UK: increase of license fees starting October 2021!
Following an industry consultation held by the UK Government’s Department for Digital, Culture, Media and Sport (DCMS) from 29 January to 26 March 2021, the department published its response on funding the UK Gambling Commission (UKGC). The outcome raised remote licence renewal fees by 55% and remote application fees by as much as 60% late that year; land-based, retail casino and betting venues were set for a 15% rise the following year.
In its consultation response, DCMS said higher fees were needed to help the regulator meet three significant challenges: rapid technological change, illegal operators, and oversight of an industry made up largely of multinational businesses.
The assessment also said the UKGC needed additional investment to strengthen staff training and the regulator’s overall expertise. The government said it intended to implement the proposals in due course to support that work.
The higher charges were intended to cover growing costs associated with:
- Keeping pace with technological change
- Countering illegal-market operators
- Improving oversight of operators based overseas
- Training staff at the UKGC regulatory board
Secondary legislation was to put the fee changes into effect, with the earliest and most substantial revisions affecting annual charges for remote operating licences. The changes also covered licence applications and variations and ended the annual fee discount.
Remote operators face 55% annual fee and 60% application fee increases!
The UKGC document set out a 55% rise in annual licence fees for remote operators, affecting online gambling businesses then registered with the commission. New applications for remote licences were also subject to a 60% increase.
The removal of annual fee discounts had been confirmed. The proposal to end the discount for operators holding both land-based and online licences was also approved, with the change due to take effect at the beginning of October 2021.
Non-remote operating licence fees set to rise by 15%
Retail and other land-based operators were also due to pay 15% more in licence fees. Because the pandemic had reduced revenue in the land-based sector, this increase was deferred until April 2022. The fee for Single Machine permits was adjusted as well, rising from £25 to £40.
Gambling Commission welcomes the fee increase
The commission had addressed consumer safety concerns and sought to make gambling safer overall. It put guidance on responsible gambling in place as part of its response to an industry changing quickly.
In its response, the Gambling Commission said it welcomed the consultation outcome and that the additional funding would help it continue regulating effectively.
With 12+ years of experience in the iGaming industry, Evan specializes in reviewing online casinos, analyzing slot games, and evaluating player safety. Their expertise covers casino licensing, RTP, volatility, bonus conditions, and withdrawal policies. Through hands-on testing and independent research, Evan delivers transparent, fact-based reviews to help players better understand gambling platforms, their features, and potential risks.
