Tax on Gambling Winnings UK – How It Affects Players

Q: Do you get taxed on gambling winnings UK?

As a player, you don't need to pay a tax on gambling winnings . You can refer to our gambling tax UK overview for more details on why you don't need to pay tax and other important information on the subject.

Q: Do you have to declare gambling winnings to the HMRC?

Since players are not required to pay gambling winnings tax , you are not required to declare what you have won to the HMRC. Of course, the government still claims a tax on gambling activities. We have more details on that in our section about who pays gambling taxes in the UK .

Q: Do professional players pay gambling tax UK?

Just like with amateur players, professionals are not required to pay tax on gambling winnings . There is an exception to that rule when it comes to tournaments and if there are any different local tax laws that apply. For more details, check out our gambling winnings tax for pro players section.

Q: What is the gambling tax UK law?

All gambling taxes are covered by the operators . At the time of writing this article, there is a 15% tax for land-based gambling establishments and for online sites, it is 21%. For more details and a brief history of how gambling and its taxation evolved during the years, check out our overview on the history of UK gambling and taxes .

Q: Do I have to pay a gambling tax for playing online?

No, both offline and online gambling activities are not subject to gambling winnings tax that is covered by the player. The tax on gambling is covered by the operator and for online sites is quite steep at 21%. As we mentioned in our online gambling taxation topic, make sure to pick a safe and reasonable operator before playing.

Author: Luke Holmes 9 Mar 2021

A very common question asked by gamblers of all types is if a tax on gambling winnings UK is required to be paid. In this article, we will do our best to explore everything surrounding the subject on what the gambling winnings tax is and how it affects you as a player.

Tax on Gambling Winnings UK Overview
UK Gambling History
Online Gambling Taxation
FAQ

What you can find in the coming sections is the result of the research made by our expert team regarding any gambling tax in the UK that is applicable. We will be going over what the current legal situation in the UK is in regards to gambling and taxation, as well as giving you details on its effect on the players.

Gambling Tax UK Overview

The main concern of most UK players is whether they win or lose, but that is not always the case. A very common question that most punters have is if there is any tax on gambling winnings in the UK. In order to alleviate any worries that our readers have regarding the subject, we have created this article.

There are many countries in the world that apply taxes on gambling winnings on their players. As an example, in the USA, France or Macau, the gambling tax can reach anywhere between 1% and 25%! Fortunately for UK players, there is no gambling winnings tax that they need to pay.

You are free to go and enjoy your favourite gambling activities without worrying if you need to pay tax. Of course, the government did think of this and a common misunderstanding is that there is no taxation at all with gambling. On the contrary, the gambling winnings tax is actually a part of the odds by default. Here is how you can make sense of the current taxation laws:

There is no tax on gambling winnings UK players have to cover.
HMRC doesn’t draw a distinction between pro and amateur players.
If you gamble outside of Great Britain, you may need to comply to foreign tax laws.
Current gambling tax UK laws apply to both offline and online betting.

We would like to make a note on one of the points shown above. When it comes to the gambling winnings tax law, the HMRC (Her Majesty’s Revenue and Customs) does not really separate amateur and pro punters in the application of taxes. There are some differences, though, which we will cover in the coming sections.

Who Pays Tax on Gambling?

Continuing on from the last paragraph, you might be asking yourself who is paying the gambling taxes in the UK if the players are not the ones who do it? Well, as we mentioned, the gambling businesses pay them. That’s why the costs for the tax on gambling winnings in the UK are already a part of the service.

Gambling Tax UK Details

The operators pay the gambling winnings tax instead of the players and that way, they support the UK economy. Of course, different businesses fall under different gambling activity sub-divisions. This means that there are multiple taxes on gambling winnings UK brackets, called duties. Here is a short list of them:

General Betting Duty
Bingo Duty
Machine Games Duty
Lottery Duty
Gaming Duty
Remote Betting Duty

Some players might think that the high requirements placed on the operators in the UK in conjunction with paying tax on gambling might be a bit harsh. Well it’s not really like that as there are other ways the operators make up for the additional costs. As an example, land-based casinos offer entertainment, drinks and other services to its patrons. On the other hand, online gambling sites have higher wagering requirements or lower odds.

Gambling Winnings Tax for Professional Players

Let’s talk about what happens if you are a professional player and if there is a tax on gambling winnings the UK requires you to pay. Well, as with amateur players, pros don’t need to pay any gambling winnings tax. The HMRC does not distinguish between both types of gamblers when it comes to the tax laws.

There is an exception to that, which is not always applicable. Pro players frequently tend to enter tournaments either in the UK or around the world. There may be cases, in which the professional gambler will need to comply to the local taxation laws that might require them to pay a percentage.

History of Gambling in the UK and Taxation

In order to keep it short, we would like to just mention some of the major turning points or events, which shaped the country’s gambling market to what it is now. All forms of betting and wagers were made illegal by the Victorian Government in 1845 with the first Gaming Act. You can find more details in our UK gambling laws article.

Fast-forwarding a hundred and some years, the basis of the legal gambling market was set with the 1960 Betting and Gaming Act. It made betting shops legal and thousands of them started appearing all over the country. The most notable after that is the 2005 Gambling Act, which made all forms of gambling legal and a main regulatory body, called the UK Gambling Commission, was created.

The History of UK Gambling and its Taxes

With the legalisation of betting with the 1960 Betting and Gaming Act, a gambling winnings tax was levied on stakes or winnings. UK punters were charged 9% back then, but fortunately, this was abolished in 2001 by Gordon Brown. Instead, it was replaced with a 15% tax on the bookmakers and their gross profits at the point of supply.

As you can probably guess, most operators moved their online activities offshore, where they paid the local tax on gambling instead. For example, Gibraltar was very popular, as the taxation rate was capped at just 1%. This was changed with the 2005 Gambling Act.

It required all offshore operators to get a licence from the UKGC and pay the country’s taxes. Of course, with that change, came an amendment to the tax on gambling winnings in the UK. Operators still had to pay 15% on their gross profits, but at the point of consumption. There is a new update for online operators as well, which we will cover in the next section.

The Tax on Online Gambling

As we mentioned earlier, the UK government made a major move in 2005, requiring all online bookies such as the top PayPal live casinos in the UK to obtain a licence and pay the 15% tax on gambling winnings. Well, on the 1st October 2019 there was an amendment, which increased the 15% tax to 21% for online gambling sites only. This means that UK players can now notice a change in the terms of each online operator as the wagering requirements get steeper and odds are lowered.

Of course, with the new gambling tax UK laws does not mean that there aren’t any great places to play and win it big. We have a whole list of the best UK roulette sites, where you can enjoy gambling without too much hassle and with great offers.

Tax on Gambling Winnings UK Final Thoughts

Well, our tax on gambling winnings UK overview is coming to an end, so we would like to sum it all up shortly. There is no gambling tax UK players have to pay no matter if they are an amateur or a pro. The gambling winnings tax is covered by the operators and already present in the costs of the services they provide.

There is a small exception when it comes to pro players if they attend tournaments. In some cases, they may be required to cover a tax on gambling, which is applied locally depending on where the event is staged. In all other cases, make sure to play at operators that don’t require an arm and a leg in terms of wagering requirements and don’t forget to have fun.

Gambling Tax UK FAQ

In this section, we would like to cover the most frequently asked questions from players regarding the tax on gambling winnings in the UK has. We hope that you will find answers to your queries as well and solidify your knowledge on the subject.

🤔 Do you get taxed on gambling winnings UK?

As a player, you don't need to pay a tax on gambling winnings. You can refer to our gambling tax UK overview for more details on why you don't need to pay tax and other important information on the subject.

❔ Do you have to declare gambling winnings to the HMRC?

Since players are not required to pay gambling winnings tax, you are not required to declare what you have won to the HMRC. Of course, the government still claims a tax on gambling activities. We have more details on that in our section about who pays gambling taxes in the UK.

💰 Do professional players pay gambling tax UK?

Just like with amateur players, professionals are not required to pay tax on gambling winnings. There is an exception to that rule when it comes to tournaments and if there are any different local tax laws that apply. For more details, check out our gambling winnings tax for pro players section.

⚖️ What is the gambling tax UK law?

All gambling taxes are covered by the operators. At the time of writing this article, there is a 15% tax for land-based gambling establishments and for online sites, it is 21%. For more details and a brief history of how gambling and its taxation evolved during the years, check out our overview on the history of UK gambling and taxes.

✒️ Do I have to pay a gambling tax for playing online?

No, both offline and online gambling activities are not subject to gambling winnings tax that is covered by the player. The tax on gambling is covered by the operator and for online sites is quite steep at 21%. As we mentioned in our online gambling taxation topic, make sure to pick a safe and reasonable operator before playing.

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