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

[Smartprofit]

There's no issue with taxing players in our country because our government do not care or not aware of the numbers of people playing in online gambling casinos, so we have no form asking us to pay taxes, lucky for me I don't need to bother paying even if I want to, I prefer paying taxes coming from profit or my income but I don't consider gambling as profit-driven as I'm also losing a lot of money also.

National legislation in this area may be country-specific.  

In some countries, gambling organizers act as tax agents, withholding and remitting taxes on player's income to the budget.  In some countries, the player must independently declare their income and file a special tax return with the tax office.  There is also a specificity associated with the turnover of cryptocurrencies.  

Different countries have different positions regarding the status of cryptocurrencies.  

Some believe that cryptocurrency is property, some that cryptocurrencies are financial assets, and some classify cryptocurrency as a means of payment.

In some countries, cryptocurrencies are prohibited.

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[Renampun]

I guess no matter where you are when you win gambling you should pay a little win for taxes...
but of course the government must impose a winnings tax limit, for example only those who win over $ 5k are required to pay taxes, winnings under $ 5k don't have to pay taxes.

[hahay]

I guess no matter where you are when you win gambling you should pay a little win for taxes...
but of course the government must impose a winnings tax limit, for example only those who win over $ 5k are required to pay taxes, winnings under $ 5k don't have to pay taxes.

Yes that's fine but the problem is whether or not gambling itself is legal, because we know that not all countries legalize gambling and with that, how they will comply with taxes. So I am not sure about winning in gambling that should be set aside to pay winnings tax, and this is the crypto world which I think regulations like this in crypto gambling are still difficult to implement but if it is a site that is registered as legal, then tax cuts can be applied in the system.

[JohnBitCo]

I guess no matter where you are when you win gambling you should pay a little win for taxes...
but of course the government must impose a winnings tax limit, for example only those who win over $ 5k are required to pay taxes, winnings under $ 5k don't have to pay taxes.

You need to be honest in order for you to pay taxes on all your gambling winnings.  Most people who play gambling using cryptocurrencies online do not give any taxes because they are not being tracked by government authority.  I know many people who used crypto to play gamble so that their money cant be traced.  I wish people could be more honest and would be more willing to pay the taxes but unfortunately the truth is otherwise.

[tabas]

There are countries that addresses that every gain is taxable by law.

What countries? I don't think there's a country that imposed "every gain" is taxable. What more for low earners? Correct me on this if wrong.

Crypto winnings are unregulated. There shouldn't be any tax. The tax part will be on our cashout where our winnings will be sent first to a crypto exchanger then have it convert to cash. That exchange is regulated so they are the ones paying tax. The reason why we see their rates are low or having a crazy cashout to fiat fees.

As others said before you cannot say that per se. Taxes are treated very different across jurisdictions for any sort of tax, including taxes on gambling. When crypto is involved there might even be several taxes as it may be deemed a "gain" realized on asset appreciation as well once you place cryptocurrencies to bet on something, then if you win it might trigger the gambling tax.

Not an easy topic I guarantee guys! 

I agree to you. If somebody earns in crypto, that's a gain, if somebody wins in gambling, that's a gain and both are taxable. It's not really an easy topic.
But to make it more understand, one should consult a taxing officer for confusing terms in your country because it varies from country to country.

[germsite]

There are countries that addresses that every gain is taxable by law.

What countries? I don't think there's a country that imposed "every gain" is taxable. What more for low earners? Correct me on this if wrong.

Crypto winnings are unregulated. There shouldn't be any tax. The tax part will be on our cashout where our winnings will be sent first to a crypto exchanger then have it convert to cash. That exchange is regulated so they are the ones paying tax. The reason why we see their rates are low or having a crazy cashout to fiat fees.

As others said before you cannot say that per se. Taxes are treated very different across jurisdictions for any sort of tax, including taxes on gambling. When crypto is involved there might even be several taxes as it may be deemed a "gain" realized on asset appreciation as well once you place cryptocurrencies to bet on something, then if you win it might trigger the gambling tax.

Not an easy topic I guarantee guys! 

Very very different from jurisdiction to jurisdiction! Even in Europe there are huge differences from country to country. There are even countries where there are differences within the countries because of their federal structure.

The only way is to attend a good tax advisor. Emphasis is put on GOOD tax advisor. They are not all the same and only few of them are interested in gambling and finding good solutions for the tax payer. Best investment to get a good tax advisor is TIME and MONEY. Don't just pick the first one around the corner.

[fullhdpixel]

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

I never raised that question. Because, I am familiar with all taxation rules of my country. Basically I never need to pay any tax until I do not cash out of casino. Unfortunately I never got chances to stay in profits to get into a situation of cashing out and moreover even I will be cashing out and if that funds hit my bank account then I need to pay tax if my total income on that particular financial year qualify to limit of taxation slabs. Even I am playing with a regulated casino, I will never opt to cash out to my bank accounts as I always need some balance in my gambling account so that I may gamble instantly.

[Shasha80]

Because in my country gambling is prohibited, so I play using a VPN and I don't have to pay taxes for the winnings I get. So the conclusion depends
on the existing regulations in our respective countries, and usually rarely impose taxes for the winnings that we get. Because the government also
knows that there are more gamblers who lose than win. So taxes are applied to casinos usually.

[paxmao]

In Spain there seems to be quite a bit of an exception for gaming income, particularly from "La Loteria". It is frequently used as a method to avoid taxes:  Someone will buy a winning ticket of, let´s say, 1 million and will pay for it 1.3 million. Obviously that means that the money originally was undeclared and now is fully legal and not subject to taxes. There are cases in which some people have claimed to have won the lottery 6 times in a year 

[Lorence.xD]

Because in my country gambling is prohibited, so I play using a VPN and I don't have to pay taxes for the winnings I get. So the conclusion depends
on the existing regulations in our respective countries, and usually rarely impose taxes for the winnings that we get. Because the government also
knows that there are more gamblers who lose than win. So taxes are applied to casinos usually.

Hopefully you won't get any problem in the long term because sometimes hiding can bite you back. In my country, I don't know much about taxes on winnings since back then I won my bets and games with no deductions except for tips so I don't have any experience with taxes. Check your tax laws to see if gambling is a taxed one.

[Shasha80]

Because in my country gambling is prohibited, so I play using a VPN and I don't have to pay taxes for the winnings I get. So the conclusion depends
on the existing regulations in our respective countries, and usually rarely impose taxes for the winnings that we get. Because the government also
knows that there are more gamblers who lose than win. So taxes are applied to casinos usually.

Hopefully you won't get any problem in the long term because sometimes hiding can bite you back. In my country, I don't know much about taxes on winnings since beck then I won my bets and games with no deductions except for tips so I don't have any experience with taxes. Check your tax laws to see if gambling is a taxed one.

Thank you my friend for reminding me, because like you said it was quite risky that I did. I also hope that there will be no problems in the future,
therefore I am not too big to deposit on gambling platforms. Then I will also make an immediate withdrawal if I win playing gambling. Just in case
I get into trouble later on, will not suffer too big a loss.

[dunfida]

Because in my country gambling is prohibited, so I play using a VPN and I don't have to pay taxes for the winnings I get. So the conclusion depends
on the existing regulations in our respective countries, and usually rarely impose taxes for the winnings that we get. Because the government also
knows that there are more gamblers who lose than win. So taxes are applied to casinos usually.

Hopefully you won't get any problem in the long term because sometimes hiding can bite you back. In my country, I don't know much about taxes on winnings since beck then I won my bets and games with no deductions except for tips so I don't have any experience with taxes. Check your tax laws to see if gambling is a taxed one.

Thank you my friend for reminding me, because like you said it was quite risky that I did. I also hope that there will be no problems in the future,
therefore I am not too big to deposit on gambling platforms. Then I will also make an immediate withdrawal if I win playing gambling. Just in case
I get into trouble later on, will not suffer too big a loss.

Most of the time, gambling winnings arent taxed and you can anytime pull off those funds and can be converted to fiat money if you wanted too but it will vary if you do
win big time then that would really be surely raises up some flag if the bank will notice it out.It might not indirectly talking about tax but for sure
there would be questions asked about on whats the source of those funds.

[Shasha80]

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Most of the time, gambling winnings arent taxed and you can anytime pull off those funds and can be converted to fiat money if you wanted too but it will vary if you do
win big time then that would really be surely raises up some flag if the bank will notice it out.It might not indirectly talking about tax but for sure
there would be questions asked about on whats the source of those funds.

What you are saying makes perfect sense, if I am lucky to win a big. When going to cashout to a bank account, there will definitely be a question of
sources of income. I didn't think that far before, because until now I have never won in large numbers when playing gambling . If caught
the source of income from gambling, my funds can be frozen or rejected . Maybe I will cashout gradually, so as not to be suspected. Or do you have
any other good ideas?

[Lorence.xD]

~

Thank you my friend for reminding me, because like you said it was quite risky that I did. I also hope that there will be no problems in the future,
therefore I am not too big to deposit on gambling platforms. Then I will also make an immediate withdrawal if I win playing gambling. Just in case
I get into trouble later on, will not suffer too big a loss.

I would bet that you won't get in trouble for gambling and not paying taxes, I mean if I didn't get in trouble then you probably won't. Or you could not gamble anymore, you don't have to worry about if there is tax or nah and you will be more happier.

[Fundamentals Of]

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Thank you my friend for reminding me, because like you said it was quite risky that I did. I also hope that there will be no problems in the future,
therefore I am not too big to deposit on gambling platforms. Then I will also make an immediate withdrawal if I win playing gambling. Just in case
I get into trouble later on, will not suffer too big a loss.

I would bet that you won't get in trouble for gambling and not paying taxes, I mean if I didn't get in trouble then you probably won't. Or you could not gamble anymore, you don't have to worry about if there is tax or nah and you will be more happier.

It depends on what country you belong to. In other countries such as the US, the tax laws are implemented so strictly that evading tax should be avoided if you don't want the IRS come knocking at your door at the most unexpected time. You better be honest and settle all your tax responsibilities. It is not advisable to court risk and trouble for an amount not so big.

Some countries on the other hand are so poor in implementing tax laws and collection. If you belong to one of them you could get away from it.

[Lorence.xD]

~

It depends on what country you belong to. In other countries such as the US, the tax laws are implemented so strictly that evading tax should be avoided if you don't want the IRS come knocking at your door at the most unexpected time. You better be honest and settle all your tax responsibilities. It is not advisable to court risk and trouble for an amount not so big.

Some countries on the other hand are so poor in implementing tax laws and collection. If you belong to one of them you could get away from it.

Well, you might've misunderstood what I said, the not paying taxes part was on the gambling wins and not the evading taxes at all. Poor countries have a clever way of implementing taxes, they use lottery and most of the products that we buy already comes with a tax so I guess I can't really avoid taxes.

[michellee]

What you are saying makes perfect sense, if I am lucky to win a big. When going to cashout to a bank account, there will definitely be a question of
sources of income. I didn't think that far before, because until now I have never won in large numbers when playing gambling . If caught
the source of income from gambling, my funds can be frozen or rejected . Maybe I will cashout gradually, so as not to be suspected. Or do you have
any other good ideas?

Maybe you can send the win money to the other wallets, such as private wallets or wallets on the exchanges, and you can start to withdraw gradually. At least, that is what I did so far. I do not withdraw thousands of dollars at once, and if I want to withdraw thousands of dollars, I will divide it into two or three parts and withdraw it three times. That will not sound the bank's alarms because that will look like a normal transaction.

[germsite]

What you are saying makes perfect sense, if I am lucky to win a big. When going to cashout to a bank account, there will definitely be a question of
sources of income. I didn't think that far before, because until now I have never won in large numbers when playing gambling . If caught
the source of income from gambling, my funds can be frozen or rejected . Maybe I will cashout gradually, so as not to be suspected. Or do you have
any other good ideas?

Maybe you can send the win money to the other wallets, such as private wallets or wallets on the exchanges, and you can start to withdraw gradually. At least, that is what I did so far. I do not withdraw thousands of dollars at once, and if I want to withdraw thousands of dollars, I will divide it into two or three parts and withdraw it three times. That will not sound the bank's alarms because that will look like a normal transaction.

I wouldn't rely on that if I were you. At some point you want to cash out the money and financial authorities may scrutinize your account even in the future. What do you answer them if they ask you where the money comes from? Even if it's from another person because you sold from an exchange, they could ask you how you are related to that person.

You are playing a dangerous game my friend!

[Fundamentals Of]

~

It depends on what country you belong to. In other countries such as the US, the tax laws are implemented so strictly that evading tax should be avoided if you don't want the IRS come knocking at your door at the most unexpected time. You better be honest and settle all your tax responsibilities. It is not advisable to court risk and trouble for an amount not so big.

Some countries on the other hand are so poor in implementing tax laws and collection. If you belong to one of them you could get away from it.

Well, you might've misunderstood what I said, the not paying taxes part was on the gambling wins and not the evading taxes at all. Poor countries have a clever way of implementing taxes, they use lottery and most of the products that we buy already comes with a tax so I guess I can't really avoid taxes.

Gambling winnings are considered income, therefore they are taxable. Except when the gambling winning is declared tax-free, which is seldom the case, all else shall be declared on the tax return. If you have made money by gambling, you are obliged to report it and pay your tax dues. Failing to do so even if you are aware of it is tax evasion.

It all depends on different countries' tax laws though.

[wxa7115]

There are countries that addresses that every gain is taxable by law.

What countries? I don't think there's a country that imposed "every gain" is taxable. What more for low earners? Correct me on this if wrong.

Crypto winnings are unregulated. There shouldn't be any tax. The tax part will be on our cashout where our winnings will be sent first to a crypto exchanger then have it convert to cash. That exchange is regulated so they are the ones paying tax. The reason why we see their rates are low or having a crazy cashout to fiat fees.

I find this to be doubtful, there is no specific regulation for crytpocurrencies in many countries around the world but this does not necessarily means those wins are exempted, gambling taxes are for the most part very well regulated so if you happen to live in a jurisdiction in which you do not have to pay taxes on those wins then that is great.

But if that is not the case then you should pay your taxes, there is no point in getting in trouble with the authorities on your country for something that you are doing just to get some fun.