Does your country tax your gambling winnings?

[bettercrypto]

As far as I know about online gambling before, our government did not collect tax from online casinos, but only from land-based casinos.

      But in 2021, if I'm not mistaken, there was a law to have a 5% tax on online casino apps that will be extended until now, it is applied to all legitimate casino apps even to every winner of a large amount in a casino.

[1714277389]

1714277389

[Lida93]

Am sure these tax levies levied on gambling winnings by some countries like the USA is not on all winnings. There are certain amount from which these taxes are levied on and this is same as taxing salary earners for the development of the community. The issue with OP not been comfortable about the taxation is that as gamblers we lose a lot of money to gambling so why would at a moment a win pops in then a tax is levied on it after the gambler must have incurred some losses in previous bets.. yea I understand the sentiment but it's just part of the gambling policies.

[STT]

The tax is not on customers but on the businesses where I live which is how all taxes should be done if it were levied fairly.    Until about 120 years ago income tax was not a thing most had to worry about, then we had multiple world wars that had to be paid for and so the common citizen became liable for governments costs there after.  It makes far more sense to place taxes on corporations with accountants and the ability to defer, handle costs properly.   
  This is still a valid tax on people because a business which is taxed must charge more in their product also, the money will come from somewhere.  However its far neater to do so this way.

[Don Pedro Dinero]

In Spain the legislator raised the limit for national lottery:

In 2018, the first 10k were free of tax.
In 2019, the first 20k.
Since 2021, the first 40k.

Any amount over that limit is taxed at 20%.

Yes, well, but the ridiculous thing about the case of lotteries in Spain is that the company is owned by the government, so it is a double taxation of those who buy lotteries, and, in fact, lottery prizes were exempt from taxation until 2013. In other words, the state on average keeps 30% of what it collects from the lottery. And on top of that it still charges you on the prizes.

Other bets different from national lottery (like poker, sports bets...) are free of taxes until 1k or 1.6k (it depends) but you have to pay between 19% and 45% for the surplus. The good thing is that you can deduct losses if you are methodical and you know how.

For the sake of clarification, the 1k or 1.6k you are talking about is tax free if you have no other income. In other words, if you have a job, like almost everyone else, you do pay taxes even on amounts lower than that, at the percentages you mention, which are the income tax rates.

[Chikito]

I'm curious as to how many other users have to pay taxes on their winnings.

We don't pay taxes because gambling is illegal in our country, but it certainly would be their own big mistake if the government doesn't pay attention to this because the casino is one of the biggest state income that can build, and make massive development. In fact, a long time ago, our capital city was like this because the previous governor implemented casino taxes to build the capital city. That tax implementation was successful despite much controversy from opponents.

And, I just think if our country implements casino tax, maybe the development will be evenly distributed in every place, because if I see a lot of gambling behind.

[bisdak40]

Lucky for us here in the Philippines that we don't have such a law of taxing gambling winnings. If the government decides to tax our winnings then probably most of us will stop gambling or maybe corruption will arise because many will bride the tax collector just to pay small amount as tax.

In our country where cockfighting is legal and some cockfighting enthusiasts will win a couple of million of pesos within a day then that could be huge money for the government.

The taxation of gambling winnings in the Philippines is a subject of debate, as the country's tax code lacks clarity on the matter. However, it is important to acknowledge that all gambling winnings are subject to taxation, and the specific amount owed depends on the type of gambling activity and the total amount won.

As far as I know, if an individual's gambling winnings are below PHP 10,000, they will be required to pay a 10% tax on the earnings, and 20% if however, their gambling winnings exceed PHP 10,000. It's worth noting that if an individual wins at a casino, the operator is responsible for reporting the winnings to the Bureau of Internal Revenue (BIR). However, it's unclear what the tax implications are for winnings obtained from offshore casinos.

It's important to mention that small-scale gambling games commonly found in local neighborhoods are exempt from taxes. These include raffles, small-scale lucky draws, and bingo or any other gambling games that can be found on the streets.

If there are any instances of tax evasion, it is likely due to the law not being restrictive enough.

After some research, i did know that there is a law regarding this "winnings" taxation but i guess it is not strictly implemented by the appropriate agency.

With my experience when i won 60K Php on swertres, there was never a tax implemented, i even got my winnings from PCSO office here in our place.

Like i said above, if the government will strictly implement this law, they can tax substantial amount of money in cockpit arena as some people there (some government officials) will win more than a million pesos in just one session/one night.

[Fundamentals Of]

Wow, I wanna live in Australia. That's actually fair because the money that you bet is already taxed most probably because it is coming from your income, whether it is from your salary or from a business.

In my country, gambling winnings are taxed. I am not paying for it though. My winnings are always small anyway. But the law actually provides that gambling winnings should be treated as a normal income so it is also taxed as a normal income. The percentage may vary though. It would depend on the amount.

[aioc]

I live in Australia and we have no taxes on all gambling winnings (lottery, hose racing, sports betting and casinos).

That's what some gamblers want to have in their own country tax free gambling winning so you can enjoy it all

I know the USA has gambling taxes and I think it's ridiculous.

It's also ridiculous here in our country, they are taxing 20% even if the winning is only $300

You are risking your own money and if you win you are penalised.

That's what the government is good at doing, taxing everything we enjoy, its something that will not change, all things can change but never government taxes.

[Hispo]

I think that here in Venezuela the government only taxes the casinos and places where people gamble, the operators and owners of those places. It is between 10-15% of casino winnings.

On the other hand, I have not heard or seen people being taxed from their winnings, so I am not sure if it happens, it probably does not, since our government is more used to taxing businesses over individuals.

Taxation here is also difficult to enforce and track on individuals as well.

[bittraffic]

I think that here in Venezuela the government only taxes the casinos and places where people gamble, the operators and owners of those places. It is between 10-15% of casino winnings.

On the other hand, I have not heard or seen people being taxed from their winnings, so I am not sure if it happens, it probably does not, since our government is more used to taxing businesses over individuals.

Taxation here is also difficult to enforce and track on individuals as well.

That's what I know too. Same for the state government lottery where people who won will have to pay huge taxes for it. I was thinking why they would tax those when it's already from the government. People who are buying lottery tickets are already helping the government by participating but they were still taken advantage of after winning.

The real casinos will have no complains about the taxes, they are businesses no different from those malls and stores.

[Hispo]

I think that here in Venezuela the government only taxes the casinos and places where people gamble, the operators and owners of those places. It is between 10-15% of casino winnings.

On the other hand, I have not heard or seen people being taxed from their winnings, so I am not sure if it happens, it probably does not, since our government is more used to taxing businesses over individuals.

Taxation here is also difficult to enforce and track on individuals as well.

That's what I know too. Same for the state government lottery where people who won will have to pay huge taxes for it. I was thinking why they would tax those when it's already from the government. People who are buying lottery tickets are already helping the government by participating but they were still taken advantage of after winning.

The real casinos will have no complains about the taxes, they are businesses no different from those malls and stores.

In my opinion, people who partake in gambling and sport-betting should get to pay less of their winnings in form of taxes, it does not make much sense, because we are literally expecting to lose the totality of our wager and yet, the state expect a steadily and secured stream of money from all of us. 

I have seen videos on how much people who won the lottery in USA ended up paying, and it just feels unfair.

[LUCKMCFLY]

I live in Australia and we have no taxes on all gambling winnings (lottery, hose racing, sports betting and casinos).
I know the USA has gambling taxes and I think it's ridiculous.
You are risking your own money and if you win you are penalised.
I'm curious as to how many other users have to pay taxes on their winnings.

So far I have used local gambling that only uses my country's fiat currency, there has been no invite in terms of withdrawals so far, but I often find deductions by the gambling sites themselves, and they say it is a transaction fee.
But if I use gambling using crypto and then I want to exchange it if I win into my country's currency, it's the same as we transact crypto which is taxed on every transaction I make.
Taxes are indeed a problem if the rates charged are large enough, especially if the bets are made using large amounts of money. But whether it's ridiculous or not, I think the government also wants to profit from the wins of its citizens to supplement the state's income, because the money involved in gambling is quite high.

In the country that I live, taxes are not paid for playing in a casino either, what I did not know is that other countries have these strong policies, I really do not know if it is good or bad, but what is presented in these things can These are statements that turn out to be quite strong and sometimes they are strange, I know that in Chinma things are much more controlled, in the USA too, because for anything they ask for a good statement of what is spent or not, which, well, not I totally agree, a government always has money inflows, so have fun too? it's pretty strong stuff.

[wxa7115]

I live in Australia and we have no taxes on all gambling winnings (lottery, hose racing, sports betting and casinos).
I know the USA has gambling taxes and I think it's ridiculous.
You are risking your own money and if you win you are penalised.
I'm curious as to how many other users have to pay taxes on their winnings.

Where I live there is not a standard regulation when it comes to those taxes as they are managed at the state level, so there are some states in which there is no gambling tax at all if you happen to win, but there are some other states in which the taxes can be as high as 30%.

And while I find this nothing ridiculous as well, as it does not makes sense to me for such a huge tax to be in place, there is not much to do except to avoid the jurisdictions in which those taxes apply.

[BobK71]

If you win, you have to pay the taxes and don't have to pay if lose. The government of every country here should determine the tax only from the gambling sites. However, the gambling is not yet approved in many countries of the world. There are a lot of gamblers who manage gambling online. Moreover, the government will not be able to find them if they want. Because many people are using VPN even despite the risk. They have no way to gamble accept in this process. It is not logical to determine such tax from the gamblers. However, if they can impose a little tax on a large amount of jackpot winner or a specified amount. However, I am not in favor of taking tax from the gamblers.

[Kakmakr]

I think it is unfair if you lost say $10 000 and then suddenly win say $5000.... and then they expect you to pay taxes on the $5000 that you have won, but unfortunately that is how it is working in my country.

The online gambling provide nice bet history for you to use, but they do not want that, they are just interested in your winnings. I have heard that they are in the process of changing this, because they want to tax crypto winnings as capital gains. 

[blockman]

In my country, it's mostly taxed but it all depends. If the casino says that it's all tax-free then they'll be the one to shoulder it or it's actually tax-free. But if you haven't heard any word from them that your winnings are tax-free then you know what it is, it's taxable.
That's how the gambling winnings do happen in our country but at most time, they're all taxed.

I think it is unfair if you lost say $10 000 and then suddenly win say $5000.... and then they expect you to pay taxes on the $5000 that you have won, but unfortunately that is how it is working in my country.

The online gambling provide nice bet history for you to use, but they do not want that, they are just interested in your winnings. I have heard that they are in the process of changing this, because they want to tax crypto winnings as capital gains. 

I think that there's an exemption on this and there will be some rules applied so that the gambler wouldn't be shouldered a lot just because of winnings are taxable. As long as you'll be able to declare that to the bureau then I think that you'll be spared if that's the case.

[davis196]

I live in Australia and we have no taxes on all gambling winnings (lottery, hose racing, sports betting and casinos).
I know the USA has gambling taxes and I think it's ridiculous.
You are risking your own money and if you win you are penalised.
I'm curious as to how many other users have to pay taxes on their winnings.

There was an old forum thread about the same subject. Perhaps you could search the forum instead of creating new threads about old topics.
Anyway, all gambling operators in my country pay a 15% revenue tax and all gambling winnings are treated like income, which is a subject to a 10% income tax. I guess that Australia doesn't have specific gambling taxes, but the gambling winnings have to be declared and taxed as income.
Risking your own money doesn't mean that they should be tax free. Many countries have capital gains tax, investing your capital in stocks and bonds can also be considered "risking your own money".

[Fiatless]

I live in Australia and we have no taxes on all gambling winnings (lottery, hose racing, sports betting and casinos).
I know the USA has gambling taxes and I think it's ridiculous.
You are risking your own money and if you win you are penalised.
I'm curious as to how many other users have to pay taxes on their winnings.

In my country, most of the taxes we pay are collected indirectly. You might not pay the tax directly from your wins but the casino will collect the tax on behalf Of the government and remit it to them at the end of the month. The banks will also collect tax from you when your wins are paid into your account. I also see this as double taxation which is very wrong. You can add up your losses as expenses on your personal or corporate tax returns because gambling is seen as a business or profession. This entails that your losses can be deducted from your income as expenses before your payable tax will be derived.

[Hirose UK]

In my country, most of the taxes we pay are collected indirectly. You might not pay the tax directly from your wins but the casino will collect the tax on behalf Of the government and remit it to them at the end of the month. The banks will also collect tax from you when your wins are paid into your account. I also see this as double taxation which is very wrong. You can add up your losses as expenses on your personal or corporate tax returns because gambling is seen as a business or profession. This entails that your losses can be deducted from your income as expenses before your payable tax will be derived.

If that's true, then the tax deduction includes quite a large amount of every win you get because the tax is taken twice from the casino and bank that you use.
It's not that a win tax policy like this is detrimental to gamblers because gamblers can win once, not necessarily that victory covers previous losses, so even if you win you still experience losses.
This winning tax seems to be used by the government of your country so that they can make money from their citizens who gamble.

[Porfirii]

In Spain the legislator raised the limit for national lottery:

In 2018, the first 10k were free of tax.
In 2019, the first 20k.
Since 2021, the first 40k.

Any amount over that limit is taxed at 20%.

Yes, well, but the ridiculous thing about the case of lotteries in Spain is that the company is owned by the government, so it is a double taxation of those who buy lotteries, and, in fact, lottery prizes were exempt from taxation until 2013. In other words, the state on average keeps 30% of what it collects from the lottery. And on top of that it still charges you on the prizes.

Don't forget that, to this percentage, we should add the Impuesto de Valor Añadido (VAT) because, what you want the money for? we all want the money to purchase things and services. So in the end the 30% becomes more than a 50% that goes to the State through direct and indirect taxation. Well, at least we have free healthcare.