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

[Ryker1]

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.

Well, perhaps it depends on which country did you live. Since crypto is untaxable, it is also the same because you can increase your anonymity if this is necessary to cover your track and will perhaps unmask your real identity. But perhaps if you live in a country that has fully strict when it comes to the crypto-like country of the USA, there could be a tax. However, you are right, if you will hit the mega jackpot, it is the time you will pay the tax because that is a big amount and you need to declare that you have won on the gambling or if not, you will becomes suspected as a money launderer.

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[judeafante]

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

Even if I want to, our country does not have rules or tax filling form about online gambling, our income tax does not include online gambling yet, I don't want to declare it now, since they are not asking and do not have regulation on it, maybe in the future when they have an entry for gambling winnings, since I play in Crypto type of online gambling our government does not have a regulation yet on taxing people who are involved in Cryptocurrency too.

[Kakmakr]

Do you want to tell me that there are actually countries where you can claim "Capital losses" on the money that you have lost on a casino? In my country you can only claim for your business expenses or rather for a portion of that. I reckon the "Capital losses" are only applicable to professional gamblers.. right? (Professional Poker players or Streamers?)

Also, here we pay Capital Gains or any gains.. no matter how you get. Is the "Crypto gambling taxes" on top of the normal Capital gains taxes (additional tax) or do you only pay one of the two? (Is this a Sin tax, tobacco and Alcohol ) ?

[ReiMomo]

I guess there is a minimum amount that you can able to report your gambling winning in your country, if that is a small amount, I guess don't bother them because they are busy compiling all files of big taxes. That is fine if a small amount, but if those worth billions of dollars, it will I guess good if you claiming casino winnings on your taxes.

Dont tell me if you always won thousands of dollar every day, if not, then, don't bother yourself about the tax, and doesn’t mean that if you consistently win and fail to report your winnings the tax office wouldn’t notice them.

[coin-investor]

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'm playing in an online gambling casino and I'm not paying taxes because my government is not asking me to do pay, and I don't consider gambling as my income, because I lose a lot in gambling I rarely win in gambling, once they implement and included winning in gambling, maybe just then I will think of paying.

[traderethereum]

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.

As crypto users, we choose to use crypto or fiat to gamble, but most of us will still use crypto to gamble because that can make us hide our financial activity in the gambling games.
We have many gambling sites that do not require us to fill KYC, which will help us play gambling safety without the government can track us.
We can also use an anonymous wallet and mixes, as you said, to prevent the tracking.
If somehow we win, we can send the win money to our wallets without anyone knows, and we can only withdraw small money for our daily needs.

[iamsheikhadil]

In my country the crypto thingy is still in grey area, not many laws as simply because policy makers don't even know what crypto really is yet fully let alone putting taxes on its trading or gambling revenues but slowly we are going there, recent developments have shown we are progressing in this crypto sector and soon there will be taxation on crypto tradd revenue and then might be they will come with laws with relevance to gambling. It will be a huge benefit for the government if they can tax on crypto revenues

[skarais]

I'm playing in an online gambling casino and I'm not paying taxes because my government is not asking me to do pay, and I don't consider gambling as my income, because I lose a lot in gambling I rarely win in gambling, once they implement and included winning in gambling, maybe just then I will think of paying.

If gambling is legal in your country, then maybe you are trying to avoid taxes just because you are playing on crypto online site. Of course if gambling is legal, then the government will think about how they make money from the winning of the players and taxes are the choice. I think maybe the government will apply it to online site as well like in the case of licensed exchange.

Gambling in my country is illegal and we may not need to evade taxes. It is an offense for us to gamble offline and online gambling site are an option if we wish to do so. But as long as the government can track the site, they will block it too.

[JohnBitCo]

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

It varies from country to country but in most countries you will get away with the tax because the authorities will never trace you if you gamble online with crypto.
In simple words if you cash out your winnings in local fiat, then you may have to pay tax only on that amount.

[Saisher]

You have to pay when your government ask you to pay or you will face penalty, our country never ask us about paying taxes with our winnings, only our income and I don't consider my winnings in gambling a form of income considering that I loss a lot of money too, if you compare it to my winnings, I hope our government will not implement this.

[MCobian]

Not all countries legalize gambling, so if your country legalizes gambling, of course you must pay taxes on the profits you make. Because there are
rules related to this matter, usually it is included in the income tax. My advice is don't shy away from paying taxes if you don't want to get into trouble
with the law, for the calculation of taxes to be paid all countries have different amounts. Please use the search engine from google to help you further.
Unless your country prohibits gambling, there is no need to pay taxes. Because from the beginning it was prohibited to carry out gambling activities.

[Pamadar]

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

It varies from country to country but in most countries you will get away with the tax because the authorities will never trace you if you gamble online with crypto.
In simple words if you cash out your winnings in local fiat, then you may have to pay tax only on that amount.

The beauty of using crypto into online gambling.

You only need to pay taxes pnce you are cashing out and exchanging your crypto into  fiat, but from crypto gambling house to your
crypto wallet, there are no extra taxes aside from the gas fee that you need to pay from the casino house. It's part of the  transaction
process.

[Oilacris]

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

It varies from country to country but in most countries you will get away with the tax because the authorities will never trace you if you gamble online with crypto.
In simple words if you cash out your winnings in local fiat, then you may have to pay tax only on that amount.

The beauty of using crypto into online gambling.

You only need to pay taxes pnce you are cashing out and exchanging your crypto into  fiat, but from crypto gambling house to your
crypto wallet, there are no extra taxes aside from the gas fee that you need to pay from the casino house. It's part of the  transaction
process.

This is why crypto gambling did really get some big recognition on this part because you wont really be taxed as long you dont really convert it to fiat.

You can still play without worrying if you do get taxed unless if your country is really strict then you would really be needing to declare those earnings that you do had.

We know that every country does have different set of laws or the extent on a specific area and lucky if there are still who are freely able to cherish those free times.

[ethereumhunter]

That will depend on your country's regulations because each country will use a different thing for the gambling business. If your country prohibits people from playing gambling, but you are still playing gambling using VPN, I do not think you need to pay the taxes because your government will not know that you are playing gambling unless you withdraw the money in a large amount. If so, that can make your bank suspicious and investigate your account, and they will ask you where the money comes from.

[Cling18]

Uhh, I'm not sure that question is asked 'that much' here to  be discussed in its own right. Still, if you're the real BitEdge then thanks for it anyway. To answer the general questions of the people when it comes to taxation and gambling, you have to understand that it depends on case per case, usually country of operation being the biggest factor and licenses as well.

Some countries don't regulate the taxation in a gambling platform that well so it always depends on your location.

We all know that some countries are prohibiting all forms of gambling, online or physical, fiat or crypto, it doesn't matter as long as there will be no gambling happens.

So it is much better if you will use a licensed gambling platform and it is okay even if you need to pay for taxes with your winnings so that you can continue playing with it.

Taxes are normal and it is needed for the country's economic situation.

Lucky are those countries that don't regulate taxation. In our country, even a small lottery is being taxed. Our government is always looking for ways to collect tax and they will surely let gambling escape being taxed. They legalize gambling for the benefit of getting taxes.

[dimonstration]

That will depend on your country's regulations because each country will use a different thing for the gambling business. If your country prohibits people from playing gambling, but you are still playing gambling using VPN, I do not think you need to pay the taxes because your government will not know that you are playing gambling unless you withdraw the money in a large amount. If so, that can make your bank suspicious and investigate your account, and they will ask you where the money comes from.

It's quite hard to withdraw money from banks when it comes in gambling profit sometimes even if it comes in trading, so make sure to only withdraw minimal amount especially if the country is not yet aware that crypto exist since even banks don't know what crypto is and become too suspicious whenever your bank account received suddenly money. The taxes will follow once the money is converted into fiat so it's fine even there's no tax in winnings.

[yazher]

Indeed. We do not want to make our bank suspicious and ask us about the money, so we need to prevent withdrawing in a large amount. If you really need big money, maybe you can search for help from the local seller, so they will send the money to your bank account, which can avoid the bank's suspicion. Even if we need to pay the taxes, I think the taxes will apply to us at the end of the month and not every time we make a transaction.

I hate it when the Banks interrogated me about my own money, they will ask you questions that already been asked before just to make sure that you're telling them the truth about your money source. Banks are tricky that's why if you have a huge amount of money in your wallet, you should know how to withdraw them separately once you withdraw them at once things will not look good especially when you don't have any documents to show them.

[Vishnu.Reang]

Here in India we are facing an even bigger issue. Gambling (both physical and online versions) are not legal here. So if someone wins a big amount, that can't be credited directly to the bank account. Some of my friends have faced the issue. They had to spent a lot of time and money in consulting tax experts and finally resolved the issue by showing the amount as gift received from non-family member. Still, this method is not 100% safe, as the tax authority can ask for additional clarification at any point.

[jostorres]

I guess there is a minimum amount that you can able to report your gambling winning in your country, if that is a small amount, I guess don't bother them because they are busy compiling all files of big taxes. That is fine if a small amount, but if those worth billions of dollars, it will I guess good if you claiming casino winnings on your taxes.

If you are paying taxes on your winnings then either small or big, comply with the laws because it makes no sense saving small taxes and getting into trouble later despite paying the bigger taxes when winning big. I don't think anyone has ever won billions of dollars though from any crypto casino, but yeah I get the point.

If you actually win such a huge amount you will be most likely asked for KYC and then you are obviously forced to pay taxes because the casino might report your winnings to the legal departments.

[Fundamentals Of]

I guess there is a minimum amount that you can able to report your gambling winning in your country, if that is a small amount, I guess don't bother them because they are busy compiling all files of big taxes. That is fine if a small amount, but if those worth billions of dollars, it will I guess good if you claiming casino winnings on your taxes.

If you are paying taxes on your winnings then either small or big, comply with the laws because it makes no sense saving small taxes and getting into trouble later despite paying the bigger taxes when winning big. I don't think anyone has ever won billions of dollars though from any crypto casino, but yeah I get the point.

If you actually win such a huge amount you will be most likely asked for KYC and then you are obviously forced to pay taxes because the casino might report your winnings to the legal departments.

This is the best option. If you are liable to pay taxes, just pay it. Pay your due properly and promptly and you will not be worrying about it anytime. If you will try to get away from your tax responsibilities, you are to blame if the time will come when the IRS or your country's tax department will come after you, prosecute you, or even put you to jail. That is not worth it.