18+ only. Gambling should be entertainment, not a way to make money. If it stops being fun, stop. BeGambleAware.org
On this page
- What do HMRC and the Gambling Commission say?
- How are bookmakers taxed instead?
- What changes for online betting duty in April 2027?
- When can tax still apply?
- Do winnings affect benefits or need proof of source?
- Are free bet winnings taxed?
- Current sports offers
- Frequently asked questions
- Staying in control
- Sources checked
Last checked 22 October 2026 by Tom Perkins. Not tax advice. Facts are taken from GOV.UK, HMRC and the Gambling Commission, linked below.
No. In the UK, customers do not pay tax on gambling winnings, whatever the amount. The Gambling Commission confirms that winnings are tax-free for customers, and that tax is charged on gambling operators’ profits instead. HMRC has also said that the proceeds of gambling are not taxable and are not declared on a Self Assessment tax return.
What do HMRC and the Gambling Commission say?
- Gambling Commission: “winnings from gambling for customers are tax-free, regardless of the amount won. Instead, tax is levied on the profits (Gross Gambling Yield) of gambling operators.” (FOI response, linked below.)
- HMRC: in reply to a customer question on its community forum, HMRC said gambling proceeds are not taxable and are not declared on a Self Assessment return.
- HMRC Business Income Manual (BIM22015): betting and gambling “as such” do not constitute trading, so a punter is not taxed on profits and gets no relief for losses. An organised activity making profits from the gambling public, such as running a book, is normally trading.
How are bookmakers taxed instead?
Operators pay duties on their profits (stakes minus winnings paid out). GOV.UK lists these rates:
| Duty | Rate (GOV.UK) |
|---|---|
| General Betting Duty: fixed-odds and totalisator bets | 15% |
| General Betting Duty: betting exchange commission charged to UK people | 15% |
| General Betting Duty: financial spread bets / other spread bets | 3% / 10% |
| Pool Betting Duty | 15% |
| Remote Gaming Duty (online casino-style games) | 40% since 1 April 2026 (21% from April 2019 to March 2026) |
These are paid by the operator, not deducted from your winnings. Duty rates can change at a Budget, so check GOV.UK for the latest.
What changes for online betting duty in April 2027?
From 1 April 2027, bookmakers will pay a new remote betting rate of General Betting Duty: 25% of their profits on bets placed online or by phone, up from 15%. Remote bets on UK horse racing stay at 15%, and so do bets made in betting shops (including on self-service terminals), pool bets and spread bets. The change is in section 87 of the Finance Act 2026 and the GOV.UK policy paper Changes to Gambling Duties (26 November 2025).
It is a tax on operators’ profits, not on you: winnings stay tax-free for customers.
When can tax still apply?
- Interest on winnings: savings interest is taxable income above your Personal Savings Allowance.
- Assets bought with winnings: gains on things like shares or property may be subject to Capital Gains Tax when sold.
- Related income: income from sponsorship, appearances or content about gambling is not gambling winnings and may be taxable.
- Operating as a bookmaker: taking bets as a business is a different matter.
- Outside the UK: other countries have their own rules.
If your situation is unusual, ask HMRC or a qualified adviser.
Do winnings affect benefits or need proof of source?
Large deposits can prompt questions from your bank about where the money came from. Keep your bookmaker statements. Licensed operators also carry out their own checks before withdrawals; see our how to claim free bets guide for verification basics. For benefits, ask the benefit provider: we have not verified the rules for each benefit.
Are free bet winnings taxed?
Winnings from a free bet are gambling winnings like any other. The terms that affect their value are the operator’s, such as stake not returned, minimum odds and expiry, not tax.
Current sports offers
The offers below are for new customers aged 18+ at UKGC-licensed bookmakers. Each one has its own terms, minimum odds and expiry, so read them before you opt in. Our free bets page explains how tokens work.
New customers. Min £5 deposit. First bet only: min £5 single/each-way at odds 1/1+ within 30 days of registration. 3 x £10 Free Bets (singles/each-way, excl. virtuals), expire after 30 days. Free Bet stakes not returned. Neteller and Skrill deposits excluded. No wagering on Free Bet winnings stated.
Promo code:
AB5G30Three separate £10 Free Bets, usable on singles and each-way.Full T&Cs
New Sky Betting and Gaming customers 18+ only (previous Sky Bet, Vegas, Casino, Bingo or Poker account holders excluded). Register, add card details and make a minimum £5 deposit. Your first bet must be a single or each-way bet of at least £5 on any Sky Bet market at odds of 1/1 or greater; accumulated smaller stakes do not count and only your first bet counts. Staking requirement must be met within 30 days of registration. Rewards: three £10 Free Bet tokens, usable on any single or each-way market excluding virtuals, not with any other offer. Free Bets expire 30 days after crediting, are non-withdrawable and stakes are not included in returns. One claim per customer. Customers depositing with Neteller or Skrill do not qualify. Offer may differ if you arrive via another link. Sky Bet General Promotion Terms apply.
New customers. Opt in at sign-up. Deposit £10+ and place a £10+ bet at odds 1/1+ within 7 days (excl. virtuals, esports, non-UK/IE racing). 4 x £10 Free Bets: 2 for football accas (4+ legs), 2 for sports multiples (2+ legs), valid 7 days. Free Bet stake not returned.
Rewards credited on settlement of one £10 qualifying bet, win or lose.
Full T&Cs
New BetMGM customers 18+. Select the Sports Welcome Offer at sign-up. Deposit at least £10 and place at least £10 on a qualifying bet within 7 days of registration: min odds Evens 1/1 (2.0); each-way bets need £10 each way (£20 total); Bet Builder total odds must be 1/1+. Excludes virtual sports, esports and non-UK/IE horse racing. Free Bets, Profit Boosts, Odds Boosts, void, cashed-out, partially cashed-out and system bets do not qualify. Not with other offers. On settlement you get 4 x £10 Free Bets: 2 x £10 on football accas (4+ selections) and 2 x £10 on sports multiples (2+ selections), selected via the betslip checkbox. Free Bets expire after 7 days; stake not included in winnings. Once per household/computer/IP. Operated by LeoVegas Gaming plc (UKGC 39198). General and promotional T&Cs apply.
New customers. Opt in at sign-up. Deposit £10+ and place a £10+ bet at odds 1/1+ within 7 days (excl. virtuals, esports, non-UK/IE racing). 4 x £10 Free Bets: 2 for football accas (4+ legs), 2 for sports multiples (2+ legs), valid 7 days. Free Bet stake not returned.
Same LeoVegas offer structure as BetMGM, with UK/IE racing allowed for the qualifier.
Full T&Cs
New BetUK.com customers 18+. Opt in by selecting the Sports Welcome Offer at sign-up. Deposit at least £10 and place at least £10 on a qualifying bet within 7 days of registration: min odds Evens 1/1 (2.0); each-way needs £10 each way; Bet Builder total odds 1/1+. Excludes virtual sports, esports and non-UK/IE horse racing. Free Bets, Profit/Odds Boosts, void, cashed-out, partially cashed-out and system bets do not qualify. Once only; not with other offers. On settlement: 2 x £10 Free Bets on football accas (4+ selections) and 2 x £10 on sports multiples (2+ selections). Unused Free Bets expire after 7 days; stake not included in winnings. Operated by LeoVegas Gaming plc (UKGC 39198). General Promotional and General T&Cs apply.
Frequently asked questions
Do I have to declare betting winnings to HMRC? HMRC has said gambling proceeds are not taxable and are not declared on a Self Assessment return.
Is there tax on a big jackpot or lottery win? The Gambling Commission says customer winnings are tax-free regardless of the amount. Interest earned afterwards can be taxable.
Are professional gamblers taxed? HMRC’s manual says betting as such is not trading, so a punter is not taxed on betting profits. Other income, such as sponsorship, may be.
Do bookmakers take tax off my winnings? No. Operators pay duty on their own profits.
Is exchange betting tax-free? For UK customers, yes for winnings. The exchange pays General Betting Duty on its commission. Our Smarkets review and Matchbook review explain how exchange commission works.
Will the 2027 betting duty rise mean tax on my winnings? No. The 25% remote betting rate from 1 April 2027 is charged on bookmakers’ profits. Winnings stay tax-free for customers.
We post new guides and checked offers on Telegram (18+ only):
Staying in control
Set a deposit limit before your first deposit, decide your budget in advance and never chase losses. Calculators show what a bet could return; they do not make any outcome more likely. You can self-exclude from all online gambling sites licensed in Great Britain for free with GamStop, and many banks let you block gambling payments. The National Gambling Helpline (0808 8020 133) is free, confidential and open 24 hours a day. See our responsible gambling page.
Sources checked
- Gambling Commission – Winnings from gambling for customers
- HMRC Community Forums – Declaration and taxation of gambling winnings
- HMRC Business Income Manual BIM22015
- GOV.UK – General Betting Duty, Pool Betting Duty and Remote Gaming Duty
- GOV.UK – Changes to Gambling Duties (policy paper, 26 November 2025)
- Finance Act 2026, section 87 (General Betting Duty on remote bets)
Affiliate disclosure: onlinebetfree.co.uk may receive a commission if you open an account through links on this page. This does not affect the offers we list or how we describe them, and it never changes the terms an operator gives you.
18+ only. Please gamble responsibly. For free, confidential support visit BeGambleAware.org or call the National Gambling Helpline on 0808 8020 133.