Last year the UK Gambling Commission announced changes in the licensing fees for gambling operators, which initially looked like an increase in fees to almost everyone and sparked at the very least some concern.
To address these concerns the UKGC sat down with the Department for Culture, Media and Sport (DCMS) for a 3-month consultation, which concluded in early September. Afterwards the UKGC posted more information and we have now a better breakdown of the planned changes, which are supposed to take effect in April.
Whilst some operators will indeed see an increase in their licensing fees, they will actually be the largest operators in the UK. In total 75 gambling operators will see a hike in their fees, which are directly linked to their Gross Gambling Yield (GGC). They will actually see their fees go up by as much as 140%.
A further 1,900 gambling operators will actually see a decrease in fees, and another 1,000 operators will be affected by rather small changes in their fees.
Fears that new licensees might be scared away with increased fees have also been allayed, because first-time license takers will actually get a 25% discount.
One of the main reasons for the changes in the licensing fees are the coverage of the cost for operating the UKGC. The current licensing fees have been in place since 2007 and overtime they have proven to be insufficient for the UKGC to run effectively.
Additionally, the 15% point-of-consumption tax has been introduced in order to prevent a steep hike in the licensing fees. Some of the potential fees were thus absorbed and resulted in a reduction of the fee burden across the industry by 10%.
Finally, B2B suppliers will henceforth only require one license, which will combine the B2B and B2C licenses they had to obtain thus far. The combined license will be more cost effective as well.
Overall the changes do have their merit and the biggest hit will certainly be absorbed by the gambling operators who can afford to do so.