How is gambling taxed?

[Oshosondy]

I have idea about how cryptocurrencies are taxed by the governments, but I just want to be sure if it is the same as how gamblers are taxed. Normally, the gambling industry will never go broke and they are growing daily and able to pay the tax imposed on them by the government, but what about gamblers. In crypto, capital losses are not taxied, is this applicable to gamblers too?

I am from a country gambling is not taxed which makes me not to know about the taxing, assuming if I have lose $500, and the gambling tax is 10%. If later I used $50 to win $5050, which means my gain is $5000, while the 10% tax is $500 from the $5000 gain. Will I be taxed, or will it be used as the capital loss just like in crypto?

[Kittygalore]

I think it depends on the country and how they tax businesses, gambling has a different kind of taxing in my country compared to a normal business. Also, if you are winning I think that there's a minimum amount of money that isn't taxed in any way, say your country don't tax up to 10k USD then probably you won't have to worry about taxation.

[Ucy]

Would it be proper to tax gamblers, particularly  people who take big risk in betting? I would have no problem taxing responsible bettors, but gambler... I really don't think so.
Government should discourage people from gambling rather than taxing it. Doesn't sound responsible to tax people who gamble(or take big risk with their money).  It's more like taxing cigarettes or even junk foods, and that seems like society is benefitting at the expense of others.

It OK to tax Responsible Bettors though.

[Zilon]

Not all countries tax gamblers and a whole lot don't have a central regulatory body that accesses what goes on within the gambling sector. For developed countries with mordernised technology gambling is been taxed based on gains and on the basis of been a professional gambler or having gambling as a hubby. I think no government would tax it's citizens based on losses I cured

[Taskford]

I have idea about how cryptocurrencies are taxed by the governments, but I just want to be sure if it is the same as how gamblers are taxed. Normally, the gambling industry will never go broke and they are growing daily and able to pay the tax imposed on them by the government, but what about gamblers. In crypto, capital losses are not taxied, is this applicable to gamblers too?

I am from a country gambling is not taxed which makes me not to know about the taxing, assuming if I have lose $500, and the gambling tax is 10%. If later I used $50 to win $5050, which means my gain is $5000, while the 10% tax is $500 from the $5000 gain. Will I be taxed, or will it be used as the capital loss just like in crypto?

I also don't know how casino been taxed by the government in some parts of the world but this article gives us little hint about how tax executed on their platform https://www.casino.org/blog/comparing-gambling-taxes-around-the-world/

Also the only one can clearly answer this is the casino owners but I'm sure they are silent about this topic and doesn't want to disclose the figures on how much they pay.

[Oshosondy]

...I would have no problem taxing responsible bettors, but gambler... I really don't think so.

It OK to tax Responsible Bettors though.

What do you understand as bettors? Gamblers are bettors, the two are synonyms.

Also no government will encourage gambling, it is gambling companies that do advertise it while government are gaining from it through taxing which will not make them discourage it, but they are not encouraging it.

What I just see most about this is that government should only tax the gambling companies not the gamblers. Or the gamblers capital losses should first be deducted from the gain and should not count as part of the taxing.

[BTCLiz]

In Germany there will come a new law making many online-gambling-providers legal in Germany. Also included there is a new tax. As far as I am informed a tax of 7% is claimed by the authority from every bet you make e.g. in a poker cash game. This would be the end for many providers especially poker.

[peter0425]

I have idea about how cryptocurrencies are taxed by the governments, but I just want to be sure if it is the same as how gamblers are taxed. Normally, the gambling industry will never go broke and they are growing daily and able to pay the tax imposed on them by the government, but what about gamblers. In crypto, capital losses are not taxied, is this applicable to gamblers too?

I am from a country gambling is not taxed which makes me not to know about the taxing, assuming if I have lose $500, and the gambling tax is 10%. If later I used $50 to win $5050, which means my gain is $5000, while the 10% tax is $500 from the $5000 gain. Will I be taxed, or will it be used as the capital loss just like in crypto?

Best to check this thread mate

https://bitcointalk.org/index.php?topic=5343885.0

this tackles about gambling taxation in the future.

In Germany there will come a new law making many online-gambling-providers legal in Germany. Also included there is a new tax. As far as I am informed a tax of 7% is claimed by the authority from every bet you make e.g. in a poker cash game. This would be the end for many providers especially poker.

i believe that OP is talking not only about online gambling but the whole like offline also.

[Slow death]

in my country if i'm not wrong the government charges 17% for offline gambling and for online gambling. when I make a bet and win I get 17% deducted... Is a very high value in my opinion since I don't even see anything being developed in my country, to make matters worse Is that my country's government charges a very high fine in case of any disrespect the casinos do. strange Is that they still haven't started charging fees for exchanges and I'm wondering how they charge fees for exchanges? I know it's Off-topic but I have this curiosity

i believe that OP is talking not only about online gambling but the whole like offline also.

that's what he wants to know, maybe OP enters offline casinos

[AicecreaME]

In our country, online gambling sabong (cock fighting) is considered to be taxed in the future because of its great revenue, instead of being shut down by the Philippine Government, they decided to put a tax on it instead, however, there's not specific date yet about this, so for now, online gambling (using Philippine Peso) is not yet being regulated as well as online gambling sites that uses cryptocurrency.

[michellee]

It will depend on the government as if you live in the country, prohibit gambling, and play online gambling, no matter whether you lose or win, you will not get the tax. Maybe the losing gambler will not get tax because they already lose their money, but they can get tax for the winner depending on how much they're winning.

I do not know how the tax will apply to the gambler as I do not pay any taxes because of playing gambling. For the right answer, you can visit your local authorities to get more information.

[zanezane]

Check how much money you can deposit in a bank without having to file your taxes, mostly that's closest to what money you can hold before they tax you and I think gambling is also included in it.

[Hypnosis00]

It depends on the regulation of your country, there's no standard on gambling tax but mostly it's the gambling business that paid the taxes, not the gamblers. But in some countries like the US, the taxation is very strict and I believe gamblers are required to pay taxes from their winnings, so in that case, that's very technical and you need to hire an accountant to do the job for you.

[DU18]

In Germany there will come a new law making many online-gambling-providers legal in Germany. Also included there is a new tax. As far as I am informed a tax of 7% is claimed by the authority from every bet you make e.g. in a poker cash game. This would be the end for many providers especially poker.

Germany recently planned to increase taxes on online gambling sites by 5.3%, but this was rejected by the online gambling association, the European Gaming and Betting Association (EGBA) and now the EGBA has officially submitted this issue to the European Commission. The reason for the refusal is because the German online gambling tax proposal has the potential to distort business competition between online and conventional operators, so the gambling tax imposed by the German government has violated the provisions because it only benefits certain business sectors in terms of taxation, namely conventional (offline) gambling.

[Fundamentals Of]

It depends on which country you are from. Gambling laws widely differ from one country to another, even from one state to another. So we cannot say how gambling winnings are specifically taxed.

I am curious to know your country though. I don't think there is a country where gambling is made legal and acceptable and yet not taxed. Perhaps there is a certain limits as to how much is taxed this certain percentage and how much is taxed higher.

[Kakmakr]

Most governments could care less on how much you lose... they are only interested in your winnings and how money moves through these casinos. The KYC regulations are there to identify the gambler and then to determine how much money is deposited and how much money is pushed through the different casinos. (They track money laundering through the regulated casinos)

In many countries gambling income is considered to be non-taxable if it is an occasional hobby, but once you are professional... you have to pay taxes on that income, just like your salary are being taxed.

Some countries see Lotto winnings as a capital event, so you need to declare the winnings in your tax return as a non-taxable event.  

[$crypto$]

What if the government imposes a tax on gambling if cryptocurrencies are still not legalized? I think this is impossible until now there are still many countries that don't care about it, even the gambling industry on behalf of the company will be taxed, so for users with small values I don't think this is possible.
This will be difficult to manage if the government applies to the user's system, everything will certainly be a burden and what if you lose? surely not all will pay it unless their money is stored in the bank then it will be taxed.

[mu_enrico]

It's treated as income and some (depend on the local regulation) fully taxed (deducted) when you win. Let's say you win a $1 million lottery, you will receive less than $1 million. In my country, raffle prize is treated as a taxable gift and deducted by the organizer with 25% rate.

I am from a country gambling is not taxed which makes me not to know about the taxing, assuming if I have lose $500, and the gambling tax is 10%. If later I used $50 to win $5050, which means my gain is $5000, while the 10% tax is $500 from the $5000 gain. Will I be taxed, or will it be used as the capital loss just like in crypto?

AFAIK in the US, if you lose equal or more than your win, you don't have to pay taxes (it's deductible), but you have to do some paperwork/accounting.

Gambling Losses
You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as "Other Itemized Deductions."

Source.

[Wexnident]

It varies from country to country, as well as the amount of winnings as well as the type of game. There are various rules that are included in taxing, even when you lose from what I know, so it's kind of hard to actually describe how it works. I think the process is pretty much the same as how most taxes work, just that the amount varies depending on the rules that the country has set upon. It's a direct flat tax when it comes to winnings most of the time but for losing Im not really sure. This also applies btw to other types of gambling, like lotteries, sports bets, etc. from what I know.

[dothebeats]

Aren't gamblers only taxed when they won huge prizes? In the case of lotteries, here in my country the government takes 20% of the lotto winnings which exceeds $200. But normal individual bettors, gamblers, and players in online or offline casinos are not taxed as far as I know, for I visit some casinos and they do not really need any information about me not unless I win on their platform. That is the only time I will have to pay tax to the government. It's a rough cut from the winnings but I guess I'll take it.

[Reid]

It's kind of a deep discussion when it comes to taxation.
Of course, every government will put a tax on everything even with just 50 grams of salt in the grocery. They won't let a big business like a casino to get away from it. That's a large amount of money they will be missing.

When it comes to an online gambling site, I believe they are taxed on what country their site is based at.
Like for example, Sportsbet.io.

Sportsbet.io is owned and operated by mBet Solutions NV (Schout Bij Nacht Doormanweg 40, P.O. Box 4745, Curaçao). It is licensed and regulated by the Government of Curaçao under the gaming license 1668/JAZ. Some payment methods are handled by its wholly owned subsidiary, mProcessing Solutions Ltd, Cyprus (Menandrou 4, 1066, Nicosia, Cyprus).

https://sportsbet.io/sports
I won't worry about how the gamblers are taxed. Maybe with every bet, the tax is included in it or at withdrawal fees.

[Lordhermes]

In my country, the taxation is charged only on the gambling company and not in the players itself, gamblers have nothing to pay because they are in one way or the other contributing positively to the economy of a country, so the tax is been paid by the company when the time comes.

Also in my country, there are some betting shops that charges gamblers 10% on every winnings which the gambling company is not aware of, this sometimes causes gamblers to avoid gambling in some certain shop because of the rules.

[YOSHIE]

I am from a country gambling is not taxed which makes me not to know about the taxing,

If I'm not mistaken your country has started to apply the two-claps taxation rule, (1). Against casino gambling companies, (2). To the winner/bettor.

I take point 1.
 
Casino tax rules in nigeria

If it happens that the tax collection on the casino is applied as in the article above, I agree, the casino does not suffer a loss, it is a profi, any casino that pays taxes, is safe, the bottom line: gambling addicts already feel safe and comfortable from negative actions.

Point 2.
I object to this, if the tax must be imposed on the players in gambling.
Example:

DOES TAX PAYMENT IS REQUIRED ON SPORTS BETTING WINNINGS IN NIGERIA?

This can be burdensome on the part of the bettor.

point 1, I agree, point 2, no.

[Oshosondy]

...

From your second link is the quote below, I have never been taxed before makes me to think tax is not paid by gamblers in my country but I know the gambling companies are paying taxes, which means it is because my losses are more than my winnings is the reason I did not noticed this. Also I have been preferring crypto gambling companies recently. I see your post helpful.

Having winnings from sports betting with taxes in Nigeria is responsibility of every gambler to pay on time. It will keep them on the safer side and they can enjoy gambling in the future too. Paying taxes to the government is good but it is not apply on the money you lose. The money you lose can be adjusted to the money you win so this is the advantage you can get while paying taxes.

[South Park]

I have idea about how cryptocurrencies are taxed by the governments, but I just want to be sure if it is the same as how gamblers are taxed. Normally, the gambling industry will never go broke and they are growing daily and able to pay the tax imposed on them by the government, but what about gamblers. In crypto, capital losses are not taxied, is this applicable to gamblers too?

I am from a country gambling is not taxed which makes me not to know about the taxing, assuming if I have lose $500, and the gambling tax is 10%. If later I used $50 to win $5050, which means my gain is $5000, while the 10% tax is $500 from the $5000 gain. Will I be taxed, or will it be used as the capital loss just like in crypto?

It depends on the jurisdiction but I am not aware of a place in which something like this applies, there are places where you are not charged any taxes for your gambling wins, this is great and this means that any money that you get from gambling is completely yours, there are other places where you need to pay a tax but you cannot use your previous losses to reduce the tax you are supposed to pay, after all gambling is not an investment unless you are a partial owner of the casino itself.

[Fredomago]

...

From your second link is the quote below, I have never been taxed before makes me to think tax is not paid by gamblers in my country but I know the gambling companies are paying taxes, which means it is because my losses are more than my winnings is the reason I did not noticed this. Also I have been preferring crypto gambling companies recently. I see your post helpful.

Being said, the company are the one who oblige to pay taxes if the business is legally operating from te government, its been calculated from the income that th company are producing.

Not sure if we do have same thing  as I don't gamble offshore, I only deal with gambling using crypto and for now I'm okay
with the current set up.

Crypto gaming gives small player the luxury being anonymous online.

[jrrsparkles]

I have idea about how cryptocurrencies are taxed by the governments, but I just want to be sure if it is the same as how gamblers are taxed. Normally, the gambling industry will never go broke and they are growing daily and able to pay the tax imposed on them by the government, but what about gamblers. In crypto, capital losses are not taxied, is this applicable to gamblers too?

I am from a country gambling is not taxed which makes me not to know about the taxing, assuming if I have lose $500, and the gambling tax is 10%. If later I used $50 to win $5050, which means my gain is $5000, while the 10% tax is $500 from the $5000 gain. Will I be taxed, or will it be used as the capital loss just like in crypto?

AFAIK, gambling tax doesn't works like capital gain or loss tax method. Its very simple if you win certain amount from gambling the casino itself will deduct some amount for the tax purpose or you have to report and pay the tax according to your country's tax rate which depends on the country where you are live in.

If there is no gambling tax in your country then all you need to report the income tax.

[ChuckBuck]

In my country, the taxation is charged only on the gambling company and not in the players itself, gamblers have nothing to pay because they are in one way or the other contributing positively to the economy of a country, so the tax is been paid by the company when the time comes.

Personally I think the tax is still charged to the gambler, but it will be made into another tax, for example income tax, although it is not collected separately, it is always collected by including in your income tax

Also in my country, there are some betting shops that charges gamblers 10% on every winnings which the gambling company is not aware of, this sometimes causes gamblers to avoid gambling in some certain shop because of the rules.

Does the company not know? this is absurd, when a company can operate, they have to know all relevant rules and regulations, how can they operate without knowing about it?

[uneng]

Every person must seek for information on his own country, because the rules aren't the same for all, but basically what I've seen is that you have to present all your gambling activity every year to the IRS of your country, and calculate the final profit (or loss) during this year period. In case of loss there is nothing to be paid (probably), but in case of winning, there will be a percentage to be paid (over the winnings amount only).

However, when the individual wins the government's lottery, for an example, the tax is already discounted from the total prize on the moment of the payment. In this case I don't know if the gambler has to pay another tax over this winnings in the end of the year too, what would mean a double taxation. Taxation subject is a tricky one, because there are many hidden details aiming to eat more money from the contributor's pocket and we usually only spot them when we are in a situation like that for real.

[DoublerHunter]

~snip~
Aren't gamblers only taxed when they won huge prizes?

^ This is also what I am thinking for because as I understand it only deductible if only to the extent of your winnings, not the losses. For sure there will be a tax for the huge winning just like hitting a lottery jackpot and you are about to cash out millions of dollars in the bank. The money that you will declare as taxable are those your return income. Nevertheless, not all gambling winning especially if not a jackpot will mostly they did not declare to be taxable, not unless if your government are very strict about taxation.