Gambling in the UK isn’t just about chance – it’s also a source of tax income. Betting and gaming duties play a role in supporting public finances. The estimated revenue from betting and gaming duties in UK in 2024-25 stands at £3.6 billion, according to the Office for Budget Responsibility (OBR).

  • The £3.6 billion expected from betting and gaming duties equals 0.3% of total UK tax receipts. That’s also about 0.1% of national income and works out to £125 for every household. These duties cover a range of gambling types, from casino profits to lottery ticket sales.

  • Lottery duty applies only to the National Lottery, not smaller or private lotteries. It’s charged as a fixed share of all ticket sales, including scratch cards and Euromillions sold in the UK. All other lawful lotteries are exempt from this specific duty.

  • Machine games duty (MGD) covers slot machines and similar devices offering cash prizes. The duty amount is based on game cost and potential cash payout. Non-cash games and machines with high costs but low cash prizes are exempt from MGD.

  • General betting duty (GBD) targets bookmakers’ profits from general and spread bets. This includes most sports betting and races but excludes on-course betting. On-course bets are handled separately under the horserace betting levy.

  • Remote gaming duty (RGD) focuses on online gaming operators. It taxes provider profits, even those made from promotions like free plays or bonuses. This covers games accessed online or via remote platforms.

  • UK-based casinos pay a gaming duty on their gross gaming profits. The more they earn, the higher the duty rate due to its banded structure. Profitable casinos contribute more under this tiered system.

  • Bingo duty is charged at a set rate on the promoter’s gross profits. Bingo games in homes, small venues, or for charity are exempt. Games already taxed under MGD also don’t pay bingo duty.

  • Pool betting duty (PBD) taxes the profits from bets where winners share a prize pool. This differs from fixed-odds betting as winnings depend on the total stakes. Bookmakers pay the duty on the resulting profits.

  • On-course betting at racetracks avoids all these duties. Instead, it falls under the horserace betting levy, managed by the Horserace Betting Levy Board. This applies whether bets are made in person, in shops, or online.