If you land a big win at an online casino, your first thought might be how to spend it. But your second might be: Do I need to share this with HMRC?
The good news is simple: as long as you play at licensed sites, casino winnings are completely tax-free in the UK.
This guide explains how gambling taxation works, why the burden falls on operators (not players), and why sticking to UKGC-licensed casinos is essential.
The Short Answer: Winnings Are Tax-Free
In the UK, all casino winnings are tax-free when you play at licensed casinos. Operators cover the gambling taxes, so your payout, big or small, is 100% yours. Whether it’s £50 from free spins or a £1,000,000 jackpot, the entire amount is yours to keep.
UK players do not pay tax on casino winnings. This applies to:
- Online slots
- Table games (roulette, blackjack, baccarat, poker)
- Live dealer titles
- Bingo and scratchcards
- Land-based casino play
To stay safe always pick UKGC-licensed sites, check bonus and withdrawal terms before playing and avoid unlicensed offshore casinos.
At Finest Casinos Online, we only recommend fully licensed UK casinos, so you can play with peace of mind and keep every penny of your winnings.
👉 See our full list of the best tax-free online casinos UK.
Who Pays the Tax Then?
In the UK, the responsibility lies with the casino operator, not the player.
- Online casinos pay Remote Gaming Duty (RGD), currently 21% of gross gambling revenue
- Land-based casinos pay Gaming Duty on a tiered scale based on revenue
- These payments go directly to HMRC
This system means that players can enjoy their winnings tax-free, while operators cover the cost of regulation.
Why UK-Licensed Casinos Matter
The tax-free rule only applies at UKGC-licensed casinos.
- Licensed operators must pay UK gambling taxes
- Offshore or unlicensed sites don’t follow the same protections
- HMRC doesn’t currently tax winnings from foreign casinos, but resolving disputes (like unpaid withdrawals) is much harder without UK oversight
👉 Always check for a UKGC licence. You’ll find the logo and licence number in the casino’s footer.
What About Professional Gamblers?
Even if you gamble regularly or make a living from it, your winnings are still not taxable. HMRC does not view gambling as a trade or profession because:
- Outcomes are based on chance
- Income is unpredictable and not considered “earned”
The only exception? If you make money indirectly through gambling, such as running a tipster service, streaming, or affiliate marketing. In that case, standard income tax rules apply.
Gambling Taxes Abroad
While the UK is player-friendly, rules vary by country:
- USA - federal and state taxes apply
- Germany - generally tax-free, but professional gamblers may face tax
- Spain - gambling winnings count as taxable income
👉 As a UK resident, you won’t pay HMRC tax on winnings abroad, but you may have taxes deducted in the country where you play.
Red Flags: When “Tax-Free” Might Not Apply
While your winnings are safe from UK tax, there are still risks to watch for:
- Unlicensed casinos: No protection if withdrawals are blocked
- Currency conversion fees: Offshore sites may pay in euros/dollars, and banks can charge fees
- Scam sites: Some refuse withdrawals altogether, leaving you without recourse
FAQs on Gambling Winnings and Tax in the UK
Do I pay tax if I win the lottery in the UK?
No. National Lottery prizes are tax-free. You’ll receive the full amount, though interest earned if you invest the money may be taxable.
Are poker winnings taxable in the UK?
No. Even consistent wins at online or live poker are tax-free. HMRC does not classify poker as a taxable profession.
What if I win money abroad?
UK residents don’t pay HMRC tax on foreign casino winnings. However, some countries (like the USA) tax wins locally.
Do I need to declare gambling winnings on my tax return?
No. Casino, betting, poker, and lottery winnings do not need to be declared.
Are professional gamblers taxed?
No. Even if gambling is your main income source, it is not taxed. Only indirect earnings (tips services, streaming, affiliates) are taxable.
Do I pay tax on free spins or bonuses?
No. Bonus winnings are tax-free too, provided they come from a UKGC-licensed site. You’ll just need to meet the bonus terms before withdrawing. For more information, see our guide "UK Casino Bonuses Explained".
