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1. When Did Online Gambling Start In Uk History
2. When Did Online Gambling Start In Uk Today
3. When Did Online Gambling Start In Uk 2020
4. When Did Online Gambling Start In Uk 2019

The UK Gambling Commission is responsible to safeguard all UK players against frauds and misleading online casinos. This is usually a really good thing, but sometimes they may affect your gameplay. The most recent example that irked certain players was the ban on credit cards, which is in effect since the 14th of April 2020. Online gambling. If you would like to self-exclude from online gambling you can visit GAMSTOP (www.gamstop.co.uk) which now enables UK and NI residents to exclude themselves from all gambling sites licensed to operate in Great Britain for free, for a period of 6 months, 1 year or 5 years.

In short for the customer there is no tax to pay on either bets or any subsequent winnings in the UK. If you are not based in the UK you may be liable for tax in your own jurisdiction if you take any winnings back to that teritory, you are advised to check in advance.

It may seem strange to some people that the UK Government don’t want a slice of the pie from punters. Don't worry the government still get their two pound of flesh they just now take it direct from bookies in the form of point of consumption tax. Tax laws were changed in 2001, again in 2014 and then 2018 to reflect the changing nature of gambling moving progressively from the high street to online. These new laws removed the need for the bettor to directly pay a levy, this was instead shifted to the bookmaker in a move designed by the government to increase tax revenue from online operators based off shore.

Beware however, there are some instances in which tax may need to paid, such as in the case of index and financial betting. In this article we tell you everything you need to know about betting tax, we tell you if you need to declare winnings, what to do if you’re a professional gambler, the old rules, history and more.

• Tax:

What was the old Gambling Tax Law?

Prior to the 1960 Betting and Gaming Act it was illegal to place cash bets away from licenced race courses and tracks. The 1892 Gaming Act created the Totalisator board, commonly known as the Tote, set up to accept wagers at race courses and greyhound tracks from punters. It was however illegal to take bets off site unless these were made by post or over the phone.

Many illegal bookmakers operated throughout these periods and the large betting black market that ensued showed the government there was a huge demand for off site bookmaking, and crucially this could be taxed. This led to the 1960 Act that principally regulated and licenced high street betting shops.

The first shops opened in 1961 but under the condition that a new levy was to be charged at 6.75% to bookmakers. Bookies passed this on to punters in the form of a 9% betting tax. The tax could either be paid at the time of placing a bet or on the winnings instead. A levy of 9% on winnings can be a lot of money so most people elected to pay the tax on the stake.

What is the current Gambling Tax Law?

By the time of the new millennium the betting landscape was changing with more and more gambling moving towards telephone betting and betting online. This allowed companies to move offshore to tax havens such as Gibraltar, Malta, The Caymans, etc., from where they could allow punters to bet tax free. The earliest and most famous of these migration was the bookmaker named after Victor Chandler, now known as BetVictor. Victor moved his operation to Gibraltar in 1998 and this was said to be the final straw for the then Chancellor Gordon Brown who legislated a change to the gambling tax law.

In 2001 the betting levy was abolished and replaced instead by a 15% tax on bookmakers gross profits in the UK at point of supply. This was a landmark day for punters in Great Britain who could now bet tax free win or lose. However, when you think about it, bookmakers are businesses and therefore you are still paying the tax today, only now it is indirectly passed on to customers in the form of poorer odds and bigger operator margins.

Unfortunately however this new legislation didn't solve the ultimate problem, as more and more betting companies moved their online operations offshore. The tax at the time was 'point of supply' meaning offshore gambling brands were charged tax based on where they were based, meaning they would pay the local tax rate on profits instead of full UK tax. In Gibraltar for example this was capped at 1% or a maximum of £400k.

This didn't just result in the online-only operators to moving abroad it also caused the bigger, older, high street names, such as Coral, to move their online operators abroad too. Effectively keeping the high street business in the UK, with profits liable to UK tax, but moving all of the online profits abroad. As the online industry steadily grew over the subsequent decade this problem became more and more visible to the treasury.

In 2014 an amendment to the 2005 Gambling Act the tax legislation was issues. This contained a new 15% point of consumption tax on all gross profits. This now meant off shore companies were obliged to pay tax on profits earned from UK based customers to the UK treasury. Failure to do so would mean the betting company would not be re-issued with, or could not obtain, a UK gambling licence. As it is a legal requirement to have a licence to offer gambling services in the UK this also means it is a leagal requirement for all operators to pay the tax.

New 21% Point Of Consumption Tax For Remote Gambling in 2019

The UK chancellor, Philip Hammond, announced in his budget in 2018 that the a higher rate 21% point of consumption tax will now be imposed for online gambling on 'games of chance', up from 15%. This means if you play casino games, slots, table games like blackjack, poker, virtual or any other fixed odds game of chance, there will now be a 6% higher tax on the profits made by a casino site operating in the UK.

This will come into effect on the 1st October 2019, at the same time the new £2 limit on FOBT's will come in for high street shops. The main effect customers will notice will be poorer odds and return to player amounts as online gambling companies will largely pass on these costs to the customer. The competitiveness and profitability of the industry however should at least mean some of these costs are borne by the gaming companies at least. We may notice, in combination with Brexit, that more companies may leave the UK market in light of this new higher tax. We will update this section as more information is announced.

Gambling Tax FAQ's

Do Professional Gamblers Pay Tax?

Professional gamblers, or those who live off the proceeds of fixed odds gambling, do not need to pay tax whatsoever on their winnings. Conversely however you of course cannot get a tax refund on your loses either.

If you are a resident in another country, other than the UK, you may be liable to pay tax on your winnings. This could be the case if you either declare tax in another country or you try to take the money back into another territory. Check your local betting tax laws if you are unsure of the gambling tax where you are based.

I'm a visitor to the UK do I have to pay gambling tax?

You do not need to pay a penny to the UK government but depending on the laws in your country you may be liable to declare any winnings.

Beware however should your winnings be in physical cash and you are travelling outside of the EU you are restricted to taking a maximum of €10,000 (or equivalent) in cash out of the country at any one time.

Do I pay tax on Spread Betting?

Spread betting, index betting and binary options are not regulated by the UK Gambling Commission but instead fall under the umbrella of the Financial Conduct Authority (FCA). Despite this you do not need to pay the 18% UK Capital Gains Tax or stamp duty on winnings from Spread Betting. You also do not need to pay tax when betting on fixed odds currency and market fluctuations with bookmakers.

If however you call spread betting your primary source of income, or your day job, you may be liable to pay the tax, effectively you become classed as a trader in this scenario. You would on the other hand be able to write any loses off against tax.

If you trade on the stock markets this is a different story. This form of trading is liable to full capital gains tax and stamp duty.

Do you need to declare winnings to the government?

When Did Online Gambling Start In Uk History

The short answer is no, your winnings are not taxable so you do not need to declare them. Likewise you won't get any rebate against your loses either so no point in declaring them either.

If you have won a lot of money it helps to declare to the treasury on your tax return. There is a specific box where you can enter gambling winnings. You won't be taxed and this could help in any future investigations if you are audited.

It certainly helps to keep records and receipts of your winnings as proof of how you obtained the cash. Often high value purchases require a fraud check and if you have no proof of where your money came from it can land you in hot water. Even if you want to make a large purchase in cash (a car, a house, etc), then you will need to show where the money came from. Yet another reason to only bet with UK licenced reputable, tax paying, bookmakers.

Can I give or gift my gambling winnings away?

Yes, and No. If someone inherits your winnings they will be liable to inheritance tax If your estate is large enough. You can give your money away to people or charities but this may be liable to inheritance tax should you die within 7 years of the gift. You can give a £3000 tax free each year to any one person or you can give £250 away in a gift to anyone you like so long as one person is not gifted more than £250.

Should you give more than this away and you die within 7 years you will be liable for a percentage of the tax, this is known as the tapor rule. If you live longer than this this is now exempt from inheritance tax.

Do I need to pay gambling tax in other countries?

If you win in a country that taxes gambling profits then you will pay the tax at the point of supply, and so you don't need to declare it. If you want to bring winnings back into the UK (or any cash for that matter) you may be restricted on the amount of cash you can bring in, if travelling from outside the EU, to €10,00 Euros (or equivalent currency value).

It is currently not known how Brexit will effect the ability to bring in gambling winnings from other EU country's. For more about betting abroad see our dedicated page.

History of Gambling and Betting Taxes

Gambling and betting was not taxed effectively in the UK for most of history. Unlicensed gambling was causing such a legal and moral problem to the Victorians that the parliament of the time issued the Gaming Act of 1845. This made a wager unenforceable by law and therefore rendered all contracts between bettor and bookie invalid. This didn't stop gambling but it certainly made it into an underworld practice.

In the late 1800's gambling was finally allowed, but only from the government run Totalisator Board (Tote) at select tracks and courses. The tote could conveniently set odds and pump profits back into the Treasury.

Over time some one-off exceptions emerged such as the Football Pools. This was a betting phenomenon and for most people in the UK the only experience of gambling they had. Despite legal battles with the football league and sneering from the government the pools were classed as a low wager competition and was allowed.

By the late 1950's black market betting was rife and the government had neither the resources or the motivation to stop it. In an 'if you can't beat em' join em' approach the government licenced off site betting shops under the 1960 Acts and the betting levy at the same time that remained in place until 2001.

Introduction

Different countries have had gambling in some form or the other, from games based on dice rolls to drawing of lots and also games with some level of skill involved. There are ivory dice from the times of the Egyptian civilization dating back to 1537 BC and there have been mentions of gambling in Cicero’s Divinatoire. Gambling has been prevalent in UK too for quite a while.

The UK is one of those countries where gambling has really developed over the centuries. On this page we take a brief look at the history of gambling in the UK, from the ancient times right up to today.

Gambling in the UK – The Beginnings

Gambling has been around in Britain from before the Romans occupied the country. There was a class distinction, however:

• The rich wagered on horses and games like chess and card games (this was towards the end of the 15^th
• The poor indulged in dice games and later, coin-based games.

There were laws in place that regulated to an extent who could gamble.

Lotteries supported by the State came into existence:

• Around 1569 and then 1585 through a Royal Charter from Queen Elizabeth I.
• There were lotteries authorized by Charles I later in 1627, 1631, and 1689, though it was for a purpose: financing the supply of water in London.
• The first official national lottery was authorized by Parliament in 1694.
• In 1721 legislation was passed banning private lotteries.

Horse racing itself surfaced in Britain in the 16^th century. The 18^th century saw the birth of two of the biggest racing institutions in the UK – the Jockey Club and Tattersalls.

Gambling also flourished in the exclusive gaming houses or clubs that had as its clients wealthy patrons. However, there were persistent resistances to gambling across the UK, and the result was the setting up of the Select Committee on Gaming in 1844 in the House of Lords. This finally resulted in the passing of the first official gambling-related legislation, the Gaming Act, in 1845 followed by the Betting Act of 1853. Together, these two laws banned gambling in all forms for the working class.

Gambling in the UK Today

The 20^th century saw the emergence of a large number of betting shops across the UK and the 1961 Betting and Gaming Act ensured the arrival of the casino. The first official casino in London was the Clermont Club, which opened in 1962. It is, even today, one of London’s most respected clubs.

According to a report, as of March 2016 there are 148 casinos in the UK. Of these Genting UK (Genting Casinos) has the most number of casinos, at 44. At these casinos you get to play a wide variety of slot machines and the usual popular games like:

• Blackjack
• Roulette
• Baccarat
• Craps
• Poker games

The Online Casino in the UK

The arrival of the Internet brought in a new form of gambling in the UK – online gambling. The Gambling Act of 2005 led to the setting up of the UK Gambling Commission, the regulatory body that oversees and regulates all the different forms of gambling in the UK:

• Casinos
• Online casinos
• Arcades
• Bingo
• Betting
• Gaming machines supplies and manufacturers
• Gambling software providers
• Lotteries and raffles (including the National Lottery)

There are a large number of online and now mobile casinos in the UK today. A number of these are based locally in the UK, offering UK players an advantage in terms of familiarity with the games on offer. There are a number of overseas operators as well.

When Did Online Gambling Start In Uk Today

Earlier, overseas operators could use their regular licenses to operate and service clients in the UK. However, all that changed with the passing of the Gambling (Licensing and Advertising) Act in 2014. This new Act, derived out of the Gambling Act of 2005, made it mandatory for all online gambling operators servicing UK players to obtain a license from the UK Gambling Commission. So now overseas operators have, apart from their original license from a licensing jurisdiction, a license from the UKGC as well.

Operators had the choice of paying a fee and obtaining a continuity license till their new licenses were processed and approved by the UKGC. This move led to a few overseas operators shutting down their UK operations. A number of others have, however, stayed on. As of today, more than 150 companies have applied for continuity licenses from the UKGC and a number of companies have started the process of shifting their customers to new UK-based platforms.

Timeline of Gambling in the UK

When Did Online Gambling Start In Uk 2020

The following is a brief timeline of gambling as it has existed and developed in the UK right from the beginning.

When Did Online Gambling Start In Uk 2019

• 1400s: Gambling distinguished by class comes into being; horseracing and other sports for the wealthy and dice games and other smaller types of gambling for the poor.
• 1500s: Horse racing officially surfaces as betting sport for all in the UK.
• 1569: Lotteries officially launched through a Royal Charter from Queen Elizabeth I.
• 1585: Another official lottery launched by Royal Charter.
• 1627 and 1631: Official lottery launched by Charles I.
• 1689: Official lottery launched again to finance London’s water supply.
• 1694: First official national lottery is launched.
• 1700s: Two great racing institutions emerge in the UK:
  • The Jockey Club
  • Tattersalls
• 1721: Legislation passed to ban private lotteries.
• Late 1700s: Emergence of gaming clubs and houses.
• 1844: Select Committee on Gaming set up in the House of Lords.
• 1845: The Gaming Act is passed.
• 1853: The Betting Act is passed
• 1961: The Betting and Gaming Act is passed.
• 1962: London’s first official casino, Clermont Club, is inaugurated.
• 1990s: Online casinos start making an appearance in the UK.
• 1993: The National Lottery Act is passed and the National Lottery Commission is set up to regulate the National Lottery.
• 2005: The Gambling Act is passed and the UK Gambling Commission is set up.
• 2013: The UK Gambling Commission takes over the responsibilities of the National Lottery Commission and begins to regulate the National Lottery.
• May 2014: The Gambling (Licensing and Advertising) Act is passed.
• November 2014: The Gambling (Licensing and Advertising) Act is challenged in court by the Gibraltar Betting and Gaming Association (GBGA).