Formulating rules to regulate and legalise online casinos and betting is a process many developed countries are currently undertaking. As of 2025, the UK is far ahead: online betting is completely legal in the country, and sites are regulated by a Remote General Betting Operating Licence from the UK Gambling Commission.
Of course, shadow businesses try to find loopholes in even the most structured laws. Despite one of the most transparent betting markets in the world, the country continues to update its laws and is currently working on new ones. Will this be the right decision? And how does the online betting tax system work today? Let’s find out!
Legality and Licensing in the UK
Online betting is 100% legal in the UK for operators who hold a local licence from the UK Gambling Commission. According to the Commission, each platform must have self-exclusion tools (such as GAMSTOP), KYC technology, accurate RTP information, and anti-money laundering measures. British players tend to trust licensed websites, which is why GGBet betting website and similar platforms remain among the most popular choices in the UK.
Any UK brand must pay taxes and comply with regulations, as the government constantly monitors these practices. For example, some operators have been fined for opaque bonus programs and inadequate oversight.
Taxation of Players
A surprising fact for countries with gambling licences, and for European countries in general, is that players’ betting winnings are not taxed. This is because the legislation and practice of HM Revenue & Customs (HMRC) consider these winnings to be windfalls.
However, the situation changes if the law views regular winnings as a system. For example, if a user bets full-time, employs strategies, or takes a comprehensive approach, these winnings may be considered trading and taxed as business income.
Furthermore, winnings may be subject to tax at subsequent stages. For example, if a bettor uses the money to purchase investments, assets, or deposits it into a savings account, the government may require capital gains tax.
Taxation of Operators
The main financial burden falls on the operator, and local laws are clear and prescriptive regarding these. Here’s a general overview of the current requirements for betting sites:
|
Duty Name |
Applies To |
Rate |
Comments |
|
General Betting Duty (GBD) |
Fixed-odds betting operators, UK customers (online & offline) |
15% of gross profit; 3% for financial spread bets |
Based on place of consumption: duty applies if the customer usually resides in the UK. |
|
Pool Betting Duty (PBD) |
Operators running pool bets (non-fixed odds), UK customers |
15% of gross profit |
Covers bets where odds are pooled; excludes horse/greyhound bets (which fall under GBD). |
|
Remote Gaming Duty (RGD) |
Online casino operators, slots, poker, and other remote games for UK customers |
21% of gross profit (since April 1, 2019; previously 15%) |
Applies to “remote gaming” — games delivered online or via apps for UK players. |
Thus, even if an operator is based in another country and has a different licence, it is obligated to pay taxes if its clients are British. This allows the government to maximise control over the market and quality standards, attracting more revenue to the budget.
Innovations and a New Approach to Taxation
On April 28, 2025, a consultation on “Tax Treatment of Remote Gambling” was launched. Its goal is to review the old order and simplify the tax system. It concluded at the end of July and is awaiting further approval. Here’s what we know about it so far:
- Introduction of a single tax. The Remote Betting & Gaming Duty will apply to all online operators and completely replace the previous three groups.
- Simplification of administrative issues. Less complex reporting, greater flexibility, elimination of minor differences, and classifications of bets and games.
- Changes in tax rates. This information does not yet have precise figures; authorities are discussing increasing the percentages.
- The place-of-consumption rule as a basis. This provision will be strengthened to ensure greater oversight of offshore operators and a more equal tax environment.
The unified tax is expected to provide greater understanding and transparency. However, many are concerned about the risks: will the UK market remain attractive to operators? Will it impact players? Critics are divided, awaiting more concrete figures and facts.
What’s next: Future of UK Tax System
A strong control and tax system has allowed the UK to have a “relatively low rate” of unhealthy addictions among the population. Control tools and the removal of tax liability from bettors make the process transparent and straightforward.
The innovations and discussions surrounding the new tax demonstrate that the government is actively working to ensure a fair and equal system for everyone, and rigorous audits maintain a high standard of quality.
