Are casino bonuses taxable in the UK? No, not for players. Bonus funds, free spins and the winnings they produce are gambling, and players do not pay tax on gambling winnings. The tax falls on casinos instead, through Remote Gaming Duty of 40% of their profits since 1 April 2026. The exceptions are narrow, and we cover them below. 18+.
UK players do not pay tax on casino bonuses, free spins or the winnings they lead to.
Casinos pay Remote Gaming Duty on their profits: 21% until 31 March 2026, 40% from 1 April 2026.
Nothing is deducted from your withdrawal, and you do not declare gambling winnings on a tax return.
Money you later earn from winnings, such as savings interest, follows normal tax rules.
Players living outside the UK should check the rules where they are resident.
Tax on players’ winnings
None in the UK
Tax on bonus credit or free spins
None for players
Remote Gaming Duty
40% of operator profits from 1 April 2026
Previous rate
21% to 31 March 2026
Deducted from withdrawals
Nothing
Are casino bonuses taxable? The short answer
For an ordinary player in the UK, no part of a casino bonus is taxed: not the bonus credit, not the free spins and not the cash you withdraw. HMRC’s long-standing position, set out in its Business Income Manual at BIM22015 (opens in a new tab), is that betting and gambling as such do not amount to trading, so a player is not carrying on a business. Gambling winnings are therefore outside Income Tax. Our page on gambling winnings tax covers the background.
Tax treatment of each part of a casino bonus for UK players
What you receive
Example
Taxed for the player?
Deposit match bonus
£25 bonus on a £25 deposit
No
Free spins
100 spins at 10p
No
Winnings from spins or bonus play
£40 withdrawn after wagering
No
Money-back rewards
OJOplus paid on every game played
No; it comes from gambling
Your withdrawal
Cash sent to your bank
No; nothing is deducted
Who does pay tax on casino bonuses?
The casino does. Online casinos pay Remote Gaming Duty on their profits from customers in the UK. The government’s gambling duty changes (opens in a new tab) raised the rate from 21% to 40% on 1 April 2026, with the higher rate applying only to profits from that date. Operators also pay a statutory levy that funds research, prevention and treatment.
Who pays what on UK online casino play
Charge
Paid by
Rate or detail
Remote Gaming Duty
Casino
40% of profits from 1 April 2026 (21% before)
Statutory gambling levy
Casino
1.1% for online operators
Income Tax on winnings
Nobody
Not charged on gambling winnings
Tax deducted from withdrawals
Nobody
No deduction is made
Our pages on Remote Gaming Duty and the statutory levy explain each charge. Whether the higher duty changes the size of bonuses offered is a commercial decision for each casino; the cap on wagering is a separate Gambling Commission rule.
Casino bonus tax: three worked examples
These examples show the tax position at each step of real-world bonus types. Outcomes vary widely, and most bonus sessions do not end in a profit.
No-wagering spins. 100 free spins at 10p are £10 of spins, returning about £9.60 on average at 96% RTP. If a session pays £22 in cash, you withdraw £22 and owe no tax on it.
Match bonus. You deposit £25 and receive a £25 bonus with 10x wagering, so £250 of play, costing about £10 on average at a 4% house edge. If you finish with £60 and withdraw it, the full £60 is yours with no tax.
A large win. Even a five-figure payout from a slot played with bonus funds carries no Income Tax for a UK player. What you then do with the money, such as saving or investing it, can create taxable income of its own.
Do you need to declare casino bonus winnings?
No. Gambling winnings are not income for tax purposes, so they do not go on a Self Assessment return. The GOV.UK Income Tax overview (opens in a new tab) lists premium bond and National Lottery prizes among things you do not pay Income Tax on, and casino winnings follow the same principle. Casinos do not deduct tax, and our answer on whether casinos report bonus winnings to HMRC explains what they do and do not share.
When casino bonus money can lead to tax
The tax-free position covers the winnings themselves. A few situations sit outside it.
Interest or returns on winnings: once you put winnings in savings or investments, the interest, dividends or gains follow normal tax rules.
Living abroad: if you are resident in another country, its tax rules may treat gambling winnings differently; check locally.
Gambling as a business: HMRC’s view is that gambling as such is not trading, but a business that earns from gambling-related services, such as running a gambling website, is taxed on that business income.
Tax is not the only reason people ask. Bonuses and winnings can appear on bank statements, and a lender or benefits assessor may ask about gambling transactions when reviewing your finances. That is not tax, but it is a reason to keep gambling within a budget and keep records. Casinos themselves may ask about your finances under anti-money laundering and safer gambling rules; see what a source of funds check is.
Casino bonus tax myths
Myth: big wins are taxed at 20%. Fact: UK players pay no tax on gambling winnings of any size.
Myth: you must pay tax before a casino will release winnings. Fact: a demand like that is a strong sign of a scam; see whether no deposit bonuses are a scam.
Myth: the 40% duty is taken from your winnings. Fact: it is charged on the casino’s profits, not your payout.
Myth: you must keep winnings under a set amount to stay tax-free. Fact: there is no threshold; the size of a win does not change the position.
Are casino bonuses taxable in Scotland, Wales and Northern Ireland?
The position is the same across the UK: players do not pay tax on gambling winnings. Gambling regulation does differ, though. Gambling Commission rules cover Great Britain, and Northern Ireland has its own law with no full online gambling framework; PlayOJO’s welcome offer excludes Northern Ireland. Our guide on bonuses for Northern Ireland players explains the differences.
Tax-free does not mean profitable
No tax on winnings makes a bonus no more likely to pay out. The house edge still applies to every spin, and wagering means more spins. Treat bonuses as a small extra on money you have already set aside for entertainment. If gambling stops feeling that way, the National Gambling Helpline is free on 0808 8020 133, and our responsible gambling page lists more support. Our guide to the expected value of a casino bonus shows the averages honestly.
Tax-free cash winnings from partner offers
Every partner offer pays winnings tax-free for UK players, and three pay spin winnings as cash with no wagering. Coral: deposit and bet £10 on slots for 100 free spins at 10p, 48 hours to accept, 7 days to use. Ladbrokes: deposit and spend £10 on slots for 50 free spins a day for 10 days, up to 500 at 10p, each batch claimed before 23:59. PlayOJO: 80 free spins at 10p on Big Bass Bonanza with a £10+ first deposit, winnings paid in cash, excluding Northern Ireland.
All are for new customers aged 18 or over, and terms apply, including excluded payment methods at Coral and Ladbrokes. Casumo and 10bet offer match bonuses with 10x wagering. More answers sit on our questions hub.
Coral and Ladbrokes are both run by LC International Limited (Entain). If you already hold an account with one Entain brand, you may not be able to open a new account with another; check the terms before signing up.
Significant terms: 18+. New players only. Offer runs 01/10/2026 to 01/02/2027. Deposit (certain types excluded) and bet £10+ on slot games to get 100 free spins (selected games, £0.10 each, 48 hrs to accept, valid 7 days). No wagering on free spin winnings. Deposits by Neteller, PayPal, Paysafe, Skrill, prepaid cards and certain debit cards do not qualify. Restrictions and T&Cs apply. GamCare.org.uk
Read the Coral reviewLicence: LC International Limited, UKGC account 54743. Offer checked 5 October 2026.
Significant terms: 18+. New customers only, from 14/11/25 until further notice. Certain deposit methods excluded. Deposit and spend £10+ on slots for 50 free spins a day during the first 10 days after first deposit and registration (max 500, £0.10 each, selected games, claim before 23:59 each day, valid 7 days). No wagering. Prepaid cards, PayPal, Paysafe, Neteller, Skrill and Moneybookers deposits do not qualify. Restrictions and T&Cs apply. GamCare.org.uk
Read the Ladbrokes reviewLicence: LC International Limited, UKGC account 54743. Offer checked 5 October 2026.
Significant terms: 18+. New UK customers (excluding Northern Ireland). First deposit only. Minimum deposit £10. 80 free spins on Big Bass Bonanza, £0.10 each. No wagering requirements; winnings paid in cash. Cannot be used with any other offer. Only available to players who arrive through the designated offer link. Full T&Cs apply. GamCare.org.uk
Read the PlayOJO reviewLicence: Skill On Net Limited, UKGC account 39326. Offer checked 5 October 2026.
18+. Gambling should be entertainment that costs money, not a way to make it. Decide a budget before you play: set a budget. Free, confidential help: National Gambling Helpline 0808 8020 133.
Frequently asked questions
Do I pay tax on free spins winnings?
No. Free spins winnings are gambling winnings, and UK players do not pay tax on them, whether they arrive as cash on a no-wagering offer or as bonus funds that later become withdrawable. The casino deducts nothing when you withdraw. Your only tax question arises if you later earn interest or investment returns on the money. The page on whether you can withdraw free spins winnings covers the practical steps instead.
Is a deposit match bonus counted as income?
No. A match bonus is part of a gambling transaction rather than earnings from work or a business, so it is not income for tax purposes. HMRC’s view is that gambling as such is not trading. That stays true whether you lose the bonus during wagering or turn it into cash. Our answer on whether a casino bonus is income looks at the question in more depth, including the trading test.
Does the casino take tax from my withdrawal?
No. UK casinos pay their own duty on profits and do not deduct anything from players’ withdrawals for tax. If you see a deduction, check the terms for a withdrawal fee, which licensed casinos must disclose before you deposit and keep to the direct processing cost. A site demanding “tax” before paying out is a warning sign of fraud. Our write-up on how long withdrawals take after a bonus covers what normally happens.
What is Remote Gaming Duty?
Remote Gaming Duty is the tax online casinos pay on their profits from UK customers. It rose from 21% to 40% on 1 April 2026, after being announced at the Autumn Budget 2025. It is charged on the operator’s gross profit, not on your winnings. A separate remote betting rate of 25% is due from April 2027. Our page on Remote Gaming Duty explains how it works and why it changed.
Do I need to tell HMRC about casino winnings?
No. Gambling winnings are not taxable for UK players, so there is nothing to declare on a Self Assessment return. It is still sensible to keep cashier records so you can show where a large sum came from if a bank or lender asks. Once winnings are saved or invested, any interest or gains follow the normal rules. Our answer on whether bonus winnings can be taxed covers the edge cases.
Are casino bonuses taxable if I live abroad?
That depends on where you are resident for tax. The UK does not tax players’ gambling winnings, but other countries have their own rules, and some do tax them. Bonuses from UK-licensed casinos are also often restricted to UK residents. If you live abroad, check the local rules and the casino’s eligibility terms before claiming. Our answer on whether you can get a bonus from abroad explains the eligibility side.
Is OJOplus money back taxable?
No. OJOplus is money back that PlayOJO pays on every game played, with no wagering, and it comes from gambling activity, so it is treated like other gambling returns for UK players. It is not income or a taxable reward. We do not quote a rate unless the operator publishes one, so check the PlayOJO help pages. Our guide on how OJOplus works explains how it is paid.
Are cashback bonuses taxed in the UK?
Not for players. Cashback on casino losses is part of the gambling relationship, so it follows the same tax-free treatment as winnings. Some cashback is paid as cash and some as bonus funds with wagering, but neither is taxed. Check the terms for any wagering, expiry or cap. Among our partners, only PlayOJO runs a money-back scheme, OJOplus. Our comparison of OJOplus vs cashback shows the differences.
Does a big jackpot win from a bonus get taxed?
No. A jackpot won with bonus funds or free spins is a gambling win and is not taxed for UK players, whatever the size. The terms of the offer may cap what you can withdraw from bonus play, so read the maximum win clause before you play. Interest earned once the money is in savings is taxed in the normal way. Our explainer on what happens if free spins hit a jackpot explains the caps.
Gambling can be addictive. Free, confidential help is available 24 hours a day from the National Gambling Helpline on 0808 8020 133. Visit GamCare.org.uk and GamCare, or block yourself from all UK-licensed gambling sites with GAMSTOP.
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