Tax on gambling winnings in the UK

If you win money gambling in the UK, do you have to pay tax on it? For an ordinary player, the answer from HMRC’s own guidance and from the law on capital gains is that the winnings themselves are not taxed. But what you do with the money afterwards can have tax consequences. This guide explains the position in plain terms.

This is general information, not tax advice. If your situation is unusual, for example you are paid to appear on TV, you run a gambling business, or you live outside the UK, check with HMRC or a qualified tax adviser.

Why winnings are not treated as income

HMRC’s Business Income Manual sets out its view in BIM22015 (opens in a new tab): the basic position is that betting and gambling, as such, are not trading. It relies on a 1925 court case, Graham v Green, which has, in HMRC’s words, “stood the test of time”. The result is that the person placing the bet is not taxable on the profits, and does not get relief for their losses.

The same page says this applies to newer forms of games of chance too. It also says the bookmaker, or anyone running an organised activity to make profits from the gambling public, is normally trading, and is taxed on that business.

What about professional gamblers?

HMRC addresses this directly in BIM22017 (opens in a new tab). Having a system for placing bets, or being successful enough to earn a living from gambling, does not by itself make the activity a trade. HMRC’s example is “studying form”: expertise and a systematic approach are not enough.

There are exceptions. HMRC gives the example of “professional gamblers” who are paid appearance money to take part in television programmes. They are providing a service for a reward, which can be a trade, and whether their winnings form part of it depends on the facts.

Capital Gains Tax

Section 51 of the Taxation of Chargeable Gains Act 1992 (opens in a new tab) states that winnings from betting (including pool betting), lotteries and games with prizes are not chargeable gains. So a jackpot, a casino win or a lottery prize does not create a Capital Gains Tax bill. The same section says there is no allowable loss when you lose, either.

The tax sources in this guide are HMRC guidance and UK legislation. The gambling regulation described elsewhere on this site, such as licensing and GAMSTOP, applies to Great Britain only.

Tax can apply to interest on your winnings

The exemption covers the winnings themselves. Money you earn from them afterwards is a different matter:

• Savings interest. Interest earned on winnings you save may be taxable, depending on how much interest you earn, your other income and your allowances (opens in a new tab). GOV.UK sets out a Personal Savings Allowance of up to £1,000 of interest for basic rate taxpayers, £500 for higher rate taxpayers and nothing for additional rate taxpayers. Some people can also use the starting rate for savings. Interest in an ISA is not usually taxed. Banks report interest to HMRC after each tax year.

Giving winnings away

Gifts of money can count for Inheritance Tax. According to GOV.UK’s guidance on gifts (opens in a new tab):

• no tax is due on gifts if you live for 7 years after giving them (unless the gift is part of a trust)
• gifts between spouses or civil partners who live permanently in the UK, and gifts to charities, are exempt
• you can give away £3,000 a year in total under the annual exemption, and carry any unused amount forward for one tax year
• you can give as many gifts of up to £250 per person as you like each tax year, provided you have not used another allowance on that person
• there are separate allowances for wedding and civil partnership gifts and for regular gifts from your normal income.

If you die within 7 years of a gift and Inheritance Tax is due, how much depends on when you gave it. GOV.UK says gifts given in the 3 years before death are taxed at 40%, with a sliding scale called taper relief for gifts given 3 to 7 years before. Money you still hold when you die is part of your estate. For large sums, it is worth getting professional advice before you give money away.

Other things worth knowing

• Proof of where money came from. Casinos can ask for documents about your identity and the source of your funds, including when you withdraw. Keeping your account history and win confirmations helps. Our withdrawals guide explains when casinos can ask for documents.
• Unlicensed sites. A site offering gambling to people in Great Britain without a Gambling Commission licence is operating illegally, and the Commission cannot get your money back if it refuses to pay. Check the licence before you play.

The tax gambling businesses pay

Players are not taxed on winnings, but gambling businesses pay gambling duties to HMRC on their profits. These are separate from the statutory gambling levy, which funds research, prevention and treatment. HMRC’s published rates for 2026 to 2027 include:

HMRC’s policy paper on the Budget 2025 changes sets out three other points:

• A new 25% rate of General Betting Duty for remote betting is to apply from 1 April 2027. Remote bets on UK horseracing, and bets placed on self-service betting terminals in licensed premises, stay at 15%.
• Bingo Duty was abolished from 1 April 2026.
• The government says it put the biggest increase on remote gaming because it is generally considered to have lower operating costs and to be more harmful than other forms of gambling.

The duty is charged on the business, not on you. But HMRC’s own impact assessment says individuals could be affected if operators pass the increase on through worse betting odds or lower return to player. Before you play, each game must give you its RTP, house edge or probability of winning, so you can compare games. See how online casino games are regulated.

Keeping it in proportion

Gambling winnings are not income to plan around. The games are built so that, on average, the operator keeps part of what is staked. Our guide to how casino games work explains RTP and house edge. If gambling has started to feel like a way to make money or pay off debts, the National Gambling Helpline is free on 0808 8020 133 in England and Scotland. In Wales, call the NHS All-Wales Gambling Helpline on 0808 2819 265.