People teaming up to win a lottery in cryptocurrencies is an interesting idea. It's also great that you are totally legit and regulated. There was once an offer from a forum member for people to team up, buy a bunch of tickets and try to win a big lottery. That person was interested in how the US (it was about a US lottery) will deal with people around the world buying tickets from a friend in crypto in terms of taxes and rewards. Since you are regulated, perhaps you could answer this question. If, say people from 10 countries formed a team, bought tickets for crypto and won, how would the process of giving rewards and paying taxes go?
Depending on the country where we validate the ticket a tax Will be deducted.
Example we hit a €10,000,000 jackpot and validatie the ticket in Spain.
Spain has a 20% tax on winnings above €2,500. So we firstly need to pay 20% taxes on €9.997,500.
So €7,999,500 is left for the syndicate.
Lets say the syndicate has 10 participants. Each participant is allocated €799,950.
Winnings above €100,000 we also offer fiat payouts if wished by the participant.
2 things can happen.
- the participant chooses to be paid in crypto. The €799,950 Will be send anonymously. Participant has to do his research if he needs to pay taxes over This crypto amount.
- participant chooses he wants to get paid in fiat. He Will have to declare the winnings come from lottery. Depending on your location iT is possible you need to pay an extra % of taxes on your winnings in your country.
So summary.
IT is possible that there are 2 times taxes withhold from your winnings depending on the country where the ticket is validated and the country where the participant is living. But iT is also possible no taxes needed to be paid. For example if we validate the winning ticket in Belgium no taxes are charged. If the participant also lives in belgium he also dont have to pay taxes on lottery winnings.