If you’ve ever won money or a jackpot on an online casino in the UK, you might have wondered if your winnings were subject to tax. To answer that, we’ve put together an FAQ of what you have to do, or don’t have to do, in the event of a win.

Are gambling winnings taxable in the UK?

The answer is no. Your gambling winnings aren’t taxable in the UK. Regardless of whether you’ve won 100 pounds or several million. This applies to all types of gambling, from online casinos, betting sites, bingo, slots, lotteries and horse racing.
Do I have to pay taxes on casino winnings? The answer is no
However, you will have to declare your casino winnings to the tax office. The tax year following your win, your capital will be declared as personal wealth. It goes without saying that in the event of a substantial win, it’s best not to burn your fortune all at once. To avoid being left penniless, we recommend you think about blocking your money. Any competent tax expert, or a friendly bank advisor, can provide useful advice in this area.

Do I pay taxes if I win money on the online casinos listed in this guide?

No. As mentioned before, any winnings at an online casino in the UK are not taxed. If you have chosen to register with one of the online casinos listed on OCT, and you win money, there are no taxes to pay on it.
 
The same is true for slot machines as well as table games. So, you can enjoy all the casino games without having to worry about taxes.

How does it work outside the UK?

If you don’t live in the UK, your winnings might be subject to a tax, so it’s essential to check it out if you aren’t a UK resident. However, if you are a UK citizen gambling abroad, you generally won’t need to worry about paying taxes. Most countries have treaties with the UK so that you won’t be subject to their tax requirements, but it depends on where the money is being transferred. If you have an official address in the UK, you might as well receive your money in England so as not to pay tax. If you live in Canada or Europe, in most cases it’s like in the UK – no tax payable on the winnings.

Why aren’t casino winnings taxed?

It’s simply easier for all parties involved to leave winnings untaxed. The main reason is that if people are paying taxes on their winnings, just like businesses do, it would be possible to claim back losses on tax returns. As you can imagine, this would end up being a real nightmare.
Gambling games winnings are free tax in the UK

Who does pay tax?

The casinos, lotteries and bingo halls are the ones paying the tax. This is how they contribute to the UK’s economy. Before you start thinking about how tough it must be for businesses, or how great it might be for the player, bear in mind that they do pass these costs on to you in some way. For example, some online gambling sites have high wagering requirements or lower odds. So, in reality, the players have paid their tax for them.

Professional players are tax-free

Shouldn’t professional gamblers pay taxes? Well no, in the UK all gamblers are exempt from tax. When we say professional gambler, we mean someone who uses gambling as their primary source of income.
Gamblers who make a living at gambling do not pay tax in the UK
The fact that a player has a system by which he places bets, or that he’s sufficiently successful in earning a living by gambling does not make their activities a trade. Gambling winnings, therefore, remain 100% tax-free, regardless of whether it’s the main source of income or a hobby.

Conclusion

The UK is a kind of tax haven for any gambler earning large sums of money. Whatever the game, and whatever the amount won, the taxes on winnings is always 0%. Even professional players don’t pay taxes, which is, admittedly, quite unique. While any profession is subject to tax, as long as the income reaches a minimum threshold, a pro gamer does not pay tax. On the other hand, players succeeding to live solely from gambling are relatively rare, and it involves significant risks as the house always has the odds on their side. According to the OCT experts, making a living from casino income is unrealistic. If you want more information on gambling taxes in the UK, we recommend you visit the Money & Tax section of the Gov.UK website.