UK Gambling Commission costs surge 49% to £60.3M, driven by £14.2M in legal fees from National Lottery disputes and regulatory expansion.
The UK Gambling Commission’s operating costs have soared to £60.3 million, driven primarily by legal expenses related to National Lottery disputes and the expansion of regulatory requirements.
According to the UK Gambling Commission’s 2024-25 annual report published on GOV.
In the UK, legal fees reached £14.2 million, with £13.4 million spent defending claims from the unsuccessful National Lottery bidder The New Lottery Company.
Staff numbers increased by 11.5% to 416 employees, while enforcement actions generated £4.2 million in fines across 24 operators.
The regulator also removed over 95,000 illegal gambling websites. However, let’s face it, we already have a hint that removing these sites is likely a waste of time and resources, as we reported in December that offshore gambling sites are growing in regulated markets.
Legal Costs Drive Expenditure Increase
The Commission’s total expenditure jumped from £40.4 million in 2023-24 to £60.3 million in 2024-25, representing a 49% year-on-year increase. The primary driver was legal costs associated with ongoing litigation from The New Lottery Company, which has challenged the fourth National Lottery licence competition outcome.
Richard Desmond’s lottery operation claims it was misled during the National Lottery tender process, with the resulting High Court legal battle consuming substantial regulatory resources and beginning in October 2025, according to The Guardian.
UK Gambling Commission Expenditure Breakdown (£ millions)
| Category | 2023–24 (£m) | 2024–25 (£m) |
|---|---|---|
| Total Operating Costs | 40.4 | 60.3 |
| Legal Costs | 0.35 | 14.2 |
| Employee Costs | 24.0 | 27.8 |
| Gambling Regulation | 25.5 | 31.9 |
Staffing and Operational Expansion
Employee costs rose to £27.8 million from £24 million, reflecting an increase in headcount from 373 to 416.
The Commission completed over 9,700 compliance activities during the year, more than double the 4,200 assessments completed the previous year.
This expansion supports the implementation of reforms under the Gambling Act review.
Mixed Compliance Results Across Operators
Compliance assessments revealed that 33.8% of licensees received good ratings for consumer protection, while 39.4% received satisfactory ratings. However, nearly 20% showed major deficiencies. Performance improved regarding fair and transparent requirements, with over 73% earning good ratings.
What This Means for UK Players
British players may face indirect impacts from these rising regulatory costs. Operators fund Commission activities through annual license fees calculated based on gross gambling yield. While the Commission issued £4.2 million in fines, increased operational expenses could potentially lead to higher fees for operators, costs that may eventually filter down to customers through adjusted odds, reduced promotions, or stricter verification processes.
The intensified compliance regime resulted in enforcement actions against 24 operators and the removal of 95,705 illegal gambling URLs. These actions aim to protect players from unlicensed sites, though some legitimate players may experience more stringent identity checks and affordability assessments.
Casinoplusbonus Opinion
The 49% cost increase presents a complex situation for UK gambling. From a consumer protection standpoint, expanded oversight and aggressive enforcement against illegal operators benefit players by ensuring safer gambling environments. The Commission’s dedication to removing thousands of unlicensed sites protects British players from unregulated operators. However, the legal expenses related to National Lottery disputes raise concerns about resource allocation. Nearly £13.4 million spent defending litigation represents funds that could have supported direct player protection initiatives.
UK players ultimately bear these costs through operator fees: The challenge lies in balancing necessary regulatory expansion with fiscal responsibility, ensuring enhanced protections don’t come with disproportionate price tags that affect the broader gambling ecosystem.
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