Do you pay tax on gambling winnings in the UK?

The short answer

You don’t pay tax on gambling winnings in the UK, whether they come from a casino, a bookmaker, a betting exchange or a spread bet. HMRC’s Business Income Manual puts it plainly: “betting and gambling, as such, do not constitute trading”. That cuts both ways: winnings aren’t taxed, and losses can’t be offset against other income.

What operators pay instead

Operators also pay a statutory levy of 1.1% of the previous year’s gross gambling yield for online operators. It started in April 2025, replaced the old voluntary contributions, and funds research (20%), prevention (30%) and treatment through the NHS and the Scottish and Welsh governments (50%).

Does the tax affect your odds?

Not directly: unlike Germany’s betting tax, British duties are charged on the operator’s profits, not on your stake, so nothing is deducted from your bet. Operators decide how much of the cost to pass on through their prices. Our bookmaker margin calculator shows what a bookmaker keeps on any market.

Professional gamblers

HMRC’s position covers professional gamblers too. Its manual says that having a system, or being successful enough to earn a living by gambling, doesn’t make betting a trade, citing a 1925 case about a man who lived on his bets on horses. What can be taxable is an organised activity to make profits out of the gambling public, like a bookmaker’s, or money earned around gambling, such as appearance fees for television. If gambling is your living, speak to an accountant.

Before you count on winnings

Over time, casinos and bookmakers keep more than they pay out. Set a deposit limit before you start, and if gambling stops being fun, call the free National Gambling Helpline on 0808 8020 133, at any time. Our guide to gambling help in the UK covers GAMSTOP and other support.