Key Takeaways
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The Government has confirmed that society lottery licence fees will be frozen from 1 October 2026, while most gambling operators will see a headline 25% increase.
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The original DCMS consultation explored options including a 30% uplift, but the final outcome takes a different approach for society lotteries.
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The decision recognises the particular role society lotteries play in raising funds for good causes.
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The collective response from The Lotteries Council, External Lottery Managers (ELMs) and charities holding society lottery licences helped ensure sector concerns were clearly heard.
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For charities running or considering prize-led fundraising, the result provides welcome stability at a time of wider financial and regulatory pressure.
What the 2026 DCMS GC Consultation Result means for society lotteries
The 2026 DCMS GC Consultation Result is an important moment for charities, society lotteries and the wider prize-led fundraising sector. Following the Department for Culture, Media and Sport (DCMS) consultation on proposed changes to Gambling Commission fees, the Government has confirmed that annual licence fees for society lotteries will be frozen. This sits alongside a wider headline 25% increase for most gambling operators, due to take effect from 1 October 2026, subject to secondary legislation.
For society lotteries, this is a welcome and practical outcome. In the consultation, the DCMS had set out three possible options for increasing operating licence fees: a headline 30% increase, a headline 20% increase, or a headline 20% increase plus a further 10% ringfenced for work on illegal markets and revenue protection. The Government has now confirmed it will not proceed with any of those options as proposed. Instead, it will introduce a 25% headline increase for most licence types, while freezing society lottery fees.
Why this matters for charity fundraising
Society lotteries occupy a distinct place in the regulated gambling landscape. They are not simply commercial products; they are fundraising mechanisms that help charities generate regular, often unrestricted income for good causes. For many organisations, prize-led fundraising income supports long-term planning, resilience and supporter engagement.
That distinction was central to the sector’s response. The Lotteries Council welcomed the outcome, noting that while most gambling operators will see a 25% increase in licence fees, the Government has recognised the unique role of society lotteries by keeping their licence fees unchanged. At a time when charities continue to manage rising costs, supporter expectations and regulatory responsibilities, avoiding an additional fee increase is significant. Any extra cost linked to operating a society lottery risks reducing the funds available for charitable work. The Government response acknowledges that concern, stating that it is aware cost increases would likely reduce the amounts available for good causes, and that this was considered in the decision to freeze fees for society lotteries.
A collective voice made a difference
One of the clearest lessons from the 2026 DCMS GC Consultation Result is the value of a strong, informed and collective sector voice. The Lotteries Council, External Lottery Managers such as Woods Valldata, and charities holding society lottery licences all had an important role to play in explaining the potential impact of increased fees.
The Lotteries Council has said it was proud to contribute to the consultation response on behalf of members, ensuring the views and concerns of society lotteries were represented throughout the process. It also highlighted that the DCMS listened to the collective voice of its members.
For Woods Valldata, this underlines why specialist knowledge and ongoing engagement matter in prize-led fundraising. Society lotteries must be run compliantly, responsibly and with careful attention to both regulation and supporter experience. When policy proposals arise, it is vital that decision-makers understand how they could affect the charities and good causes at the heart of the model.
What changes from 1 October 2026?
The broader Gambling Commission fee changes are expected to take effect from 1 October 2026. The Gambling Commission has confirmed that licence fees will increase by 25% overall, but that fees for society lotteries will be held at current levels. It has also noted that operators will be contacted with further details about how the changes affect them.
For charities with a society lottery licence, the key point is simple: society lottery annual licence fees are not increasing as part of this outcome. However, charities should still read the Government response and relevant annexes carefully, and continue to monitor Gambling Commission communications to understand any operational implications.
Why proportionate regulation matters
Good regulation protects players, supports public trust and ensures lotteries are operated responsibly. It also needs to be proportionate to the level of risk and the purpose of the activity. Society lotteries raise funds for charitable and good causes, so changes to regulatory costs can have a direct impact on the money available to support those causes.
The 2026 DCMS GC Consultation Result is therefore more than an administrative update. It is a reminder that consultation responses matter, sector expertise matters, and collective advocacy can help shape better outcomes. For charities using prize-led fundraising, the freeze in society lottery licence fees provides reassurance and reinforces the importance of staying engaged with regulatory developments.
Frequently Asked Questions
What is the 2026 DCMS GC Consultation Result?
It is the Government’s response to the DCMS consultation on proposed changes to Gambling Commission fees from 1 October 2026. For society lotteries, the key outcome is that licence fees will be frozen.
Are society lottery licence fees increasing in 2026?
No. The Government has confirmed that society lottery licence fees will remain at current levels, while most gambling operators will see a headline 25% increase.
Why were society lottery fees frozen?
The Government recognised the unique role of society lotteries and considered the risk that higher fees could reduce the funds available for good causes.
Who responded to the consultation on behalf of society lotteries?
The Lotteries Council, External Lottery Managers including Woods Valldata, and charities holding society lottery licences are amongst the organisations who contributed to the consultation process and helped represent the sector’s concerns.
What should charities do next?
Charities should review the Government response, monitor Gambling Commission updates, and continue to seek specialist advice to ensure their society lottery remains compliant and effective.
Want to find out more about Woods Valldata as an External Lottery Manager, and how we can support your charity lottery? Get in touch!
