Is Gambling Taxable In The UK? (2025 Rules Explained)

In the UK, gambling winnings are tax-free, whether you win £50 on a football bet or £1 million in the lottery. 

Unlike many countries, no income tax or capital gains tax applies to prizes from casinos, sports betting, bingo, or online gambling. This rule has been in place since 2001, when the tax burden shifted from players to operators.

However, exceptions exist. Professional gamblers may face scrutiny, and winnings from overseas may have different rules. But for most, luck pays out in full—no deductions, no forms.

Understanding these rules ensures you keep every penny of your winnings while staying compliant!

Let’s break down how it works.

Tax Details on Gambling Winnings In the UK

As gambling winnings in the UK are not subject to income tax or capital gains tax, you don’t need to worry about shelling out a piece of your luck to the government!

Whether you’ve won £10 or £10 million on the National Lottery, you can keep every penny of your winnings without having to declare them to HMRC or pay any tax on them.

This tax-free status applies to all forms of legal gambling in the UK, including:

• Casino games (roulette, blackjack, poker)
• Sports betting
• Horse and greyhound racing
• Bingo
• Lottery and scratch cards
• Online gambling and slots

This favorable treatment dates back to 2001 when Gordon Brown, then Chancellor of the Exchequer, abolished betting duty on individual gamblers, shifting the tax burden entirely to gambling operators.

Know more about the UK Gambling duties here.

Do Bingo Winnings Get Taxed in The UK?

Bingo winnings, like all other forms of gambling winnings in the UK, are completely tax-free. 

Whether you win a few pounds at your local bingo hall or hit a massive online jackpot, you won’t need to declare these winnings or pay any tax on them. 

This applies to both traditional in-person bingo and online bingo platforms, which have experienced significant growth in popularity in recent years.

Do Professional Gamblers Pay Tax On Winnings?

Even professional gamblers – those who make their living primarily through gambling – do not pay tax on their winnings in the UK. 

This principle was established in the landmark 1925 case Graham v. Green, where the court ruled that betting could not be considered a trade for tax purposes, even if done systematically.

HMRC’s Business Income Manual (BIM22015) clearly states: “The fact that a taxpayer has a system by which they place their bets, or that they are sufficiently successful to earn a living by gambling, does not make their activities a trade.”

This means that, unlike in many other countries, even if gambling is your sole source of income and you approach it in an organized, systematic manner with consistent profits, your winnings remain tax-free. 

There are, however, some important distinctions to understand. If a professional gambler earns money from activities adjacent to gambling, such as: 

1. Appearance fees at poker tournaments
2. Sponsorship deals
3. Being paid to represent gambling companies

These income streams would be taxable, even though the gambling winnings themselves remain tax-free.

Who Pays Taxes In the UK Gambling Industry? 

While individual gamblers enjoy tax-free winnings, the gambling industry itself is heavily taxed. 

This arrangement effectively means the government still receives substantial revenue from gambling activities, just not directly from the winners.

Gambling operators face several forms of taxation:

• General Betting Duty: Bookmakers pay 15% tax on their gross profits from betting.
• Remote Gaming Duty: Online gambling operators pay 15% on their profits from UK customers.
• Bingo Duty: Operators pay 10% on bingo profits.
• Gaming Duty: Casinos pay a progressive tax on their table game profits, ranging from 15% to 50%.
• Lottery Duty: A 12% duty is applied to lottery ticket sales.

These taxes generate billions in revenue for the UK treasury. In the 2017-18 fiscal year alone, HMRC collected approximately £2.9 billion in gambling-related duties.

The gambling industry’s tax burden indirectly affects consumers through slightly reduced odds, higher house edges, or wagering requirements on bonuses. 

However, most gamblers consider this a fair trade-off for being able to keep 100% of their winnings.

5 Important Considerations Related To Gambling and Taxes in the UK

While gambling winnings themselves are tax-free, there are related financial considerations to keep in mind:

Income Generated from Winnings

If you invest your gambling winnings or place them in interest-bearing accounts, any returns or interest earned become subject to normal taxation rules. 

For example, if you win £100,000 and invest it, the original sum remains tax-free, but dividends, interest, or capital gains from those investments would be taxable, subject to the relevant allowances.

Alternatively, if you are planning to apply for a loan, a lender may have concerns, and gambling can affect your mortgage applications! 

Inheritance Tax Implications

Significant gambling winnings that form part of your estate when you die could potentially be subject to inheritance tax. 

The current inheritance tax threshold is £325,000, with a 40% tax applied to the portion of your estate that exceeds this amount (unless left to a spouse or charity). Large lottery winners should consider estate planning to mitigate potential inheritance tax liabilities.

Record-Keeping Recommendations

Although not required for tax purposes, keeping records of significant gambling wins and losses can be beneficial. 

If you suddenly deposit large sums into your bank account or make significant purchases, having documentation of the source of these funds can help avoid misunderstandings or unnecessary inquiries from financial institutions or authorities.

International Gambling Considerations

The tax-free status applies to UK residents gambling within the UK. If you gamble abroad, you may be subject to local tax laws in that jurisdiction. 

Many countries have treaties with the UK to prevent double taxation, but it’s worth checking the specific rules for any country where you plan to gamble.

Cryptocurrency Gambling

For blockchain or cryptocurrency gambling, while the gambling winnings themselves remain tax-free, any capital gains made on the cryptocurrency between receiving it as winnings and converting it to fiat currency could potentially be subject to capital gains tax.

Read Next:

• Is Gambling Safe In the UK?

Conclusion: Gambling Winnings Are Not Taxed In The UK

The UK boasts one of the world’s most gambler-friendly tax systems. Unlike many countries, all gambling winnings—from lottery jackpots to sports bets—are entirely tax-free, with no limits on either the amount or frequency. 

This stems from the government’s policy of taxing operators rather than players, which simplifies compliance while boosting the industry’s economic contribution.

While winnings themselves aren’t taxed, post-win financial decisions (investments, interest, or inheritance planning) may have tax implications. 

For most, however, the answer remains clear: your winnings stay yours, with no deductions. A rare win-win for both players and the UK economy!