UK announces new fee structure

The license fee structure will be implemented by the UK Gambling Commission.

The new measure will enter into force on April 2017.

UK.- The UK Gambling Commission (UKGC) is preparing a new fee structure for the industry, which will be released on April 6, 2017. The fee would benefit over 1,900 companies by reducing the tax payments, but would increase the fees for 75 gaming operators. Around 1000 operators would perceive a slight difference or no change at all.

The UKGC published this week its intentions to add the new fee structure, which would be backed by the Department for Culture, Media and Sport (DCMS). Both national bodies have been discussing the further amendments for the Gambling (Licensing & Advertising) Act 2014. The new license law will “reduce the overall fee burden across the industry by over 10 percent,” according to the UKGC.

Furthermore, UK online gambling operators will have to pay 15 percent based on all online revenue under the point-of-consumption tax. The complete fee structure will be based on operators’ gross gambling yield. That way, the UKGC will ensure its costs will be “recovered on a proportionate basis from different types and sizes of operator.”

From 75 to 100 UK operators will note an increment of at least 140 percent in their payments, whilst the 20 largest operators will also contribute with an annual payment of £164,000, or approximately 0.05 percent to 0.1 percent of gross gambling yield. Meanwhile, the rest of the operators will see their fees reduced from 2 percent to 75 percent.

Companies that will be granted their first license in the UK will enjoy a 25 percent of discount during their first year of activity. The fee structure includes a new game host license for B2B suppliers who operate their own games online. Operators will apply for B2B and B2C license and the new ‘game host’ license “would attract lower fees than current remote casino and bingo licenses.”