Why are winnings not taxed?
Because, in HMRC's words, betting and gambling as such do not constitute trading. Its Business Income Manual rests on a 1925 case, Graham v Green, in which the judge called a bet «merely an irrational agreement that one person should pay another person on the happening of an event», and HMRC says the decision has stood the test of time. Even a player with a system, or one skilful enough to live on winnings, is not trading, the manual adds. What is taxed is an organised activity making profits out of the gambling public: the bookmaker or casino.
What do operators pay?
| Duty | Rate | From |
|---|---|---|
| Remote Gaming Duty, online casino games | 40% of profits | 1 April 2026; 21% before |
| General Betting Duty, remote bets | 25% | 1 April 2027 |
| Remote bets on UK horse racing | 15% | unchanged |
| Bingo Duty | abolished | 1 April 2026 |
Profits here means stakes received less winnings paid out, as HMRC's guidance on the duties defines them. The changes were announced at Budget 2025 on 26 November 2025. Whether a site holds the British licence is explained on our licence check.
Where does tax still come in?
- Cryptocurrency. gov.uk lists cryptoassets among the assets on which Capital Gains Tax can be due. If you are paid in a coin and later sell or swap it, a rise in its value after you received it is a separate question from the win. Whatever the currency, the licence comes first: see UKGC or Curaçao.
- Gambling as a business. Running an organised operation that profits from other gamblers is trading, and taxed.
For your own circumstances, HMRC is the authority; this page summarises its published guidance and is not tax advice. The rules on money once it is in your account are on withdrawal rights.
