Private bets may not specifically be as simple as just entering into a wager with someone you know. What about those people who bet huge amounts in these situations, though? For example, if someone bet £10,000 that they could run the London Marathon in a quicker timeframe than their friend, and the friend accepted the bet for the same amount, how is this done? And what’s more, how do you go about declaring an income of £20,000 from this type of situation? If HMRC wanted to know where that £20,000 had come from, what would you say to them with regard to it? If you classed this as a gift, for example, you would potentially be liable to pay tax on it. Legal or not it is not something the tax man or anyone else is going to concern themselves with too much. In fact, this type of wagering is the basis of gambling today and goes back thousands of years in history, long before licensed gambling existed. And that’s a simple private bet in action. Whichever team wins, the total of £40 is taken away by that person. The other person takes that wager and backs his team for £20.

Let’s say that one person suggests placing a £20 bet on their local Sunday league football match. In general though, these wagers are usually for small amounts. Legal or not, the normal outcome is that one person wins the whole pot and the other loses. The wager is accepted between both parties and when the outcome occurs, the winner takes the money. It’s not an uncommon pastime for friends and acquaintances to have a bit of fun by betting against each other. And this kind of activity takes place all the time. You and a friend could have a little wager about the outcome of an event, and this would be deemed as a private bet. However, what is the case when it comes to placing private bets – wagers with your mates, a rival or bets with someone else generally? And therefore, they are legal actions under UK law. These are all done through official companies providing such services (in most instances). It’s one thing to place a bet with a licensed sportsbook or betting shop.

Placing a bet online