UK gambling taxes are a core part of the UK’s framework for regulating betting and gaming. Beyond licensing and consumer protections, operators face specific HMRC-administered duties that apply across distinct gambling activities, from land-based casinos and betting shops to online gaming platforms and betting exchanges. These taxes are charged to operators, not players.
What this article is about: This gateway guide (2025 position) explains the five main UK gambling taxes—General Betting Duty (GBD), Pool Betting Duty (PBD), Remote Gaming Duty (RGD), Gaming Duty (land-based casinos), and Machine Games Duty (MGD). For each duty it sets out scope, rates, and how liability is calculated, with practical compliance notes on registration, record-keeping, returns and payment timings. The guide also clarifies that individual players’ winnings are not taxed and that professional gambling is generally not treated as a taxable trade by HMRC unless combined with another taxable activity.
Section A: General Betting Duty (GBD)
General Betting Duty (GBD) taxes the profits made from fixed-odds and similar betting offered to UK customers. It applies to bookmakers, betting exchanges, and remote betting operators. Liability is determined by the customer’s location: UK bets are within scope whether the operator is established in the UK or offshore.
1. Scope of GBD
GBD applies to operators who take UK bets, whether through high-street betting shops, online sportsbooks, mobile apps, or betting exchanges where customers may place wagers against each other. Spread betting is not charged under PBD; it is taxed within the GBD regime under separate rules.
2. Basis of calculation
GBD is charged on gross profits from UK bets, not on stakes. Gross profits are generally stakes received minus winnings paid out (subject to HMRC rules for adjustments and voids). The focus on profit aligns the duty with the operator’s retained betting margin rather than turnover.
3. Current rate (2025)
The GBD rate is 15% of gross profits attributable to UK bets. The rate is a flat percentage applied to the taxable profit figure for the accounting period.
4. Compliance and returns
Operators must register with HMRC for GBD before taking liable bets and maintain accurate, auditable records of stakes, winnings, and adjustments that support their gross profits calculations. Returns are typically submitted quarterly and payment is due within 30 days after the end of the duty accounting period. Late filing or payment can attract penalties and interest. Operators should also ensure systems identify the customer’s location reliably, as this determines UK liability.
Section A summary: GBD taxes UK betting profits at 15% on a gross profits basis. It applies to bookmakers, betting exchanges, and remote betting operators offering to UK customers. Robust registration, geo-location controls, record-keeping, and on-time quarterly filings are central to compliance.
Section B: Pool Betting Duty (PBD)
Pool Betting Duty (PBD) applies when all stakes are combined into a central pool and shared among winning participants. Unlike fixed-odds betting, where the bookmaker determines odds and payouts, pool betting relies on the size of the pool and the number of winners. The operator’s profit comes from retaining a portion of the stakes, and it is this profit that is taxed.
1. Scope of PBD
PBD covers traditional football pools, tote betting on horse racing, and other pooled betting schemes. The operator running the pool is responsible for paying the duty. Spread betting is excluded from PBD and instead falls under General Betting Duty rules.
2. Basis of calculation
PBD is charged on the operator’s profits, calculated as total stakes collected minus prizes distributed. The duty does not fall on individual bettors’ winnings but on the retained profits of the pool organiser.
3. Current rate (2025)
The PBD rate is 15% of the operator’s profits. This matches the General Betting Duty rate, ensuring consistency across betting tax regimes.
4. Compliance and returns
Operators running pool betting schemes must register with HMRC and file quarterly returns. They must keep accurate records of stakes, prizes, and profit calculations. Payments are due within 30 days of the end of each accounting period. HMRC can impose penalties and interest for late or inaccurate filings.
Section B summary: PBD taxes profits from pool betting, including football pools and tote systems, at 15%. Operators must register, maintain records, and file quarterly returns to HMRC.
Section C: Remote Gaming Duty (RGD)
Remote Gaming Duty (RGD) is charged on online and remote casino-style games offered to UK customers. It was introduced to ensure operators pay tax in the UK regardless of where they are based, replacing previous Gaming Duty arrangements for remote providers. The duty reflects the growth of online gambling and the government’s focus on ensuring UK players are consistently taxed.
1. Scope of RGD
RGD applies to remote casino games such as online slots, roulette, blackjack, poker, and other interactive gaming products. Liability is determined by the customer’s location rather than the operator’s base of operations. This means offshore operators offering services to UK players must also register with HMRC and pay RGD.
2. Basis of calculation
RGD is charged on Gross Gaming Yield (GGY), defined as the total stakes received from players minus prizes paid out. This ensures the duty targets the actual retained yield from gaming activity rather than turnover.
3. Current rate (2025)
The RGD rate is 21% of GGY. This higher rate, compared to other duties, reflects the significant revenue generated by the online gaming sector.
4. Compliance and returns
Operators must register with HMRC for RGD before offering remote gaming services to UK customers. Returns are generally submitted quarterly, with payment due within 30 days after the end of each duty period. Accurate tracking of customer location, stakes, prizes, and GGY calculations is critical. Non-compliance may result in penalties, fines, or reputational harm, particularly for offshore providers seeking UK market access.
Section C summary: RGD taxes online casino-style games offered to UK customers at 21% of gross gaming yield. Compliance obligations apply equally to UK and offshore operators, requiring robust systems for reporting and quarterly payments to HMRC.
Section D: Gaming Duty (Land-based Casinos)
Gaming Duty applies to the profits of licensed land-based casinos in the UK. It covers income from table games such as roulette, blackjack, and baccarat, as well as from gaming machines within casino premises. The duty is structured progressively, ensuring larger casinos with higher profits contribute proportionally more tax.
1. Scope of Gaming Duty
The duty applies to all UK-licensed casinos. It does not cover activities taxed under other regimes, such as General Betting Duty or Machine Games Duty. Casino operators must distinguish between different gambling streams to apply the correct duty.
2. Basis of calculation
Gaming Duty is charged on gross gaming profits, calculated as stakes received minus winnings paid out. Unlike flat-rate duties, Gaming Duty is banded and progressive, meaning profits are split into bands and taxed at increasing rates as profits rise.
3. Current rates (2025)
Gaming Duty ranges from 15% to 50% of gross gaming profits. Smaller casinos with modest profits pay at the lower end, while high-profit casinos fall into higher bands. The progressive application ensures proportional taxation rather than a single rate across all profits.
4. Compliance and returns
Casino operators must register with HMRC and file quarterly returns showing detailed profit calculations. Payments are due within 30 days after the end of the accounting period. HMRC may audit casino accounts, making accurate record-keeping and correct application of progressive rates essential. Errors in banding can lead to underpayment or penalties.
Section D summary: Gaming Duty applies to land-based casinos on a progressive scale of 15%–50% of gross profits. Operators must register with HMRC, keep precise records, and apply the correct bands when submitting quarterly returns.
Section E: Machine Games Duty (MGD)
Machine Games Duty (MGD) applies to gaming machines made available for play in the UK. These include fruit machines, slot machines, fixed-odds betting terminals (FOBTs), and similar devices where players pay to play for a chance to win a prize. MGD ensures that machine-based gambling profits are taxed separately from other forms of gambling.
1. Scope of MGD
MGD is payable by the person or business making the machines available for play. It applies in venues such as betting shops, arcades, pubs, clubs, and casinos. Certain low-stake amusement machines, such as Category D machines, are exempt from MGD.
2. Basis of calculation
The duty is based on the net takings from each machine. Net takings are defined as stakes received minus prizes paid out. Machines are categorised by their stake and prize limits, which determine the applicable duty rate.
3. Current rates (2025)
MGD is charged at rates between 5% and 20% of net takings, depending on the category of machine. Higher-stake, higher-prize machines are taxed at the higher end of the scale, while lower-stake machines are taxed at lower rates or exempt.
4. Compliance and returns
Operators must register with HMRC for MGD and file quarterly returns, with payments due within 30 days after each accounting period. Accurate records must be maintained for each machine, especially where multiple categories of machines are operated. HMRC has the power to audit operators’ records to confirm compliance.
Section E summary: MGD taxes gaming machines at rates of 5%–20% of net takings. Operators must register, maintain detailed machine records, and file quarterly returns to HMRC, with Category D amusement machines exempt from the duty.
FAQs
1. Who pays gambling taxes in the UK?
Gambling taxes are paid by operators, not individual players. This includes bookmakers, casinos, online gaming companies, betting exchanges, and businesses providing gaming machines.
2. How do remote operators calculate Remote Gaming Duty?
Remote Gaming Duty is calculated on gross gaming yield (GGY), which is the total stakes received minus prizes paid out. Offshore operators serving UK players must also register with HMRC and calculate RGD on this basis.
3. Are gambling winnings taxed for individual players?
No. Gambling winnings are not taxed for individual players in the UK. The duty is applied to operator profits. HMRC generally does not tax professional gamblers as a trade unless the gambling activity is combined with another taxable business.
4. How often must operators file returns for gambling duties?
Most gambling duties require quarterly returns, due within 30 days of the end of each duty accounting period. Operators must register separately for each relevant duty and keep records to support their filings.
5. What happens if gambling taxes are unpaid or filed late?
HMRC may impose penalties, interest charges, and take enforcement action against operators who fail to file or pay on time. Persistent non-compliance risks reputational damage and could result in licence suspension or revocation.
Conclusion
UK gambling taxes are a cornerstone of the regulatory and fiscal framework. The five main duties—General Betting Duty, Pool Betting Duty, Remote Gaming Duty, Gaming Duty, and Machine Games Duty—ensure operators contribute fairly across all gambling activities. Each duty has distinct rules, rates, and compliance requirements, from flat-rate betting taxes to progressive casino duties and machine-specific levies.
While players’ winnings remain tax-free, operators must meet extensive obligations. These include registering with HMRC, maintaining accurate records, calculating duties correctly, and submitting quarterly returns with payment due within 30 days of each accounting period. HMRC has significant powers of audit and enforcement, meaning compliance failures can result in penalties, reputational damage, or licence risks.
For gambling operators, compliance is not just about avoiding penalties. It is also central to financial planning and operational integrity. By understanding and managing their gambling tax responsibilities, operators can remain competitive while meeting their regulatory duties within the UK’s controlled gambling environment.
Glossary
| Term | Definition |
|---|---|
| General Betting Duty (GBD) | A 15% tax on the gross profits of bookmakers, betting exchanges, and remote betting operators offering bets to UK customers. |
| Pool Betting Duty (PBD) | A 15% tax on operator profits from pool betting schemes such as football pools and horse racing totes. |
| Remote Gaming Duty (RGD) | A 21% tax on the gross gaming yield (stakes minus prizes) of remote casino-style games provided to UK players. |
| Gaming Duty | A progressive tax on land-based casino profits, ranging from 15% to 50% depending on profit bands. |
| Machine Games Duty (MGD) | A tax of 5%–20% of net takings from gaming machines such as fruit machines and FOBTs. Certain low-stake machines are exempt. |
| Gross Gaming Yield (GGY) | Total stakes received from remote gaming minus prizes paid out to players. |
| Net Takings | Stakes received minus prizes paid out on gaming machines, used to calculate MGD. |
| HMRC | His Majesty’s Revenue and Customs, the UK authority responsible for administering and collecting gambling duties. |
| FOBT | Fixed-Odds Betting Terminal, a type of machine subject to MGD. |
| Compliance | The process of registering, calculating, reporting, and paying gambling duties in line with HMRC rules. |
Useful Links
| Resource | Link |
|---|---|
| HMRC: Betting and Gaming Duties | https://www.gov.uk/guidance/betting-and-gaming-duties |
| HMRC: Remote Gaming Duty | https://www.gov.uk/guidance/remote-gaming-duty |
| HMRC: Machine Games Duty | https://www.gov.uk/guidance/machine-games-duty |
| HMRC: Gambling Duties Overview | https://www.gov.uk/topic/business-tax/gambling-duties |
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
