Gambling Commission unveils new fees structure
The majority of UK gambling operators could see their licence fees reduced under a new scheme proposed by the UK Gambling Commission and Department for Culture, Media and Sport (DCMS).
The Gambling Commission, which expects to implement the changes from April 2017, said that 1,900 of its 3,000 licensed operators would see their fees reduced, with a third staying the same and just 100 subject to an increase.
The regulator said that its operating costs have reduced in recent years, and that the new structure – which must be agreed by the Government – would reduce licence fee income by around 10%.
The new fee structure would introduce more bands based upon gross gambling yield (GGY), meaning smaller operators are likely to pay much less.
All remote gambling operators that currently bring in GGY of less than £5.5 million currently pay £13,529 in annual fees, but under new proposals there would now be bands ranging from ‘under £550k’, ‘£550k-£2m’ and ‘£2m-£5.5m’. A company that has GGY of less than £550,000, which previously paid £13,529 in fees, will now be liable for £3,408.
However, remote operators who generate GGY of more than £550 million will see their fees rise from £155,425 to at least £494,856.
It explained that the new structure “enables the Commission to recover the full costs of delivering its responsibilities, while ensuring fairness and value for money for the gambling industry”.
In a statement, the Gambling Commission said: “The Commission has reviewed its fees in light of a full year of operation since its remit was extended by the 2014 Act to include the licensing and regulation of overseas operators.
“Its review has confirmed that, while its overall costs have increased with the extension of its functions, its income from licence fees is, and will continue to be, in excess of its operational costs.
“Its recommendations to government for changes to licence fees have therefore been developed in this context.”
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