UK: Licence Fee Increases Starting October 2021!
After the UK Government’s Department for Digital, Culture, Media and Sport (DCMS) held an industry consultation from 29 January to 26 March 2021, it published its response on funding the UK Gambling Commission (UKGC). The outcome increased remote licence renewal fees by 55% and remote application fees by as much as 60% later that year. Land-based, retail casino and betting venues were due to see a 15% increase the following year.
In its consultation response, DCMS said increased fees were needed to help the regulator address three major challenges: rapid technological change, illegal operators and oversight of an industry largely made up of multinational businesses.
The assessment also said the UKGC needed more investment to improve staff training and strengthen the regulator’s overall expertise. The government said it planned to implement the proposals in due course to support this work.
The increased fees were intended to cover rising costs related to:
- Keeping up with technological change
- Tackling illegal-market operators
- Strengthening oversight of operators based overseas
- Training staff on the UKGC regulatory board
Secondary legislation was to bring the fee changes into effect, with the earliest and largest adjustments applying to annual charges for remote operating licences. The changes also covered licence applications and variations and removed the annual fee discount.
Remote Operators Face 55% Annual Fee and 60% Application Fee Increases!
The UKGC document set out a 55% increase in annual licence fees for remote operators, affecting online gambling businesses then registered with the commission. Applications for new remote licences were also subject to a 60% increase.
The end of annual fee discounts was confirmed. The proposal to remove the discount for operators holding both land-based and online licences was also approved, with the change scheduled to take effect at the start of October 2021.
Non-Remote Operating Licence Fees Set to Rise by 15%
Retail and other land-based operators were also scheduled to pay 15% more in licence fees. Because the pandemic had cut revenue in the land-based sector, the increase was postponed until April 2022. The fee for Single Machine permits also changed, rising from £25 to £40.
Gambling Commission Welcomes Fee Increase
The commission had addressed consumer safety concerns and sought to make gambling safer overall. As part of its response to a fast-changing industry, it introduced guidance on responsible gambling.
In its response, the Gambling Commission said it welcomed the consultation outcome and that the extra funding would help it continue to regulate effectively.
Evan Carrington brings more than 12 years of experience in the iGaming industry, specializing in online casino reviews, slot game analysis, and player safety assessments. Their expertise includes casino licensing, RTP, volatility, bonus terms, and withdrawal policies. Combining hands-on reviews with independent research, Evan provides clear, evidence-based coverage to help players understand gambling platforms, their features, and possible risks.
