Gambling with crypto because taxation makes no sense?

[Mr.suevie]

But as for gambling at online casinos, I don't know because I've never won. But for crypto casinos, the winner doesn't pay any taxes because the winnings are in crypto unless he converts his crypto to fiat and sends the money to his bank account. But maybe the regulations regarding gambling tax in each country are different, so the implementation is also clearly different.

The regulation are certainly different as the first time I stumble upon this thread I was kind of surprised and skeptical on what to say because in all my time gambling and getting huge wins, I have come across such thing as payment of taxes or any deduction of funds by the gaming company before the funds reaches my hand except its lottery ticket you guys are talking about.

I use to bet sometimes on local casino here in my place and I can I have had my own fair winning and everytime , immediately the funds is been paid to my account direct and by this I mean fiat casino.

Recently there was this case of a friend who we taught at the same school together acquiring a massive win of about 11million naira which is equivalent to $10000 with a stake power of about low as $0.5, this winning is massive and the other day I was with him he told me that the funds has been paid in full by the betting company @sportybet.com.ng and without any difference to actual money so I really don't the fact about the taxes or is it that my own country regulation system is different.

[Zlantann]

Moreover, in many countries, filling out the forms to get taxed can be a nightmare. For winning 100$ for example, you will have to pay a big chunk of it to an accountant to find how it should be taxed. Bureaucracy is a whole other debacle in and of itself.

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

Different countries have unique policies on gambling tax, hence it is important to always check these laws before engaging in gambling. In some countries, the casinos are mandated by the law to deduct taxes from every win, so the government don't expect gamblers to report or pay any tax. In some other advanced nations filling tax reports is simple because it is automated which means you don't have to go through any cumbersome bureaucratic process.

Crypto gambling in my country is unregulated which means the government has no control over them. Hence, I would agree that it could be a means to invade tax but that's not my intention. Crypto gambling is faster, safer, technically advanced and protects privacy, that's why I prefer it.

It would be better if the government want to tax gamblers, the government also supposed to pay the percentage taxed of the amount the gamblers are losing. I mean assuming the tax is 10%, if gamblers lose money, government also supposed to pay 10% to the gamblers of the amount they lose. This will make taxing gamblers justifiable.

In some countries, gamblers can fill the amount of losses they incur on gambling and it will be deducted from the tax they are expected to pay. But the gambler has to prove his losses and win with verifiable records. This is ideal because just as in other ventures gambling involves income and expenditure, therefore gamblers shouldn't bear the losses while the government enjoy the wins.

[wiss19]

A great topic, tbh.

Let's be honest, we all started gambling in crypto because there was privacy and anonymity. I would have continued to bet at bet365 if crypto casinos were asking for KYC earlier in the day. My first experience I believe was Primdice where you can make an account within 5 seconds, win and withdraw without anyone asking you a single question. To be honest, I think dice sites are still pretty cool and don't ask for identity and stuff.

But the range has expanded now and it makes sense why casinos require verification and documents because they are answerable to the license providers.

[Makus]

The regulation are certainly different as the first time I stumble upon this thread I was kind of surprised and skeptical on what to say because in all my time gambling and getting huge wins, I have come across such thing as payment of taxes or any deduction of funds by the gaming company before the funds reaches my hand except its lottery ticket you guys are talking about.

so I really don't the fact about the taxes or is it that my own country regulation system is different.

Well said mate, you've spoken my mind on this matter. This is the first time I'm hearing someone talk about tax on gambling. So do you mean that after a gambler has successful won a bet out of luck, there are agencies who will impose tax on them for winning a gamble? I mean what is this? Pardon me but it sounds really stupid to have such experience after winning. In my country taxes aren't imposed on gamblers for winning, since they bear the risk of losing or winning. However this is another reason why crypto is better than fiat, since they don't have full control over it, it will be difficult for them to impose tax on crypto gambling.

[iv4n]

If you are paying with crypto, it does not mean that you are free from taxes then. You still have to pay the taxes. Regarding tax filing by an accountant, yes it can be costly. But , I suggest you to learn this yourself. It is not something very hard and everything can be filed online following different online tutorials available on YouTube or Google.

Taxes seem to be unfair to majority of population especially in countries where politicians are very corrupt. But , if everyone decides to avoid taxes, the economy will come to a standstill.

Well, we can't avoid some taxes... but if we can skip some of them why not?! It certainly depends on where we live, some countries are just very corrupt as you say, and I live in one. There is a gray area where many things are unregulated, and if I can avoid some taxes I will for sure. I don't think that gambling with crypto is taxed at all, but what is taxed is cashing out through the banks... but I don't care about that, my cashouts were p2p, so somehow I am still anonymous.

Crypto is far better than fiat, simply we don't have to bother with some procedures and third-party services... Direct & instant/ fast deposits/withdrawals from the wallet and low fees are what make crypto better.

[danherbias07]

I have just been recently informed about how gambling works here in the nearest cockpit in our area and yes this must suck for their patrons because a big chunk of the win goes to the government and worse, it's totally cut before you receive the winning money in cash.
Let's say betting for one rooster is x1.80. Gamblers there said to me you will only get x1.60 when you receive the cash. That's a lot of money if every player's profits will be cut by x0.20. Then, events like derby will happen and they will have more customer which means more cuts from their profits.
And there's the paid parking area too. More money.

In cryptocurrency, I was never taxed yet, it's only the transaction fees that hurt sometimes, and if you want to cash it out with literal cash the only loss is the exchange rate of the preferred currency because local exchanges mostly have lower rates than international exchange like Binance or others.
Everything is still legal and yes this is an ease for those who just win small amounts but are scared to continue so they withdraw.

[decodx]

Yeah, I guess some folks want to gamble using crypto coins and stuff to get around annoying paperwork and having the Man watching their money.  But don't forget Uncle Sam and tax people all over still say that money you make from Bitcoin gambling or whatever is still taxable, like assets, so if you win big you better be ready to pay up. 

Tax laws around gambling winnings can definitely be tricky, that's for sure.  Personally, I'm not a huge fan of having all my personal information out there for any organization to see either.  At the same time, we do gotta follow the law whether we like it or not and  my approach is trying to find a happy medium - being above board with reporting winnings when I have to but also using anonymous payment methods when I can to keep at least some privacy.  It's not a perfect solution by any means, but it helps me sleep a little better at night.  This stuff can definitely be frustrating to navigate though.  Perhaps someday well see regulations loosen up a bit to allow more financial privacy.  A guy can dream, right? In the meantime, just gotta play the hand we're dealt as best we can.

[Reatim]

Taxation is a topic that often comes up when it comes to someone winning anything in gambling.
The so called "nationally licensed" providers will usually automatically get a cut from anyone's winnings whenever they win anything.

And let's be realistic, we all know the drill with gambling. Most gamblers are not in the green and those that persist do it for the thrill of it, not to earn from it. So when you win, it's usually from your own bank. But whenever someone is lucky enough to catch a break, governments will slip in and take their share. Regardless if you've lost more than you've earned in total for instance. The irony on this matter is also that gambling wins are used to substitute how many taxes these state "licensed" casinos have to pay. So the whole subject of gambling taxation is unfairly structured towards the player.

Moreover, in many countries, filling out the forms to get taxed can be a nightmare. For winning 100$ for example, you will have to pay a big chunk of it to an accountant to find how it should be taxed. Bureaucracy is a whole other debacle in and of itself.

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

There are so many advantage of why we must gamble in using cryptocurrency but that is the best reason and why we need to hide from paying taxes using these currencies to gamble in many games and many sites available not mentioning the chance of doubling the value of your crypto when pump happens .

I also love the Idea of our gambling funds sometimes being inside the gambling site and then while you are gambling the market makes its ATH and yes you'll have to withdraw with how much value your coin is.

[Outhue]

I also think that the governments are cheating their citizens, gamblers can win or lose, but gambling sites are the ones that are constantly winning and making money from customers. In that sense, only those gambling sites are supposed to be taxed, not the gamblers.

It would be better if the government want to tax gamblers, the government also supposed to pay the percentage taxed of the amount the gamblers are losing. I mean assuming the tax is 10%, if gamblers lose money, government also supposed to pay 10% to the gamblers of the amount they lose. This will make taxing gamblers justifiable.

Maybe in other countries but in my own country gamblers are not taxed in any way, if that's happening anywhere then its not good, that's a big reap off from the government, although there are other ways that the government is robbing us in broad day light, so it varies depend on countries.

Some countries are even paying taxes on crypto, I read it online but that's way stupid, I will move out of such country because the cryptos aren't even supported by the government, they are trying as much to kill majority of these crypto projects yet they want people to pay tax? Crazy things are indeed happening in the world.

As a matter of truth, I have never like the government for anything, the only thing I expect of them is security, anything else is garbage, this was why I felt saved from stupid dramas since I started investing in Bitcoin, the government want an eye in everything.

[coin-investor]

Taxation is a topic that often comes up when it comes to someone winning anything in gambling.
The so called "nationally licensed" providers will usually automatically get a cut from anyone's winnings whenever they win anything.

This happens in a land based gambling platform where the government cut 10% or even more of the winner's earning even before they received their winnings, but on online casinos especially on Crypto casinos you will have to declare if you agreed to include it in your tax declaration and this is why its attractive to play on online casinos because of the government's tax cut

And let's be realistic, we all know the drill with gambling. Most gamblers are not in the green and those that persist do it for the thrill of it, not to earn from it. So when you win, it's usually from your own bank. But whenever someone is lucky enough to catch a break, governments will slip in and take their share. Regardless if you've lost more than you've earned in total for instance. The irony on this matter is also that gambling wins are used to substitute how many taxes these state "licensed" casinos have to pay. So the whole subject of gambling taxation is unfairly structured towards the player.

The government will always find a way to tax their citizen in everything they do and they see gambling as the easiest because they see this as a luxury and they think only those who has the money will play in the gambling platform.

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

I agree that is why the Crypto casino are now a multi billion industry and is taking a big cut from land based casinos because of the taxation, the government will find it hard to tax someone who is anonymous unless the government compel the online casinos to show their winner's information for taxation.

[slapper]

Why do governments tax gambling gains even if the gambler loses the whole thing? Seems like the opposite of fairness. Instead of taxing every win right away, shouldnt there be a system that reflects net gains over time? To make matters worse, the red tape seems to be involved, doesnt it?

Cryptocurrency can be used in gaming to get around these complicated tax systems, which somewhat restores balance. Seeking economy and fairness is what its all about, not avoiding responsibility. Looking at it this way, cryptocurrency seems like a way to make financial deals more fair, dont you agree? More than trying to avoid paying taxes, its about wanting a system that takes into account the player's total financial situation.

[Westinhome]

I have just been recently informed about how gambling works here in the nearest cockpit in our area and yes this must suck for their patrons because a big chunk of the win goes to the government and worse, it's totally cut before you receive the winning money in cash.
Let's say betting for one rooster is x1.80. Gamblers there said to me you will only get x1.60 when you receive the cash. That's a lot of money if every player's profits will be cut by x0.20. Then, events like derby will happen and they will have more customer which means more cuts from their profits.
And there's the paid parking area too. More money.

In cryptocurrency, I was never taxed yet, it's only the transaction fees that hurt sometimes, and if you want to cash it out with literal cash the only loss is the exchange rate of the preferred currency because local exchanges mostly have lower rates than international exchange like Binance or others.
Everything is still legal and yes this is an ease for those who just win small amounts but are scared to continue so they withdraw.

Gambling with the taxation is not the welcome one by the gamblers,because only the gambler who win the game can afford the taxes.But you had forgot about the gambler who not win any money from the gambling and need to pay taxes for each deposit to the gambling sites.This was the hardest part for the gambler who afford the loss and need to pay the taxes for the gambling involvement.If the gambler had won the winnings of 50$ from the usage of the 100 dollars,then he doesn't care to pay the tax of 10 dollars from the 50 dollars.This was the cause of the emerge of the cryptocurrency based gambling sites.The track of the cryptocurrency was not really easy one,So if you withdrew and deposit using the cryptocurrecny.It will help you to get away from the monitor of the government taxation department.

[jrrsparkles]

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

Gambling with crypto is no excuse for paying taxes but at least we can pay the taxes for net income instead of every win which is the biggest advantage in crypto casinos. And it makes sense though why the gambling industry is the place where crypto is used mostly nowadays so people don't really want to go through all these hurdles.

[wiss19]

25% as tax is such a big number. At what point do your government deduct the money? Do they have the authorisation to debit accounts on the basis of taxation? In my country, we complain of tax that is 10% in my country... seems we are even enjoying here.  Besides, so many things are not taxable here and the rate of tax evasion is high.

You bet, some countries charge 30% or more on gambling taxes or even income taxes from people. People pay 20% as a basic rate as income tax for their income in the UK, it goes up to 40% based on the amount they earn I believe. So, things are not always fair with people and governments of some countries really take out all their expenses from their citizens which can sometimes be truly frustrating. Imagine earning $2,000 a month and paying $400 only in taxes.

When it comes to gambling, countries where cryptocurrencies are regulated might be able to tax the winnings of gamblers even if they are in cryptocurrencies because if the gambling platforms are licensed and regulated, the authorities will be able to find the people who manage to win money from the platforms and tax them for it.

[Fatunad]

Taxation is a topic that often comes up when it comes to someone winning anything in gambling.
The so called "nationally licensed" providers will usually automatically get a cut from anyone's winnings whenever they win anything.

And let's be realistic, we all know the drill with gambling. Most gamblers are not in the green and those that persist do it for the thrill of it, not to earn from it. So when you win, it's usually from your own bank. But whenever someone is lucky enough to catch a break, governments will slip in and take their share. Regardless if you've lost more than you've earned in total for instance. The irony on this matter is also that gambling wins are used to substitute how many taxes these state "licensed" casinos have to pay. So the whole subject of gambling taxation is unfairly structured towards the player.

Moreover, in many countries, filling out the forms to get taxed can be a nightmare. For winning 100$ for example, you will have to pay a big chunk of it to an accountant to find how it should be taxed. Bureaucracy is a whole other debacle in and of itself.

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

When we do speak about taxation then expect that government would really be that attentive into that, no matter what industry you are involved into and on what things that you are dealing with.
As long you could really be able to be taxed then they would definitely do it and they dont just care. %? It would really be that totally depending on them. So far here in our country
taxation in gambling winning isnt something that happening not unless if you are really that hitting some lottery then thats a guaranteed tax but if its not or simply saying
you are playing on a physical casino then you arent obliged on paying up something.

Its true that if something becomes too strict then it would really be just that so normal that people would really be going into those options on which they could
really be able to avoid taxes. Yes, it might really be that suggested since we do know on what taxes are and its benefits but on the sense that it do really goes
to the roof then this is where things that would make out those second thoughts.

[Johnyz]

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

Gambling with crypto is no excuse for paying taxes but at least we can pay the taxes for net income instead of every win which is the biggest advantage in crypto casinos. And it makes sense though why the gambling industry is the place where crypto is used mostly nowadays so people don't really want to go through all these hurdles.

It should always be based on net income since we will compute with our losses as well.
Luckily, my country still allows us to gamble without forcing us to declare any income online or with crypto because there is no regulations yet and that is why many are slowly adapting crypto because this can be a tax free market, well at least for the purpose of crypto income. Paying such big amount of tax that will just go for a corrupt politicians is always a heartbreaking to many.

[goaldigger]

Avoiding the tax legally are the best option to many and in my country you can gamble and win without even paying any income tax because it doesn’t require you to declare it. Its sure that the income tax rate differ from one country to other country, I believe some part of the US forces you to declare it as an income and that’s why they have to pay for the tax or a risky option to avoid if. Some gambling site collects the tax itself as mandated by the regulations so I’m sure you can’t escape paying taxes after all.

[jrrsparkles]

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.

Gambling with crypto is no excuse for paying taxes but at least we can pay the taxes for net income instead of every win which is the biggest advantage in crypto casinos. And it makes sense though why the gambling industry is the place where crypto is used mostly nowadays so people don't really want to go through all these hurdles.

It should always be based on net income since we will compute with our losses as well.
Luckily, my country still allows us to gamble without forcing us to declare any income online or with crypto because there is no regulations yet and that is why many are slowly adapting crypto because this can be a tax free market, well at least for the purpose of crypto income. Paying such big amount of tax that will just go for a corrupt politicians is always a heartbreaking to many.

In fiat casinos, the taxes will be deducted by the platform itself and only credit the remaining funds to your account or at least that how it works in most countries. But for the loss, they won't take into any consideration and you can claim tax paid from the profits as well which depends on your country's gambling income tax laws.

[GxSTxV]

I completely forgot about taxes since I have always been gambling with crypto casinos using crypto coins. It never occurred to me that there might be taxes when winning big. So If governments discover players who have won large amounts they will likely impose taxes for them not just on the winnings but also on assets they own in their wallets. In general, they could take a larger tax share compared to a traditional casino in real life.

Despite playing foe so long and in much casinos Ihave never paid taxes, and given that gambling and crypto are illegal in my country if I get caught that might lead to both tax issues and legal consequences for me possibly even getting to jail just for doing simple things and not harming anyone, it even sad to think about that

[Yatsan]

I'm not really gambling with crypto to evade taxation because there is no tax on gambling in my country. I chosed crypto for gambling for the numerous advantages it offers such as ease of access, privacy and fast withdrawals.

In my country, there is a law that allows the state to obtain 25 percent of any amount a person wins in games and competitions of all kinds, even if he won it with a company outside the state or on the Internet, if the state agencies are able to prove that. The state automatically deducts that amount in the form of payable taxes and considers it a taxable grant. Of course, these procedures go through a bureaucratic process that will take a long time, and it is not possible to predict how long it will last.

25% as tax is such a big number. At what point do your government deduct the money? Do they have the authorisation to debit accounts on the basis of taxation? In my country, we complain of tax that is 10% in my country... seems we are even enjoying here.  Besides, so many things are not taxable here and the rate of tax evasion is high.




 

Unfortunately there are countries wherein gambling is really prohibited but due to taxation, some gambling providers and lotteries are considered to be registered under the government. The only downside is being taxed with a higher percentage and amount than with countries which are also implying such rule; but that's just normal 'coz tax percentage depends on which country you are living.

But going back, one reason for sure why we are gambling in cryptospace is avoiding tax. Actually I'm fine with paying tax over my gambling profit in fiat especially 'coz it allows me to gambling freely but if the percentage is that big, then that's why gambling in web 3.0 is more preferred.