Taxing Gambling Winnings in the UK
Tax Implications of Online Gambling and Sports Betting for Players
The tax on gambling in the UK is paid on the profits made by the operator. The tax is the difference between the stakes and the winnings. It is not a tax that is charged on the winnings made by the gambler. The bookmaker will be taxed through General Betting Duty. The casino will be taxed through Remote Gaming Duty. These taxes apply to the operator who offers remote gambling services for the UK citizens irrespective of where the operator is situated. According to iGamingBusiness, the Office for Budget Responsibility estimates £4 billion in receipts in 2025-26 and £5 billion in 2026-27.
Gambling Tax Rates for the 2026 Tax Year
The most significant change for 2026 tax year is Remote Gaming Duty which is increasing from 21% to 40% on profits earned through online gambling sites. Betting duty remains unchanged at 15%, and the remote bet rates of 25% will follow from April 2027.
| Duty | Charged on | Rate |
|---|---|---|
| Remote Gaming Duty | Online casino and other remote gaming profit | 40% from April 2026, up from 21% |
| General Betting Duty | Bets in licensed premises, on self-service terminals and remote horse racing | 15% |
| General Betting Duty, remote | Remote bets on other sports betting markets | 25% from April 2027, up from 15% |
| Spread betting | Financial and non-financial spread bets | 3% and 10% |
Three more changes affect planning:
- Bingo Duty: the 10% rate was abolished from April 2026.
- Machine Games Duty: same as last year in the Budget, but according to SBC News, the Chancellor was considering increasing it in September 2026.
- Pass-through: the government expects operators to pass on up to 90% of the increases to players through higher prices or lower payouts, as CasinoExpert reported.
Reporting Small Gambling Winnings
HMRC asks operators to register at least 31 days before they start, or 14 days if they are based in the UK, the EU or another listed jurisdiction. An operator outside those jurisdictions generally appoints an approved UK representative. HMRC may require security equal to six months of estimated duty.
A standard accounting period is three calendar months, so there are four a year. Returns go through HMRC’s Gambling Tax Service. HMRC’s guidance on gov.uk sets the deadline for return and payment:
“within 30 days after the end of each accounting period”
A nil return is still required when no duty is due. Late payment can bring a penalty, interest or both, and payments must be made in pounds sterling.
Expected Gambling Tax Law Changes in 2026-27
At a 40% rate on casino profit, margin becomes the pressure point. Law firm CMS expects the higher rates to make some products less attractive, such as fewer free bets, and some operators to drop product lines.
Planning therefore starts with product mix, bonus budgets and payout structure, reviewed with advisers each quarter.
BSW provides the custom platform and back office reports used by the finance team to match up bets and payouts. They don’t offer any tax or licensing advice, and the duty of the operator remains the same.
FAQ
Do players pay tax on gambling winnings in the UK?
The duty is charged on the operator’s profit, not on player winnings.
How much tax does an online casino pay in the UK?
Remote Gaming Duty is 40% of gaming profit from April 2026.
How much tax does a bookmaker pay on sports betting?
General Betting Duty is 15% today, and remote bets on non-racing markets move to 25% from April 2027.
Do overseas operators owe UK gambling tax?
Yes, if they offer remote gambling to people who usually live in the UK.
When is gambling duty due?
Within 30 days after each three-month accounting period ends.
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