UK: Licence Fee Increases Begin in 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 scheduled for a 15% increase the following year.
In its consultation response, DCMS said higher fees were needed to help the regulator address 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 improve staff training and strengthen the regulator’s overall expertise. The government said it intended to implement the proposals in due course to support this work.
The higher charges were intended to cover rising costs associated with:
- Keeping pace with technological change
- Tackling illegal-market operators
- Strengthening oversight of operators based overseas
- Training staff at the UKGC regulatory board
Secondary legislation was to bring the fee changes into effect, with the earliest and largest revisions affecting annual charges for remote operating licences. The changes also applied to licence applications and variations, and ended the annual fee discount.
Remote Operators Face 55% Annual Fee and 60% Application Fee Increases!
The UKGC document outlined a 55% increase in annual licence fees for remote operators, affecting online gambling businesses then registered with the commission. New applications for remote licences also faced a 60% increase.
The removal of annual fee discounts had been confirmed. The proposal to end discounts 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 reduced revenue in the land-based sector, the increase was postponed until April 2022. The fee for Single Machine permits was also changed, rising from £25 to £40.
Gambling Commission Welcomes the Fee Increase
The commission had responded to consumer safety concerns and sought to make gambling safer overall. As part of its response to a rapidly changing industry, it introduced guidance on responsible gambling.
In its response, the Gambling Commission said it welcomed the consultation outcome and that the additional funding would help it continue to regulate effectively.
Evan Carrington brings more than 12 years of experience in the iGaming industry, with a focus on reviewing online casinos, assessing slot games and examining player safety. Their work covers casino licensing, RTP, volatility, bonus terms and withdrawal policies. Drawing on practical testing and independent research, Evan provides clear, evidence-based reviews to help players understand gambling platforms, their features and possible risks.
