the same controller affects two or more licensees, the UKGC applies the percentage formula to the highest-value activity across the affected licensees, with an additional fixed fee for other affected entities.
From 1 October 2026, that additional fixed charge increases from £160 to £200 per relevant additional licensee.
For groups holding several operating licences across separate subsidiaries, the legal entity structure therefore matters to the fee calculation.
A £200 simplified fee remains available in limited cases
The revised structure also retains lower fixed treatment for certain comparatively limited control events.
From 1 October, a £200 fee applies in specified situations, including certain share-fluctuation cases, limited insertions of an entity into an existing structure, and qualifying changes involving family-owned small-scale operators.
The conditions are narrow.
For example, inserting a holding company can itself create a new controller even where the ultimate beneficial owner does not change. The reduced fee applies only where the requirements in the regulations and Commission guidance are met.
Businesses restructuring ahead of investment or acquisition should therefore analyse controller consequences before implementing the corporate change.
Licence fees matter when pricing an acquisition
In most regulated iGaming transactions, a UKGC fee will not determine the overall purchase price.
It can nevertheless affect deal execution.
The buyer should establish:
- which UKGC licences are held by the target;
- the highest-value licensed activity;
- whether the buyer is already a UKGC licensee;
- which entities in the target group undergo a control change;
- whether incoming individuals need separate PML approval;
- the change-of-control application fee;
- whether the acquisition changes the target’s fee category; and
- the annual regulatory cost after closing.
This should form part of regulatory due diligence before the transaction timetable and conditions precedent are finalised.
Licence costs are not the only regulatory transaction cost
Buyers should also budget for legal and regulatory work required to demonstrate controller suitability.
The UKGC process can involve source-of-funds evidence, ownership charts, acquisition documents, personal declarations and information concerning the post-acquisition business model.
The regulatory application fee is therefore only one component of total change-of-control cost.
Society lottery fees are frozen
Not every part of the industry receives the headline increase.
The government has decided to freeze society lottery operating-licence fees.
It said increasing those costs could reduce returns available for good causes.
External lottery managers, which commonly operate commercially, do not receive the same exemption and remain subject to fee increases.
Ancillary licence fees are also being held at existing levels as part of the approach taken to society lotteries.
On-course betting moves from days operated to GGY
The reform also changes how fees are calculated for the general betting limited operating licence used in relevant on-course bookmaking activity.
Historically, annual fee categories were determined by the number of days an operator traded.
From 1 October, the system moves to gross gambling yield.
The initial annual bands become:
| Annual GGY | Annual fee |
|---|---|
| Less than £100,000 | £252 |
| £100,000–£200,000 | £356 |
| £200,000–£300,000 | £459 |
| Above £300,000 | £563 plus £104 per complete additional £100,000 of GGY |
The new fees arrive in a market generating £17.5 billion GGY
The timing also coincides with the Commission’s latest market statistics.
On 17 September 2026, the UKGC reported that the customer-facing gambling industry in Great Britain generated £17.5 billion in total GGY during the financial year from April 2025 to March 2026, including reported lotteries.
Excluding lotteries, GGY was £13.2 billion, up 4.7% on the previous financial year.
These figures do not indicate the profitability of individual operators, nor do they establish how burdensome the fee increase is for a particular business.
They do, however, provide useful context for the size of the regulated market to which the new fee model applies.
What existing operators should do before 1 October
The practical preparation is relatively straightforward but should be completed at entity level.
Confirm the new licence category
Operators should check the Commission’s updated fee tables rather than assume that the previous category continues.
Particular attention should be paid to businesses near a new GGY threshold.
Reconcile the 2025–26 regulatory return
Because the Commission is using 2025–26 return data for category alignment, discrepancies should be identified promptly.
The financial and licensing teams should use the same underlying figures.
Update regulatory budgets
Budgets should cover:
- annual operating fees;
- first annual fees for pending applications;
- personal-licence charges;
- linked licences;
- licence variations;
- planned corporate restructurings; and
- potential M&A change-of-control applications.
Review planned corporate transactions
Deals expected to complete around October should use the fee schedule applicable to the relevant application and transaction timing.
Where several licensed entities are involved, the group calculation should be completed before agreeing transaction-cost allocations.
What new market entrants should model
The reform is also significant for businesses deciding whether to apply for a UK gambling licence.
A realistic market-entry budget should include more than the initial application fee.
Applicants should model:
- the correct operating-licence application fee;
- the first annual fee;
- relevant PML applications;
- software or linked licences where applicable;
- technical testing and certification;
- AML and safer-gambling implementation;
- ongoing compliance staff and systems; and
- future annual regulatory fees.
For groups considering both B2C and B2B UK activities, the software and operator licensing perimeter should also be analysed separately.
Legasset assists iGaming operators, suppliers, investors and acquirers with UK gaming licensing, market-entry structuring, regulatory due diligence, change-of-control analysis and transaction support.
For acquisitions, we can also help map licence-continuity requirements, controller approvals, regulatory conditions precedent and post-closing compliance obligations.
UK Gambling Commission Fees 2026 FAQ
When do the new UK Gambling Commission fees take effect?
The revised fee structure takes effect on 1 October 2026. The Gambling Commission has already updated individual licence pages to show the fees applying from that date.
Are all UKGC licence fees increasing by 25%?
No.
The government adopted a headline 25% increase, but operating-licence fees are being restructured and the uplift is not distributed evenly across licence categories.
Some smaller operators may pay less in cash terms under the new bands. Society lottery fees are frozen.
How will the UKGC determine an existing operator’s new fee category?
The Commission says it will use the operator’s submitted 2025–26 regulatory return data to determine alignment with the revised fee categories.
Are application fees also changing?
Yes.
Application fees change alongside the wider operating-licence structure. The precise amount depends on the licensed activity and relevant revenue band.
Applicants should use the Commission’s updated fee table for their specific licence.
What is the new first annual licence fee?
The first annual fee remains 75% of the full annual fee applicable to the licence category.
It is separate from the initial application fee.
Are Personal Management Licence fees increasing?
Yes.
From 1 October, the PML application and maintenance fees increase from £370 to £463.
Personal Functional Licence application and maintenance fees increase to £231 and £181 respectively.
Are UKGC change-of-control fees increasing?
Yes, but the legal structure requires some explanation.
The existing 75% and 25% calculation methodology remains. However, because the percentage is applied to the standard application fee for the target’s highest-value licensed activity, changes to application fees can increase the amount payable.
Specified fixed change-of-control charges also rise from £160 to £200.
When does the 75% change-of-control fee apply?
It generally applies where the incoming controller does not already hold a UKGC operating licence and does not qualify for specified treatment as a regulated financial institution.
The precise calculation depends on the licence structure and affected entities.
When can the 25% change-of-control fee apply?
The 25% rate generally applies where the incoming controller already holds a UKGC operating licence or qualifies as a specified FCA- or EEA-regulated financial institution.
The Commission’s detailed guidance should be checked for the specific controller and group structure.
Does buying a company with several UKGC-licensed subsidiaries create several full fees?
Not necessarily.
Where the same controller affects multiple licensees, the percentage calculation is generally based on the highest-value activity across the affected licences, with additional fixed fees for other affected licensees.
From 1 October, the relevant additional fixed fee is £200.
Are society lottery licence fees increasing?
No.
The government decided to freeze society lottery licence fees because of concerns about reducing funds available for good causes.
External lottery managers do not receive the same general exemption.
What changed for on-course bookmakers?
The general betting limited fee structure moves from categories based on the number of operating days to categories based on gross gambling yield.
The government estimates that 44% of operators in this category will receive a fee reduction under the new structure.
UK Gambling Licence Fees: Official Regulatory and Government Materials
The Commission’s announcement confirms the headline 25% funding increase, exceptions for society lotteries and general betting limited licences, the introduction of revised fee categories and use of 2025–26 regulatory return data for operator classification.
II. Department for Culture, Media and Sport — Government Response on Gambling Commission Fees From 1 October 2026
The government response sets out the rationale for the new fee model and provides detailed annual, application, personal-licence, variation and change-of-control fee schedules effective from 1 October 2026.
III. UK Gambling Commission — Change of Corporate Control
This guidance explains the five-working-day notification requirement, five-week continuation deadline and the 75% / 25% fee methodology applicable to incoming controllers, including the updated fixed charges from October 2026.
IV. UK Gambling Commission — Fees for a Change of Corporate Control Application
The Commission provides detailed change-of-control fee calculations and examples for known controllers, unknown controllers, group transactions, share fluctuations and other ownership changes.
V. UK Gambling Commission — Remote Casino Operating Licence Fees
The official licence page provides the application and annual fee bands applying to remote casino operators from 1 October 2026, including charges for combined remote activities.
VI. UK Gambling Commission — Remote Gambling Software Licence Fees
This page sets out the revised application and annual fee structure for remote gambling software businesses from 1 October 2026.
VII. UK Gambling Commission — Gambling Industry Statistics for 2025–26
The Commission’s September 2026 statistics provide current market context, including total Great Britain customer-facing gambling GGY of £17.5 billion for the 2025–26 financial year.
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