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

[imstillthebest]

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.

banned gambling is worst than allowed gambling but you can get taxed because you can choose to pay tax and play gambling . its risky playing gambling if if its not legal but if its not legal why will your friends got charge by a tax ? smells fishy huh .
where would the amount go if not in banks , was it in a crypto wallets but why would they find out when crypto transactions are anonymous and it was thier advantage if the money wont go in a bank because bank will question you and will charge you big

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[wxa7115]

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.

This is definitely an issue, most governments still ignore bitcoin which means that even a citizen that wants to pay his taxes for the most part has no way to do it, it is better to not bring attention to yourself by asking how to do it especially if the amount is small.

But in the case the profits you have had are significant then it is time to consult with a lawyer about how to pay them because even if cryptocurrencies are not specifically stated in the tax code there could still be ways in which you could pay the taxes you owe to the government.

[mindrust]

If you inform the government about your winnings you'll probably always have to pay taxes.

Why bother with it if they cannot find out about it unless you tell them? (I am assuming that you are not using Coinbase wallet because these mf'ers would probably report your suspicious outgoing tx's to the IRS)

[ReiMomo]

If you inform the government about your winnings you'll probably always have to pay taxes.

This will depend on which country they live in, I guess the most strict countries that have also very strict on implementing to pay tax is in the US.
But if you're using cryptocurrency and not using the custodial wallet, that will I guess fine but if so, it is better to file and report your tax claim.

However, that is not mandatory or traceable if you know how it works. You can completely avoid taxes if you want because the government nothing have to do with the cryptocurrency since isn't regulated. So I guess, that's not mandatory at all and you nothing to worry about.

[goinmerry]

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

[milewilda]

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

Correct. This would matter always on the rules or laws that had been set and also varying on the situation because as mentioned about regulated company where those winning tax had already been paid
which simply shows that there are exclusions just because it had been already done by the operator or handler of such service neither if its talking about gambling or any other out there.
Also, why you would really be needing to declare and go to the government and do tell that you do need to pay up tax just because you do win in crypto.It would really be
just ending up into their own pockets.

[Rengga Jati]

You wrote that?

On the page it says the Author is "BitEdge" - is that you?  Welcome to the Forum.

(Did you know there's already a user here call "BitEdge" who's profile has links to that site already?   

OP, can you explain this?
Or you are part of the team and you are the content writer of the website?
If yes, at least you need to link your site and gives the link in your profile. But you don't do it.
So, I really doubt that it is you.

Well, about tax, in my country itself, gambling is something illegal and of course, there will be no tax for it. Sometimes, we also feel difficult to withdraw the rewards from gambling sites into our local exchanges. Sometimes, it needs more time to the exchange to process and also investigate the transaction.

[tabas]

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.

And there's also another ban for cryptocurrencies. This means that two things, gambling, and cryptos are banned there.

Still, this method is not 100% safe, as the tax authority can ask for additional clarification at any point.

That's a suspicious reason if it's going to be a gift from someone. Tax staff would really suspect and find it odd if you say so.

[Timelord2067]

OP, can you explain this?
Or you are part of the team and you are the content writer of the website?
If yes, at least you need to link your site and gives the link in your profile. But you don't do it.
So, I really doubt that it is you.

The OP hasn't been online for a week now (three days after this thread was created) - I really have my doubts that the OP is who they say they are (they probably started the thread in the hopes of gaining some merits then farming the merits on to their main account)

[wxa7115]

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

[chaser15]

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Big or not, it depends on the law per country.

For example, in a lottery (fiat), there are countries that charge tax when someone hit the jackpot. Recently if I'm not mistaken, maybe last January or February, there is a thread here that someone won a big jackpot on the lottery but the winner is charged with a tax. That was a usual regulation. And here in our country, lottery winners are tax-free regardless of how much they won.

Playing in a crypto-gambling site, there is no worry that we will pay tax because almost all gambling sites related to crypto aren't under the jurisdiction of any countries. The worst-case scenario however is, if that country totally bans gambling in their country whether physical or online, not just tax but the user involve will face some charges accordance with their law.

[wxa7115]

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Big or not, it depends on the law per country.

For example, in a lottery (fiat), there are countries that charge tax when someone hit the jackpot. Recently if I'm not mistaken, maybe last January or February, there is a thread here that someone won a big jackpot on the lottery but the winner is charged with a tax. That was a usual regulation. And here in our country, lottery winners are tax-free regardless of how much they won.

Playing in a crypto-gambling site, there is no worry that we will pay tax because almost all gambling sites related to crypto aren't under the jurisdiction of any countries. The worst-case scenario however is, if that country totally bans gambling in their country whether physical or online, not just tax but the user involve will face some charges accordance with their law.

The location of the casino itself is completely irrelevant when it comes to paying your taxes, what matters is where are you located and what is your citizenship, if the country in which you are located currently does not charge any tax on your gambling winnings then you are in good luck but as far as I know you still need to declare that you got those winnings.

But if the country in which you live actually charges taxes over your gambling income then you have no other choice but to declare those winnings and pay those taxes, and if those winnings were in a cryptocurrency casino this can be even more complex because you may end up having to pay capital gains taxes as well.

[Hamphser]

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Hard to believe on which a country doesnt really have any tax because we know that when it comes to development and progress then this tax plays a vital role
which means to believe that citizens wont really be needing to pay up something.

Back on topic about paying up tax with crypto gambling winnings then for sure this will basically focused if those funds had been converted to fiat.

Ive seen that most people doesnt have a problem with that because crypto isnt still regulated into their places.Therefore, they are still on the safe side.

[Stedsm]

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

The problem isn't about doing like that small job and showing it that way, but it's like when it's not even allowed in your country (illegal let's say) but you still do it, they'll definitely get you and make you either pay a hefty sum to save yourselves from their trap or get trapped. It's about how you manage to take your money out of it.

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Doesn't really matter as even if the name doesn't flash anywhere, the gambling companies that abide by a state's rules are definitely going to give the details of all the trades/deals/bets they go through. So you'll be caught there. If you try hiding it with crypto, then too you'll eventually need to pay taxes on your capital gains through crypto.

[wxa7115]

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Hard to believe on which a country doesnt really have any tax because we know that when it comes to development and progress then this tax plays a vital role
which means to believe that citizens wont really be needing to pay up something.

Back on topic about paying up tax with crypto gambling winnings then for sure this will basically focused if those funds had been converted to fiat.

Ive seen that most people doesnt have a problem with that because crypto isnt still regulated into their places.Therefore, they are still on the safe side.

All countries have taxes in one way or another, but the kind of taxes you need to pay vary from country to country, there are some countries which have taxes on your gambling earnings and you will need to pay them.

But there are also countries in which this is not the case and you are free to keep your gambling profits and do whatever you want with them, and there are countries like where I live in which the tax laws vary from state to state and there are places where you do not need to pay taxes and there are other states in which you need to do it.

[DoublerHunter]

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

^ Most of the best gambling platforms would actually tax you the onset of claiming your prize. So you don’t need to worry about it. But some don’t. Probably, if you have your gains higher than the considered bracket, that’s the only time you will get taxed. I just hope that there is a way to hide your winnings. But no worries about it, being taxed with gains is not a big thing. Just comply and play your thing. Taxation can also help you soon anyway. You just had to master the art of cash flow and it won’t be a butt hurting situation for you. And also, I am familiar with your name.
Is it really you? How can we tell? We are just concerned because we respect you (if you are genuinely you, though)

[ReiMomo]

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

^ Most of the best gambling platforms would actually tax you the onset of claiming your prize.

I used to hate taxes as it gets a big chunk of your profit. Like why?
Especially when you worked hard for it, but now I realized how rewarding paying tax is. I was able to access finance by providing them proof of my taxes, seriously.

It also applies to gambling, but I wouldn’t recommend gamblers to access finance to gamble. You’ll just add fire to the risks you are taking. And we should just enjoy gambling without being serious. It would take us to a different level of despair if we did. Going back, when I was gambling, the platform automatically taxes me if I get big wins. But most of the time it’s nontaxable since I only place small bets.

[pilosopotasyo]

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

Our government have no rules on our gambling winnings, they are not asking it, it's up to the individual if they want to pay or not, I'm not a big gambler and I always lose and seldom wins I don't think that it's ok to pay something that you earn and you could or will lose later, it's when I make a profit that I am willing to pay my taxes.

[michellee]

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

Our government have no rules on our gambling winnings, they are not asking it, it's up to the individual if they want to pay or not, I'm not a big gambler and I always lose and seldom wins I don't think that it's ok to pay something that you earn and you could or will lose later, it's when I make a profit that I am willing to pay my taxes.

That is good news because if a gambler in your country wins, they can free not pay the tax. But how about the monthly tax? Did they need to pay additional taxes that related to their winning in gambling?

But out of that, the gambler can enjoy winning without thinking about the taxes and celebrating it with their family or friends.

[dunfida]

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

Our government have no rules on our gambling winnings, they are not asking it, it's up to the individual if they want to pay or not, I'm not a big gambler and I always lose and seldom wins I don't think that it's ok to pay something that you earn and you could or will lose later, it's when I make a profit that I am willing to pay my taxes.

That is good news because if a gambler in your country wins, they can free not pay the tax. But how about the monthly tax? Did they need to pay additional taxes that related to their winning in gambling?

But out of that, the gambler can enjoy winning without thinking about the taxes and celebrating it with their family or friends.

Something that you do earn aside from your own business or even with your own work then i dont see that they would really be including or make it mandatory when
it comes to tax and its up to someone if they would really be that honest on paying up tax even if they arent required to do so but i doubt that majority
will just really ignore but if its mandated then you wont really have any options but to deal with it.