Report
Annual report and accounts 2024 to 2025
The Gambling Commission's 2024 to 2025 annual report and accounts. For the period 1 April 2024 to 31 March 2025.
Contents
- Foreword
- Performance report
- Accountability report
- Financial statements
- Notes on the accounts
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- Statement of accounting policies
- Statement of operating costs by operating segment
- Expenditure
- Income cash receipts
- Property, plant and equipment
- Right of use assets
- Intangible assets
- Financial instruments
- Cash and cash equivalents
- Trade and other receivables
- Trade and other payables
- Provisions and charges
- Retirement benefit obligations
- Lease liabilities
- Contingent liabilities disclosed under IAS 37
- Related party transactions
- Amounts of income to the Consolidated Fund
- Events after the reporting period
- Appendices
j. Licence fee receipts and fee income recognition
Income is recognised in accordance with IFRS 15 – Revenue from contracts with customers, as adapted by the HMT Financial Reporting Manual (FReM).
The Gambling Commission collects statutory fees under the Gambling Act 2005. These fees are considered to arise from contracts with customers, as they represent consideration for services provided by the Commission.
The Commission does not provide credit arrangements for the payment of licence fees by the industry. All fees must be paid on or before the date prescribed, to prevent a breach of the licence and the licence being revoked.
The performance obligations and revenue recognition policies are as follows.
Operator Licence Application Fees
Performance obligations
Assessment and processing of the application, which may result in the grant of a licence. Applies to new operator licence applications (first annual fees), change applications, variation applications for both personal and operator licences and single machine permits. The Commission will not process a licence application until the full fee has been received and matched to the application invoice. Failure to pay the fee will ultimately result in the rejection of the application in line with the Gambling Act 2005 and the Commission’s Income Collection Policy. The Gambling Act 2005 Section 100(1) stipulates that the holder of a licence shall pay a first annual fee to the Commission within such period after the issue of the licence as may be prescribed and pay an annual fee before each anniversary of the issue of the licence.
Recognition
Income is recognised in full at the point the licence is issued, as the performance obligation is satisfied at that time.
Operator Licence Annual Fees
Performance obligations
Ongoing regulatory oversight and compliance monitoring throughout the licence period, in line with the licensing objectives in the 2005 Act.
The Commission issues the renewal annual fee invoice approximately 6 weeks before the annual fee is due. This invoice is made available through the Commission’s eServices platform, where operators can also make payment by credit or debit card.
The annual fee is due on the anniversary of the date the operating licence was first issued. Payment must be made in full before the anniversary date to avoid revocation of the licence. If the fee is not paid on time, the Commission is required to revoke the licence, and the operator would need to reapply to continue operating.
Recognition
Annual fee Income is recognised on a straight-line basis over the duration of the licence, as the service is provided evenly over time.
The first annual fee invoice is issued on the date the licence is granted and is due for payment within 30 days. Annual Fee Invoices are automatically raised 6 weeks prior to the anniversary of the issue of the operating licence. In accordance with the Gambling Act 2005 the annual fee must be paid before the anniversary of the issue of the licence. If the annual fee is unpaid, the licence will be revoked as per the Gambling Act Section 119 (3) and the operator will be unable to continue offering gambling services to UK customers.
Operator Licence significant judgements and estimates
Annual fees are paid to maintain an operating licence for a 12-month period where the licence holder operates their gambling business in the UK regulated environment. The maintenance of the licence is therefore deemed a performance obligation satisfied over a period of time, as the customer simultaneously receives and consumes the benefits provided.
Operator licence revenue recognition over time
Operator Licence annual fee revenue is recognised on a straight-line basis over 12 months from the anniversary of the issue of the licence. This method is considered to provide a faithful depiction of the transfer of services, as the Commission’s regulatory activities are delivered evenly throughout the licence period. Income not yet recognised is recorded as deferred income in the Statement of Financial Position.
Personal Licence Application Fees
There are 2 main types of personal licences issued by the Commission:
- Personal Management Licence (PML) - this is required for individuals who occupy key management roles in a licensed gambling business. Prescribed licence application fee of £370 is payable.
- Personal Functional Licence (PFL) – this is required for individuals who perform operational functions in a casino. Prescribed licence application fee of £185 is payable.
Performance obligations
Assessment and processing of the application, which may result in the grant of a personal licence. The fee must be paid before submitting the application. The fee is non-refundable, even if the application is unsuccessful or withdrawn. Failure to pay the fee will ultimately result in the rejection of the application in line with the Gambling Act 2005 and the Commission’s Income Collection Policy.
The Commission does not act as an agent for another party in this process. It is the principal in delivering the licensing service directly to the applicant.
There is no obligation to arrange for another party to provide the service; the Commission itself is the sole authority responsible for issuing licences and enforcing compliance.
Recognition
60 percent of the fee is recognised at the point the licence is issued, reflecting the cost and effort of processing the application.
The remaining 40 percent is recognised on a straight-line basis over the 5-year licence term, reflecting the ongoing service.
A New personal licence application must be accompanied by the prescribed fee as per the Gambling Act 2005. The Commission will not process an application until the full fee has been received and matched to the application invoice. Failure to pay the fee will ultimately result in the rejection of the application in line with the Gambling Act 2005 and the Commission’s Income Collection Policy.
Personal Licence Renewal Fees
There are 2 main types of personal licences issued by the Commission:
- Ongoing PML’s have a prescribed licence fee of £370, which is payable every 5 years
- Ongoing PFL’s have a prescribed licence fee of £185, which is payable every 5 years.
Performance obligations
The Commission must notify licence holders when their 5-year maintenance deadline is approaching.
Under the Gambling (Personal Licence Fees) Regulations 2006, licence holders are required to pay a maintenance fee every 5 years to retain their licence.
The Commission must provide access to the “Manage Your Personal Licence” portal, where licence holders can:
- submit required documentation (for example, ID, DBS checks, overseas police reports if applicable)
- pay the prescribed fee (£370 for PML, £185 for PFL)
- download or update their licence.
Recognition
35 percent is recognised at the point of renewal, with the remaining 65 percent recognised over the 5-year term.
Where a personal licence is surrendered or revoked, any remaining deferred income associated with that licence will be recognised in full at the end of the financial year in which the surrender or revocation occurs.
Personal Licence Significant Judgements and Estimates
The allocation of income between upfront and deferred recognition is based on management’s assessment of the relative effort and cost associated with each performance obligation. Personal Licence deferred recognition percentages are reviewed periodically and reflect the Commission’s experience and operational data.
Personal Licence Revenue Recognition Over Time
Personal Licence fee revenue (application fee 40 percent and renewal 65 percent) is recognised on a straight-line basis over the 5-year term from the anniversary of the issue of the licence. This method is considered to provide a faithful depiction of the transfer of services, as the Commission’s regulatory activities are delivered evenly throughout the licence period. Income not yet recognised is recorded as deferred income in the Statement of Financial Position.
Last updated: 15 October 2025
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