How to Declare Betting Winnings for Tax in the UK 2025

UK Betting Winnings – The Official Tax Position

The official tax position in the UK regarding betting winnings is that most players are typically exempt from having to pay anything. Casual bettors are not required to pay anything on winnings that they earn, as gambling is categorised as a hobby by the HMRC.

Things become a little more complex regarding professional gambling. It can depend on how HMRC view specific situations. If they deem it to be business-like (trade), taxes can be applied to earnings. However, HMRC almost never applies the rules unless it can be proved to be related to a commercial enterprise. Seeking advice is always recommended.

Compared to many other jurisdictions, the UK’s tax rules on gambling winnings are very favourable. Players do not pay anything, with operators required to pay duties. Elsewhere, players can be penalised.

• USA: Players must declare winnings and pay tax on them (depending on the state, the tax can be up to 24% or more).
• Germany: Players must pay 5% of winnings.
• Canada: Case-by-case
• Australia/Ireland/France: No player taxes

Best Betting Sites for Tracking Winnings and Multiple Odds Formats 2025

Players should look for the best betting sites that allow them to track their winnings easily, especially if taxes need to be paid on them. While keeping a spreadsheet can be advantageous, sites that allow you to track your winnings can streamline the process further.

Check out our list of reputable UKGC-licensed betting sites below to get started, as each of these has been reviewed and tested to ensure they are credible:

When You Must Declare Betting Winnings

Firstly, casual bettors do not have to declare their winnings from gambling. It’s rare for UK gambling winnings to need to be declared, but instances do exist.

If the gambling is considered part of a trade or business, or is linked to other taxable income sources, it may need to be declared. Examples of this can include:

• Sponsorships, media appearances, or endorsements linked to gambling
• Content creation, influencer income, or paid gambling advice
• Interest, investment, or capital gains
• Winnings declared as part of an estate for Inheritance Tax purposes

How to Declare Betting Winnings on Your Tax Return

Bettors should find out if they need to declare any betting winnings with a financial advisor, tax professional, or by using the HMRC’s online checker if they are unsure of what they need to do.

When it comes to declaring any winnings that need to be made, punters must go through the HMRC’s Self Assessment system. To complete the online forms and provide the required details, players should be organised and have all of the documentation and figures they need to hand to make the process easier. Documents will need to include everything to do with gambling-related earnings.

Once the tax return form has been completed and submitted, the required taxes will need to be paid.

The following dates are in place for the 2024/25 tax year:

Common mistakes that must be avoided include:

• Missing deadlines can result in fines.
• Failing to declare everything
• Poor record-keeping
• Filing for the wrong tax year
• Assuming all winnings are exempt

Betting Winnings Abroad – Cross-Border Tax Rules

For UK residents, winnings from foreign betting sites or physical casinos remain tax-free under UK law, just like domestic winnings. You are not required to pay UK tax on these amounts as long as your gambling isn’t officially deemed a trade or business by HMRC.

Some countries will tax the winnings immediately, which is non-refundable in the UK. Also, if taxes are applied abroad, you may need to apply for a tax refund.

The UK has double taxation treaties with many countries (including the US) that aim to prevent being taxed twice on the same income. Foreign winnings must be converted to GBP for UK tax purposes using the official exchange rate at the date of receipt. Currency conversion accuracy is essential for accurate business declarations and reporting requirements.

Common Misconceptions About Betting Taxes

Several myths exist regarding taxes and winnings earned while gambling. Here are some of those and the official guidance around each misconception that is held.

“All Gambling Winnings Are Always Tax-Free in the UK”

While most gambling winnings are typically tax-free, those that are deemed to be considered a trade or business are subject to taxation. HMRC will carry out checks and “badges of trade” tests to determine whether the activity falls under business practices.

“HMRC Doesn’t Care About Winnings from Abroad”

HRMC doesn’t care about winnings from abroad, as long as they aren’t considered business-like. If they do, they may apply the rules on double taxation relief and currency conversion.

“You Never Have to Report Gambling Winnings”

Casual bettors do not, but professionals must report their winnings to HMRC.

“HMRC Doesn’t Check Gambling Income”

HMRC do check for gambling income when significant, frequent, or suspicious gambling transactions occur.