DCMS conducted a consultation from 29 January to 26 March this year regarding proposed changes to Gambling Commission fees. The objective of these changes is to enhance the regulator’s ability to address regulatory challenges effectively. In the consultation document, DCMS identified three major challenges faced by the Commission: increased technological advancements, regulation of large global gambling operators, and the presence of unlicensed black market operators.
The consultation proposed an uplift in licensing fees, including a 55% increase in annual remote operating license fees starting from 1 October 2021. New license applications would also incur a 60% cost increase under the proposal. Additionally, steps to simplify the fees system were suggested, such as removing the annual fee discount for combined land-based and online licenses.
Although non-remote operating licenses were due to increase by 15%, the implementation of this increase will be postponed until 1 April 2022 due to the negative impact of the Covid-19 pandemic on the land-based industry.
The government intends to proceed with the implementation of all proposed changes outlined in the original consultation document. However, there will be two minor amendments to fee regulations. These amendments include a provision for certain circumstances where no variation fee will be charged in order to align with UK GDPR, and an increase in the Single Machine Permit fee from £25 to £40.
The changes to license fees will be implemented through secondary legislation, with the first changes taking effect on 1 October this year. These changes include the increase in annual fees for remote operating licenses, increases in all license application and variation fees, and the removal of annual fee discounts for combined and multiple licenses. Subsequently, the annual fees for non-remote operating licenses will be increased from 1 April 2022.
The Gambling Commission has published its response to the findings, expressing their approval of the DCMS consultation response and its ability to bring essential changes to their fee income, enabling them to continue regulating effectively.
