UK remote license fees may increase by 55% annually to provide funding to the Gambling Commission to regulate the fast growing industry and cope with the growing market for unlicensed licenses.
The Commission would need £ 2.5m to meet all challenges by 2023/2024
The Department for Digital, Culture, Media & Sport (DCMS) launched an open consultation in which an increase in Gambling Commission Fees to help the Commission continue to cover its costs and respond to new challenges.
The aim is to implement the proposed annual fee increases for remote licenses and any increases in application fees October 1, 2021. In the case of existing non-remote operators, however, the annual license fees would tend to be increased with immediate effect April 2022 taking into account the situation of the land-based sector caused by the Covid-19 pandemic.
The consultation document highlights three big challenges in regulation, which will gain momentum in the near future and which needs to be addressed. The challenges include increased technological developments (such as product and payment innovation), the arrival of a larger number of global operators and getting up Black market.
Regarding the first point that DCMS suggests increasing the number of technical professionals at the Commission and investing in tools to improve compliance and better manage the data available. The improvements will cost 1.2 million pounds when fully implemented in 2023/24.
The action in response to the second challenge would cost 1 million pounds and would include focusing on international regulatory agenda, Survey and understanding of complex company structures as well as increasing legal capacity.
Eventually, in response to the increasing number of unlicensed operators, DCMS suggested hiring more staff to determine the extent of the black market and raising more resources to address the problem, such as the ability to prosecute illegal operators. The investments required to meet this challenge are estimated at 300,000 pounds.
A recent report from the consultancy PWC claimed that around 200,000 weather consumed 1.4 billion pounds on the black market for a period of 12 months between 2018 and 2019. However, the Commission replied to the results of the report that it had exaggerated the real size of the illegal market.
Delayed increase in land sector fees
Under the proposal, the annual license renewal fees for remote and software licensees, excluding lotteries, would: a 55% hike within each fee band October 2021. Operator offer RNG (Random Number Generator) games, how online casinos and slots would pay off £ 2,500 or £ 5,000 More. The sector not removed would a 15% renewal fee Increase, set to go into effect in April 2022, with the delay aimed at helping businesses affected by the pandemic.