Do I need to pay Tax on my Crypto Gambling Winnings? A guide

[FinneysTrueVision]

I've never heard of anybody getting in trouble for not paying taxes on their gambling winnings. It is not something that will get you in trouble if you are in good standing with the IRS or whatever similar agency is in your country because you can just keep it a secret and they won't even know that you owe them money.

[Kong Hey Pakboy]

I've never heard of anybody getting in trouble for not paying taxes on their gambling winnings. It is not something that will get you in trouble if you are in good standing with the IRS or whatever similar agency is in your country because you can just keep it a secret and they won't even know that you owe them money.

Yeah you are right, as far as I know gambling winnings are exempted to taxes. Maybe if you are the owner of the gambling house then you need to start worrying about paying taxes and most of the time, there isn't a lot of money to win in the casino to be eligible for something tax related.

[shoreno]

I've never heard of anybody getting in trouble for not paying taxes on their gambling winnings. It is not something that will get you in trouble if you are in good standing with the IRS or whatever similar agency is in your country because you can just keep it a secret and they won't even know that you owe them money.

i visit the blog of the op and i found out that there are really countries where gambling is taxed . maybe you never heard one yet because you are not from those country  .

it will get you in trouble if your from a country where gambling is taxed  and you dont pay your taxed promptly and the penalty for that it is verry serious  so before its too late and before we play a gambling lets be familiarize with the rules of our country first .

[semobo]

Yes, you need to pay taxes for your cryptocurrency gambling winnings too and it depends on the region. For example you are supposed to pay huge amount as tax if you are from US that is why most of the gambling sites don't allow US customers to play there.

And if you don't want to pay and not going to cash out your cryptos into fiat then you can completely avoid taxes too.

[molsewid]

Depending on your countries laws if its included on the scope when it comes to taxation matters knowing that crypto gambling businesses arent always regulated
or even simply talking gambling business as a whole wether those places arent subject to tax but in most case those traditional places do really have big
part when it comes to tax.

Which is definitely true, in fact living in a country where winning in any such gambling site without requiring a winner to pay for a tax is such a previlege of enjoying what you have got from your gambling activity. But at some point, there are other countries which was acquiring for a tax payed by the winner especially if the gambling site or gambling institution was controlled or manage by the government itself.

[kryptqnick]

My country is not listed here, but I think that this question is also related to where and with what currency you're playing, no? For instance, if you're playing with Bitcoin and there are no taxes on cryptos in your country, then it would be difficult to pay taxes for such winnings (in case the winnings are taxed). So there's a difference between fiat and cryptos (potentially), and I also think there can be a difference between rules for physical casinos and for online gambling. So perhaps the topic is more subtle, but I might be wrong.

[Vaskiy]

Taxation is the major source of income for every country. This is the reason why taxation is much important for a government with all forms of businesses. Countries that are against gambling doesn't need to worry about it. In my country even on lucky draw- lottery winning people need to pay 15% as tax and the rest can be enjoyed by the winner. Same as this different countries will have their own gambling taxation policy.

[tabas]

Since when I was a kid, I've already saw those lottery winnings and they have to pay for the taxes. And there's always those notes on the screen about "taxes excluded".
And just as the same with crypto gambling wins, they're also the same as the typical gambling wins just as you have said on your article. Unless you're country tells you're exempted or no need to, then you're good, otherwise, you need to file.

It depends from country to country as the tax laws differ from each other. So if you don't want any trouble, you need to know what is the current regulations in your country. No one can do it for you, so you need to know those specifics so you will not face any issues later on with the government. Better learn it ahead of time rather than fixing your financials at the end.

Yes, I've said that if your country tells you're exempted or not. But knowing if someone can do it for you, actually there are services that can be offered to you.
That in your behalf, they will be the one that shall file it for you and declare. You're still the one that's involved but they're the only one that will work on it if you've got no time doing it.

[Quidat]

Depending on your countries laws if its included on the scope when it comes to taxation matters knowing that crypto gambling businesses arent always regulated
or even simply talking gambling business as a whole wether those places arent subject to tax but in most case those traditional places do really have big
part when it comes to tax.

Which is definitely true, in fact living in a country where winning in any such gambling site without requiring a winner to pay for a tax is such a previlege of enjoying what you have got from your gambling activity. But at some point, there are other countries which was acquiring for a tax payed by the winner especially if the gambling site or gambling institution was controlled or manage by the government itself.

I was bit skeptical or still in doubt about casinos that been owned by government but it does really exist.
Just like this one:
Over 25 land-based casinos are active in Ontario, and these range from privately-owned entities to charitable locations run by the government. Source

So in that case, they would really be charging up themselves with tax too? hehe

[Swopon]

I’m surprised to learn that some countries don’t tax gambling winnings. I may have to see that somewhere more official to believe it. I guess being from the US I’m used to considering everything taxable. Most of the time this isn’t an issue though because gambling houses aren’t in the business of losing money. 

You already used to with the taxation process in each and every sector in your location. But it is not the same in my area too. Here, I am from Bangladesh and I'm not used to with the taxation process as I also pay for many things. But all the sectors are not same here and not imposed the tax by government. So, other countries scenario is almost same or slightly can be changed. So it varies according to the location.

[traderethereum]

If you play on the fiat gambling site, maybe you will need to pay the taxes.
But if you play crypto gambling games, maybe you do not need to pay the taxes because as long as you keep the winning on your wallet, the government will not know about your winning.
I do not know much about paying the taxes for every winning on the gambling games, but I only know about paying the taxes monthly and paying taxes because we have an income. But the taxes are not applied to people who have a minimum income for that country.

[Mauser]

If you play on the fiat gambling site, maybe you will need to pay the taxes.
But if you play crypto gambling games, maybe you do not need to pay the taxes because as long as you keep the winning on your wallet, the government will not know about your winning.
I do not know much about paying the taxes for every winning on the gambling games, but I only know about paying the taxes monthly and paying taxes because we have an income. But the taxes are not applied to people who have a minimum income for that country.

While this is true in some countries, we need to be very careful with tax laws. Sure as long as we are not realising any gains in FIAT currency we should be fine. But once we convert some of our coins into FIAT cash again we need to pay taxes. If we don't declare the winnings then we could bf liable in the future. At the moment it might be hard for the government to track our crypto winnings but we shouldn't raise any suspicions.

[traderethereum]

If you play on the fiat gambling site, maybe you will need to pay the taxes.
But if you play crypto gambling games, maybe you do not need to pay the taxes because as long as you keep the winning on your wallet, the government will not know about your winning.
I do not know much about paying the taxes for every winning on the gambling games, but I only know about paying the taxes monthly and paying taxes because we have an income. But the taxes are not applied to people who have a minimum income for that country.

While this is true in some countries, we need to be very careful with tax laws. Sure as long as we are not realising any gains in FIAT currency we should be fine. But once we convert some of our coins into FIAT cash again we need to pay taxes. If we don't declare the winnings then we could bf liable in the future. At the moment it might be hard for the government to track our crypto winnings but we shouldn't raise any suspicions.

So it is better if we still hold the coin and not converting the coin into fiat in a big amount because that can make the government tracking our bank account.
Maybe if we want to convert from the coin into fiat, we can do it step by step, so the bank will not be suspicious if our account receives the money in a big amount.
We are lucky to have a crypto gambling site because it can help us play gambling without the government knows what we did with our funds.
We still pay the taxes as usual and are not changing, and we can still play gambling using crypto.

[blue Snow]

We are lucky to have a crypto gambling site because it can help us play gambling without the government knows what we did with our funds.
We still pay the taxes as usual and are not changing, and we can still play gambling using crypto.

It could be can tracking by the government if the gambling site required the user for KYC, they had regulation to ask a provider if find suspicious activity.

If using an anonymous wallet and mixer government will be hard to track where the funds come or if want to transfer crypto do not directly from the exchange to the gambling wallet.

[Twinkledoe]

We are lucky to have a crypto gambling site because it can help us play gambling without the government knows what we did with our funds.
We still pay the taxes as usual and are not changing, and we can still play gambling using crypto.

It could be can tracking by the government if the gambling site required the user for KYC, they had regulation to ask a provider if find suspicious activity.

If using an anonymous wallet and mixer government will be hard to track where the funds come or if want to transfer crypto do not directly from the exchange to the gambling wallet.

This is the advantage of playing in casinos that don't require KYC. At least, you are safe that you will not be reported to your government. Unless, you are a high roller, and that usually entails the submission of KYC to the casino. Because normally, crypto casinos will only ask KYC if you are playing high stakes and withdrawing large amount of money. Otherwise, if you are just a small time gambler, better stick to casinos that don't ask for identity verification.

[plr]

A common question that I see asked is "do I need to pay tax on my crypto gambling winnings?".

I decided to write an explainer for anyone in any doubt, feel free to give it a read here:
https://bitedge.com/blog/crypto-gambling-taxes/

Explained within are:

- Which countries tax for crypto gambling winnings
- Which US states are better to gamble as part of a business rather than personally
- How to calculate any capital gains
- Capital gains tax rules in different nations

Let me know any comments on the rules, or any experiences you've had which may benefit myself or others.

Hopefully this make crypto gambling a little bit easier for people!

We don't have that kind of regulation, because Crypto gambling here in our country is not yet tapped by the government for taxes, and there is no study yet by the government they don't even have ideas on how many of our countrymen are involved in gambling, Crypto in our region is just a small community, but Cryptocurrency technology is welcome to our country.

[xenon131]

This is the advantage of playing in casinos that don't require KYC

Agreed,  tax

[conected]

We are lucky to have a crypto gambling site because it can help us play gambling without the government knows what we did with our funds.
We still pay the taxes as usual and are not changing, and we can still play gambling using crypto.

It could be can tracking by the government if the gambling site required the user for KYC, they had regulation to ask a provider if find suspicious activity.

If using an anonymous wallet and mixer government will be hard to track where the funds come or if want to transfer crypto do not directly from the exchange to the gambling wallet.

This is the advantage of playing in casinos that don't require KYC. At least, you are safe that you will not be reported to your government. Unless, you are a high roller, and that usually entails the submission of KYC to the casino. Because normally, crypto casinos will only ask KYC if you are playing high stakes and withdrawing large amount of money. Otherwise, if you are just a small time gambler, better stick to casinos that don't ask for identity verification.

- Usually, identity verification at crypto casinos only applies to those who withdraw too much money because this action is considered unusual and requires someone who owns the confirmation account to avoid future loss and compensation, tax issues have probably been handled by the creators of the casino, the player will not be affected and there is no need to pay taxes. I think this is quite reasonable when most of the time we spend in crypto casinos is just failures, with no money and nothing to withdraw to the bank, paying taxes is impossible.

[panganib999]

This is the advantage of playing in casinos that don't require KYC

Agreed,  tax on winnings at casinos is the matter of personal commitment that is  why "no KYS"  means "no person" behind gaining. There is even better option then online KYS-free platforms for betting on various events and that is p2p betting which is faceless in its nature. For example when betting on sport event  I prefer to deal with ^{Obyte p2p betting bots} and such approach  allows to hide  my identity.

Most of the gamblers doesn't want any KYC's because it is so very hard for them to process it and sometimes they just need the money as soon as possible. And also I think some of the casino players are minors that don't have any ID Card. And it is tru that it is questionable if there is a unusual activity in your account. In my country, crypto doesn't have any taxes even if it is big or small trasactions or earnings. And that's why the government is always not supported and not a friendly-crypto companies. They believe that those earnings have came from some bad cash.

[wxa7115]

A common question that I see asked is "do I need to pay tax on my crypto gambling winnings?".

I decided to write an explainer for anyone in any doubt, feel free to give it a read here:
https://bitedge.com/blog/crypto-gambling-taxes/

Explained within are:

- Which countries tax for crypto gambling winnings
- Which US states are better to gamble as part of a business rather than personally
- How to calculate any capital gains
- Capital gains tax rules in different nations

Let me know any comments on the rules, or any experiences you've had which may benefit myself or others.

Hopefully this make crypto gambling a little bit easier for people!

Most of the time if your winnings are small you do not have to worry about things like taxes but when it comes to big wins that is critical, where I live the taxes can vary wildly from state to state, there are states which do not force you to pay any taxes on your gambling wins which is great but there are other states in which you need to pay up to 30% on taxes and that is very high.

The best way to be completely sure about what you are doing is to consult a tax lawyer or an accountant since you want to pay as little on taxes as possible after getting that lucky.