Do I have to pay taxes on my gambling winnings?



If you are new to sports betting, you might be wondering how your winnings will be taxed. The answer to this question depends on the online gambling legislation of the country you live in. If you are a UK citizen, stay with us to learn everything there is to know about the taxation of your sports betting winnings so that you can enjoy this form of entertainment to the fullest.

UK Gambling Taxes

When playing games of chance you do not always win and that is the fact. The good news is that when you do happen to win, your winnings will be tax-free. Whether you earn them while placing bets online or in physical betting shops, you will not be required to share your prize with the Government. This was not the case at the dawn of the 21st century, though.

UK punters had to pay tax on betting until 2001. However, Betting Duty which stood at 6.75% was abolished by Chancellor of the Exchequer Gordon Brown in 2001 which made all winnings entirely tax free in the UK. That means that you do not have to declare them to the authorities at all.

This was a measure which made bookmakers stay in the UK instead of moving their operations to other countries thus taking jobs and revenue away from the UK. As a player, you can keep playing your favourite games of chance including sports betting without worries about paying taxes on your winnings as the situation will not change in the future. The logic is quite simple, as gambling results in more losses than winnings, and if players were made to pay taxes on the sums they won, it would probably result in them giving up on such activities.

Who Pays Taxes?

The taxation on gambling activities shifted from punters to bookmakers and online gaming operators since 2001. The sports betting operators are required to pay a 15% tax on their profits coming from organising games of chance online or offline. Initially, only bookmakers and gaming operators registered in the UK were liable to pay such a tax, but the policy was changed in 2014 when the profits coming from the UK players' bets were charged regardless of the location of the game provider. This happened due to the Gambling (Licensing and Advertising) Act 2014 and the introduction of ‘Remote Gaming Duty’.

Should Professional Gamblers Pay Tax?

Her Majesty's Revenue and Customs (HMRC) does not recognise professional gamblers as a separate category. They are treated the same way as regular or occasional players as they place their bets according to the same rules. To put it simply, the UK Government is not interested in the way punters place their bets or whether they are successful in it or not. So, even if you make a living from playing sports betting or maybe casino games, you will not be required or obliged to pay any kind of tax on your payouts, which is more or less the case with the rest of the world.

Best 10 New Bookmakers

£50 SIGN UP HERE

New players only. 100% up to £50 sports bonus. Rollover: 17x deposit & bonus at minimum odds 2.00 within 365 days. If bonus is cancelled, bonus funds will be lost. Full terms apply. 18+, begambleaware.org

£100 SIGN UP HERE

New UK customers only; 6x wagering of deposit and bonus with 90 day expiry; Only sports bets contribute to wagering; Min 2 selections at 1.4 min odds per selection; Max £100 per bet; See full terms; 18+.

£10 SIGN UP HERE

18+, New Players only, 1st deposit, Min Deposit: £10, max £10 free bet valid for 14 days, bets must be placed at odds of 1/1 or greater. Full Terms Apply

£15 SIGN UP HERE

18+, New Players only, 1st deposit, Min Deposit: £10, max £10 free bet valid for 14 days, bets must be placed at odds of 1/1 or greater. Full Terms Apply

£50 SIGN UP HERE

New customers only. Min stake £10. Min odds even/2.0. Free bet up to value of initial stake (win part only) credited if selected event/result occurs. Max free bet £50. Free bet valid for 7 days. Full terms apply. 18+. Begambleaware.org

£31 SIGN UP HERE

Deposit and bet on any Sportsbook Markets of your choice at odds of Evens (2.00) or greater. Get 50% Back of your first days losses as a Free Bet up to £25 + a Guaranteed £5 Free Bet Either Way plus 10 Free Spins! 18+

£10 SIGN UP HERE

T&C’s Apply. New Customers only. Visa/Mastercard deposits. Min Deposit £10. Max one £10 free bet. Odds of 1.8 or greater. Free Bet given once qualifying bet has been settles. Valid 7 Days from Issue. 18+

£100 SIGN UP HERE

Opt in. Min. Odds Evs, Max. £10 stake, Max. additional profit £100. Skrill and Neteller deposits are not eligible

£200 SIGN UP HERE

New customers only. Min deposit £20. Wager 10 times at odds of 1.65 (3/5)or bigger. Expires after 5 days (no Skrill, Neteller & Paysafe). T&Cs apply

£10 SIGN UP HERE

18+, New Players only, 1st Deposit, Min Deposit £10, max, valid for 14 days, bets must be placed at odds of 1/1 or greater and be settled within 14 days of placement. System bets no eligible