If you want to get ahead in the modern world you need a sound foundation in business and finance.
That's where we come in at CMT Corp. We give you the answers to the business questions that you didn't even know you had. Together we will achieve all our financial goals.

Sincerely yours,
CMT Team

Stay Updated

Tax Implications for Big Wins

Gambling in the United Kingdom

The fact that you are somehow reading this article means that you are definitely interested in gambling in the UK. On the one hand, you may be thinking about trying your hand out in one of the numerous online gambling sites popular among UK residents. If you have not heard of these sites, you can learn about the basics at https://www.onlinescam.net/casino/. On the other hand, you may be visiting one of the grand casinos in the area. Regardless of how you plan to gamble, there is one important issue you need to consider.

 

Taxation for Casinos

In the US and in many other countries, casino winnings (gambling wins, in general) are taxed by the government. In Las Vegas, for example, the general tax rate is 25% of the amount won. However, that percentage may still be higher or lower depending on how much you won exactly. If your winnings exceed a specific threshold, the administration is required to hand over a tax form detailing the amount you won and how much the tax is (if withheld).

 

Casino Winnings and Taxation in the UK

At this point, it is only natural to fear the worst: are casino winnings taxed in the UK? The plain and simple answer is no. It does not matter if you play poker or any other game via online gambling sites or in physical casinos. Your winnings are completely yours to keep as long as you play through legitimate channels.

 

How Is That Possible?

Don’t worry. There is no catch. The government does not touch your winnings because they get their share of the income in the gambling industry from the casinos themselves. Tons of paperwork need to be accomplished before a casino could be issued a licence, and these come with hefty fees. The same goes for renewals. Moreover, the government taxes casino profits. Online and physical casinos alike regularly remit a certain percentage of their profits to the government.

 

How Did It Happen?

UK residents did not always get to gamble without having their winnings taxed. In fact, this was the case since gambling became mainstream in 1960 with the enactment of the Betting and Gambling Act until 2001. In the past, betting shop owners were taxed (6.75%, called a betting duty), and that tax was passed on to the customers as a 9% tax. This practice was carried out for decades until Gordon Brown, then Chancellor of the Exchequer, abolished the betting tax in 2001 and decided to instead tax the operators more.

 

What the Future Looks Like

There are currently rumours that talks are in the offing about taxing casino winnings again. However, we have yet to see a sliver of evidence supporting such claims. It seems like the government is still more focused on taxing these operators instead of the punters. This makes sense, seeing how casinos earn in a single day what you only win once in a lifetime.

 

Please wait...

Subscribe to our newsletter

Want to be notified when our article is published? Enter your email address and name below to be the first to know.