UKGC Confirms It Is Not Funded by Taxpayers
FOI request reveals the gambling regulator is funded by industry licence fees, not central government grants.
A Freedom of Information request has clarified that the UK Gambling Commission's operations are funded by fees from the gambling industry, not by the UK taxpayer. The regulator's response highlights its financial independence from central government funding for its core regulatory duties.
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A Freedom of Information (FOI) request submitted on 18 November 2025 has clarified a common misconception about the UK Gambling Commission's (UKGC) finances, confirming its core operations are not funded by the UK taxpayer.
Instead, the regulator's work is financed directly by the industry it oversees through licence fees. This funding model is crucial for consumers to understand, as it outlines the financial relationship between the regulator and the operators it is tasked with holding to account.
The FOI Request and Response
The request asked the Commission to disclose the amount of central government funding it had received over the last three years and how those funds were distributed.
In its response, the UKGC stated that it does not receive central government funding for its primary regulatory activities. The Commission's work is funded by fees set by the Department for Digital, Culture, Media & Sport (DCMS), which are paid by the gambling businesses and individuals it licenses.
The UKGC clarified it has two main funding streams:
- Licence Fees: These are paid by all licensed gambling operators and individuals. This income covers all of the Commission's gambling regulation work, from enforcement and compliance to research and policy development, excluding the National Lottery.
- National Lottery Grant: The regulation of The National Lottery is funded separately by a grant from the National Lottery Distribution Fund.
Why Was Information 'Withheld'?
The official outcome of the request was listed as 'Information withheld'. While this may sound secretive, the Commission applied Section 21 of the FOIA, which provides an exemption for information that is already 'reasonably accessible elsewhere'.
This is not a refusal to provide information, but a procedural response directing the public to existing, published resources. The UKGC pointed to its annual reports and accounts, which contain detailed financial breakdowns, as the source for this information.
What This Means for Consumers
This disclosure confirms that the financial burden of regulating the UK's gambling industry falls on the operators themselves, not the general public. This 'polluter pays' principle is common for regulatory bodies and is designed to ensure that the sector creating the need for regulation also covers its cost.
For consumers, this model highlights the Commission's financial independence from central government budgets, though it remains an arm's-length government body accountable to Parliament. Understanding that the regulator is funded by the industry it polices is a key piece of context when evaluating the effectiveness and impartiality of UK gambling regulation.