Lucky Mobile Slots
Narrow down your search for top slots with our Advanced Slot Search
Blog

Do I Need To Pay Tax on Casino Winnings in the UK?

Do you have to declare your gambling winnings to HMRC? No. You do not need to pay tax on casino winnings in the UK, whether you live in England, Scotland, Wales, or Northern Ireland.

Updated Nov 21st, 2023
Do I Need To Pay Tax On Casino Winnings UK
Do I Need To Pay Tax On Casino Winnings UK
18+

This was not always the case. It’s only been since 2001 that the then chancellor of the exchequer of the UK, Gordon Brown, scrapped the current tax levy on sports and casino gambling winnings.

So why the change? And are there ever situations in which you might be taxed? What if you win a lottery or, in the case of online casinos, a huge jackpot? Surely, if you get 2 million in the bank, the UK government will ask for a little of it back? What if I consider myself a professional gambler?

The simple answer is that you do not need to declare or pay Taxes on gambling winnings, full stop. The long answer is that you should always be careful to be able to prove your winnings and be careful how you spend your winnings afterwards – as that can be taxable.

Here’s everything you need to know about taxes on casino winnings in the UK.

Why are casinos winning tax-free in the UK?

If you are a UK casino player and win big, you are exempt from paying any of the following taxes:

  1. Capital Gains Tax
  2. Income Tax
  3. National Insurance

And while you may be worried when researching that the UK Government has a whole page dedicated to gambling tax submissions, this page isn’t for you. The UK government is making plenty of money on gambling taxes; it’s just taxing the online casinos instead of the punter.

The UK doesn’t tax betting because it wouldn’t make any revenue

As explained by Forbes far more effectively than us, the logic is still more or less sound: gambling, by definition, is not a money-making scheme. The RTP of the casino game machines is made so that the house always wins over the long term.

In other words, the winnings of some people are generally offset by the losses of many others.

Microgaming can afford to pay out a £5 million Mega Moolah slots jackpot because it has accumulated twice that in real money bets on the machine – remember, only a small percentage of your bet goes towards the jackpot.

The remaining money is spread over the casino and the game studios.

Casushi Casino Logo
A fun UK slots site, Casushi casino focuses on providing its players with popular slots, jackpots, promotions, and a loyalty program to keep you entertained. Plus, they have a generous welcome bonus with free spins waiting for you.

Try CasushiCasushi Review

18+ Please Gamble Responsibly. Wagering Requirements - T&Cs Apply

Who pays gambling taxes in the UK?

If you want to offer gambling services in the UK, and it doesn’t matter if it’s UK slots, poker, or even a lottery, you have to get a Gambling License from the Gambling Commission.

Casinos, poker and betting sites have to pay taxes on their profits. HMRC gets 15% of all revenue from UK players who visit licensed casinos, bingo or gambling sites.

In 2019 alone, the UK Gambling industry was estimated to be worth £14.3 billion, with 30% of that generated by the national lottery and scratch cards – a UK government-run gambling operation.

We are trying to say that the UK Government is taking a very healthy slice of tax from Gambling, and you should almost certainly not worry about keeping your slice to yourself.

Will I be taxed if I am a professional UK Gambler?

No. You will not be taxed on casino winning in the UK, whether you bet £10 a week or try to make a living from gambling sites.

Our advice is very narrowly looking at traditional gambling games such as video slots, blackjack, sports betting, bingo, lotteries, or poker. We cannot offer advice if you do spread betting, financial betting, or trade in the stock market.

Generally speaking, it is almost impossible to be a ‘professional’ gambler at casinos – because you will lose more over the long term than you win.

The trick is in knowing when to walk away and enjoy your tax-free UK casino winnings rather than play it back into the gambling sites.

What if I live in Northern Ireland, Wales, or Scotland?

You can get your casino winnings tax-free if you live in the United Kingdom. Currently, that includes the nations of England, Wales, Scotland, and Northern Ireland.

These countries have no separate rules or regulations regarding gambling taxation despite each having its own governing bodies.

Gambling laws are currently held and made by the UK Parliament and, as such, apply to all.

Why you should keep a record of any big wins

There is no better place to gamble than in the UK. It’s one of the few countries worldwide that does not tax your casino winnings.

But if you suddenly have an extra £10,000, £300,000 or £1 million in your bank account, guess who will come knocking and asking some questions?

HMRC has a habit of popping out of the woodwork when you least expect it, and it’s good to be prepared. In other words, you need to have records of all your big wins – whether that’s screenshots, casino accounts, or deposit and withdrawal amounts.

It’s a good habit to get into anyway. It will help you keep track of your gambling budget and make sure you realise when you need to take a break if you are losing more than you are winning.

Generally speaking, if you’ve won more than 30-40% of your total monthly wage, get some proof of the win.

The win could be years old, and you may have closed the casino account or forgotten even which casino you’ve won. And “I don’t know” is not an acceptable answer on an HMRC form.

When Casino Winning Are Taxable in The UK

If you are lucky enough to win a large sum of money – say a million and a half from the Dream Drop Jackpot slots – your first instinct may be to share your good fortune.

After all, every penny of your gambling winning is tax-free to do as you like, right?

Up to a point. Most of us won’t see those kinds of sums of money, and it may not occur to us that there’s a difference between buying a house for ourselves and buying a house to rent out or even give to family.

As the Tax Scout happily point out; if you are then making money from your winnings, that money is taxable. Example include:

  • You can only give £3,000 as a ‘gift’ tax-free. Any more is taxable by the person receiving the gift
  • Any interest accumulated on your account from winnings is taxable
  • You will have to pay income tax on any investments you make with your winnings
  • Your winnings become part of your estate and, therefore, will be liable to inheritance tax when you die

If you are in a happy situation where you’ve won enough gambling to invest and retire, then congratulations! You may not be able to lead a tax-free life, but it’s nothing a good accountant won’t be able to fix.

Always play responsibly

As long as you keep good records and gamble responsibly, you are lucky to live in a country that knows it’s better to tax those making a profit out of gambling rather than those of us having fun and hoping for a better day than yesterday.

We have some brilliant UK casinos for you to enjoy here at LuckyMobileSlots.com, all fully licensed and governed by the rules of laws of the British Isles.

You don’t get much safer, and if you do win, you know that the casinos need to keep all records of their wins and losses, allowing you to enjoy your tax-free casino winnings with plenty of peace of mind.

Our favourite UK Casino? Currently, that has to be Casumo Casino, which has given all Lucky Mobile Slots players an exclusive and bigger Casumo UK Bonus to enjoy all their games for longer.

They also have a huge selection of progressive jackpots, so if it’s big or nothing that you want, you’ve got it right here at Casumo.

CASINO OF THE MONTH - August 2024

Get 150 Welcome Spins to win Massive Jackpot for €$10 Deposit

Grand Mondial Casino Logo
Licenced In: Malta, UK
Play at Grand Mondial Grand Mondial Review
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org

Take Our Top Rated Casinos For A Spin

Enjoy playing slots online at licensed casinos which offer bonuses, promotions and thousands of casino games to bet on.
Rizk
100% Bonus up to €100 + 50 Free Spins + Wheel of Rizk Free Spin
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Casino Friday
100% up to €$500 + 200 Free Spins
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Grand Mondial
Get 150 Welcome Spins to win Massive Jackpot for €$10 Deposit
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Videoslots
Get 11 Free Spins Bonus + 100% up to €$200 Bonus
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Casumo
Get 100% Bonus Up To €300 + 20 Free Spins On Book of Dead
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Jackpot City
Get up to €$1600 in Bonus over your first 4 deposits
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Leo Vegas
Get 20 Free Spins No Deposit & 200% Welcome Bonus
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Vera & John
Get 100 Free Spins on Gemix with €$10 First Deposit
Full T&Cs Apply - #Ad. 18+ New Customers Only. Min Deposit, Full T&Cs Apply, & Bonus Wagering Requirements Apply. Please Gamble Responsibly. www.begambleaware.org
Show More
Casino Sites

Latest Slot Tips & Insights

Get more slot tips, find in-depth articles into common questions, interviews with top slots providers about their latest releases, and lists of popular slot series in the Lucky Mobile Slots blog.
Casino Blog
Lucky's Top Casino
LeoVegas Casino Bonus UK with Big Bass Splash Free Spins
LeoVegas UK Casino Welcome Bonus: 50 Free Spins + £100 Cash – No Wagering
If you’re looking for a fresh UK casino gambling experience with enticing rewards, LeoVegas Casino might just have what you need.Known for its wide variety of slots, casino games and friendly service,...
Find Out More

Ad Disclosure

Here at LuckyMobileSlots.com we are committed to providing you with unbiased slots reviews for free. In order to continue this we have affiliate links on our site from our trusted partners from which we may earn money at no extra cost to you. This helps us keep LuckyMobileSlots.com free for everyone to enjoy.
Close