With the summer coming to an end, many sporting leagues are due for a return shortly and that means the start of a new season gambling and playing fantasy sports. Whatever it is you do, from gambling on the Premier League football or playing fantasy sports with the NFL through one of the many providers, we all do it for a mixture of both enjoyment and the chance of winning money.
However, if you are lucky enough to win this season, have you ever thought about if you need to pay tax on your winnings or not? This is something that many people don’t even consider when they games.
Back in 2001, what was known as betting duty at the time was abolished by the government. This was money paid by the customer as tax when they placed a bet, but this is no longer needed. At this point, all forms of gambling became tax free and the winnings from any gambling activities were no longer needed to be declared to HMRC at all. This was a big move that helped punters and many see it as being one of the big reasons why the gambling industry has thrived ever since.
Do I Have to Pay Tax on Fantasy Sports and Gambling Winnings?
The good news for UK players is that the answer to this is no. Any winnings you gain from gambling or playing fantasy sports, regardless of whether it is £1 or £1 million are not eligible for tax, meaning you get to keep the entire amount of money you have won.
Although in the UK, gambling is bigger than fantasy sports, when you look worldwide, there is a huge appetite for fantasy sports, and many people around the world will be gearing up for the start of their seasons. It is expected that over 50 million people will join fantasy NFL leagues this summer, using companies like Fan Duel, Draft Kings and ESPN to create league with family, friends or strangers they have never met.
The original reason for so many people heading to the fantasy sports industry was because bookmakers didn’t offer enough betting opportunities on sports like the NFL to attract punters. That has changed though in recent years, and new bookmakers are really pushing hard in this area, showing that they can offer all the betting markets that a fantasy sports player needs in an attempt to win over that custom from the fantasy gaming sites.
Win Big and Keep All of Your Winnings
The big news for players of both fantasy sports and gambling is that anything you are lucky enough to win during the upcoming season is classed as a gambling win, and not eligible for any tax to be paid on it. This means you can go into the season trying your hardest to be successful in your leagues and when placing your bets, knowing that should a big win come your way, it is all yours.