UKGC Funding From Licence Fees Reached £26.1M in 2022-23
FOI request clarifies regulator's income is derived from industry fees, not government grants, showing a 30% increase in the latest reported year.
A Freedom of Information request has clarified that the UK Gambling Commission is funded entirely by operator licence fees, not government money. Data from annual reports shows this income grew to £26.1 million in 2022-23, a significant increase intended to bolster regulatory activities.
Article Content
A Freedom of Information (FOI) request submitted on 13 March 2024 has shed light on the funding of the UK Gambling Commission (UKGC), confirming that its entire operational budget is derived from the fees paid by the operators it regulates.
While the request specifically asked for the amount of funding received from the government, the UKGC's response clarified a common misconception. The regulator is not funded by the taxpayer. Instead, its income comes directly from the gambling industry through annual licence fees.
In its response, the Commission withheld the information under Section 21 of the FOIA, as the data is already publicly available within its annual reports. By directing the requester to these documents, the UKGC confirmed its funding model and provided a transparent path to the figures.
Funding by the Numbers
Analysis of the UKGC's Annual Reports, as signposted in the FOI response, reveals a steady increase in income from licence fees over the past three reported years, with a significant jump in the most recent period.
- 2020/21: £19.91 million
- 2021/22: £20.20 million
- 2022/23: £26.10 million
The substantial 30% increase in income for the 2022/23 financial year is attributed to a revised fee structure that came into effect in October 2021, with 2022/23 being the first full year of its implementation. This change was designed to better equip the Commission to handle the complexities of an evolving gambling market.
Why This Matters for Consumers
Understanding the UKGC's funding is crucial for consumers. It confirms that the financial burden of regulating the UK's multi-billion-pound gambling industry falls on the operators themselves, not on the general public through taxation.
A well-funded regulator is better positioned to carry out its key duties, which directly impact player protection. These duties include:
- Compliance and Enforcement: Investigating operators for breaches of their licence conditions, such as failures in social responsibility or anti-money laundering controls.
- Research and Data: Gathering evidence on gambling trends and harms to inform regulatory policy.
- Licensing: Ensuring that only suitable and compliant operators are permitted to offer services to UK consumers.
The increase in funding to £26.1 million suggests a greater capacity for the UKGC to undertake these activities. For consumers, this should translate into more robust oversight of the industry and a stronger focus on making gambling safer.