Why paying tax on gambling winnings when government doesn't regulate Gambling?

[Kemarit]

Requiring gambling winnings tax is actually not proper thing, as I have said several times in other threads regarding winnings tax, the government should only apply it to casinos as form of tax for operating permits.

If I'm not mistaken, government doesn't tax gambler per se, it is still the casinos that they put a lot of tax. Except maybe if you won the local lottery, that's where the government tax comes in because it's obvious that they run it.

I don't know which country does this, but if I lived there, I would make sure not to use fiat casinos or local casinos to avoid winnings tax, it is better to gamble on foreign gambling sites that can provide me with security, comfort and various other benefits.
I think the government of the country where you live really doesn't care about its citizens who like to gamble, there should be lot of consideration before policy like this is made official, especially since it doesn't provide any benefits to the people there.

I lived in a country that have big traditional base casinos, but we are not tax when we won, they are the one paying the casinos. However, as per protection from online casinos, I do no think that there is enough regulations from many countries. And even if you file cases about a certain casinos, I do not know how it will be handle as obviously, it's cross border and laws are going to be that complicated to go after them.

[tbct_mt2]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

Don't regulate gambling does not mean government does not regulate their citizen income tax. If you have income, you must include it in your tax report and very likely have to pay income tax for it.

If you win lottery, you will be charged income tax when you receive lottery reward but you can reclaim it if at the end of fiscal year, your total income is not high enough to be charged income tax. Same with your income from gambling, but of course governments have their regulations on gambling. In some countries gambling is illegal too and I believe that if you are gambling illegally, you will never want to report to government about your gambling and any income from it.

[peter0425]

Anyone who has a case with a casino and the casino is licensed, I believe the person is not just supposed to relay on the government, but they can get their own lawyer and file lawsuits against the casino, as there have been cases of gamblers winning from such a case.

Even if they get a lawyer, how do you think will the court and the lawyer approach the case? Obviously based on the laws that the government has written. A lawyer won’t be able to do anything if there really is lack of legal protection from the government itself.

If your legal representative is really good and they can get somehow through the loopholes then they can make you win. But at the end of the day, the government should really make clear laws about this.

[Don Pedro Dinero]

Recently many countries around the world are now introducing gambling taxation on it citizens and even charging betting houses and casino's some amount of money to operate within it jurisdiction, and recently my country just introduced a 5% Revenue sharing and taking from both betting houses and gambler's winning and this news make me to ask why the government takes such money from gambler's but won't protect the gambler when their is troubles with the betting house.

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

What you say is contradictory, if the government is able to charge a tax to the betting house, I don't know how they are going to claim that they have no control over it.

Surely what happened in Europe 10-12 years ago is happening in your country. Before that, as a citizen you were obliged to pay taxes on gambling profits, which practically nobody did. The gambling houses were based in tax havens, which meant that they ignored government requirements. But there came a time when online gambling was regulated and they were forced to have a licence to operate, paying an initial high fee and taxes based on their revenue. However, this came with accountability: licensing goes hand in hand with supervision, and if a player has a problem with a gambling house, they can turn to the general directorate of gambling or a similar body.

[Samlucky O]

Recently many countries around the world are now introducing gambling taxation on it citizens and even charging betting houses and casino's some amount of money to operate within it jurisdiction, and recently my country just introduced a 5% Revenue sharing and taking from both betting houses and gambler's winning and this news make me to ask why the government takes such money from gambler's but won't protect the gambler when their is troubles with the betting house.

They see gambling as the fastest growing business and want to place taxation on them. They don't care to know if you lose or not, wether it affects your mental state or not. We are in the world where leaders don't protect the rights and interests of its citizens but what to benefit from them. Of course that is wickedness. If they want to place taxation on betting I think they should device a means to make it profitable for people before they can request for tax, but anyway I see no need why government will add tax on gambling because it's not profitable to the gamblers except for those casino shop owners.

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

If government can't handle issue between customers and casino owners In respect to financial issues then no need to place tax on them.

[Smack That Ace]

Requiring gambling winnings tax is actually not proper thing, as I have said several times in other threads regarding winnings tax, the government should only apply it to casinos as form of tax for operating permits.

If I'm not mistaken, government doesn't tax gambler per se, it is still the casinos that they put a lot of tax. Except maybe if you won the local lottery, that's where the government tax comes in because it's obvious that they run it.

Likewise, I have seen many governments enact regulations and taxes on the gambling industry but they all target the casinos because they are in business. This is also the first time I have heard of the government taxing gamblers, which is really strange to me.
Regulations need to be fair to a certain extent, otherwise it will be counterproductive for the government because if it is too strict and extreme, I think casinos and players will find ways to evade taxes and circumvent the law. I think governments understand this better than anyone.

I don't know which country does this, but if I lived there, I would make sure not to use fiat casinos or local casinos to avoid winnings tax, it is better to gamble on foreign gambling sites that can provide me with security, comfort and various other benefits.
I think the government of the country where you live really doesn't care about its citizens who like to gamble, there should be lot of consideration before policy like this is made official, especially since it doesn't provide any benefits to the people there.

I lived in a country that have big traditional base casinos, but we are not tax when we won, they are the one paying the casinos. However, as per protection from online casinos, I do no think that there is enough regulations from many countries. And even if you file cases about a certain casinos, I do not know how it will be handle as obviously, it's cross border and laws are going to be that complicated to go after them.

Frankly, these regulations don't make much sense and we shouldn't put too much faith in them. Simply because the government does not have the time and resources to resolve lawsuits or disputes that only involve a few hundred dollars or a few thousand dollars, they will prioritize resolving larger value litigation. So we should protect ourselves first instead of waiting for the government to protect us.

[cryptoaddictchie]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

Thats true. If ever I got jackpot on doing gambling on crypto sites. Why bother to report it on your tax office, since they dont have jurisdiction to that site or they dont license it. Well if you want to pay tribute for that win then report it. But the case is if that gambling site is in trouble, and you got caught with for example (scam or hacked) you cant complain to the government about it and apprehended them. It not work that way, so its quite risky too (the thought I knew about it).

[Dewi Aries]

If I were in your position then it seems like there is no other option for me to do other than not complying with the rules given by the government to gamblers to pay a certain amount of money for taxes, because it seems unbalanced when you pay taxes to the government but the government does not take any action when the gamblers have problems with the casino such as the casino not paying the amount of winnings achieved by the gamblers or other problems.

I think that is the most appropriate action you can take, but it will also only be possible to do if there is no threat or punishment or maybe coercion from the government to you to pay taxes, or what is meant is when you cannot escape at all from the regulations implemented by the government in your country.

[Adbitco]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

Government are the worst sets of people in the world who interest is only to what will add more dollars to their pockets and their families benefits from it instead of fighting for justice. Taxation on casino/gambling site is not actually the best but, seeing that they implementation taxation to gambling makes it so bad because when a gambler falls into addiction government wouldn't take care of them by taking them to the rehabilitation center, they are mostly concerned about their interest.

[danherbias07]

This is wrong, there will be no records of the taxation if they don't regulate it. It must be licensed in your country and that would prevent corruption because the numbers will be transparent and those who are really serving the country right can ask questions about where the money will go.
What the dude in your example did was right. He avoided paying because he knows the rules and it must be licensed first before they can get tax money from both the online or physical casino and the people.
If none of that is done right, it's all just going to their pockets and I doubt there will be a trace of that money even if someone will question it. They can just simply deny they didn't take any.

[Strongkored]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

If this is their answer then play at a casino that is licensed by your goverment to protect you when faced with such cases.

However, if there are complaints about casinos, especially physical casinos, the government should take firm action by closing the casino if it does not have a license.

It is quite strange indeed if the government collects taxes but does not have rules that protect citizens from irresponsible casinos, it seems they are only care about the money which is indeed very large in circulation but do not care about cases that harm their citizens because of the actions of casinos, but I suspect that when casinos face cheaters they will not get defense from the government either, so the government only cares about money not citizens and casinos.

[Kelward]

I don't know how far gambling is regulated in my country but I know that governments are more interested in taxations. Governments taxes every aspects of the economy, it's not limited to gambling alone, so I believe that what is applicable in other industries regarding taxations is also applicable to gambling. Normally if you have a problem with your gambling company, what you need to do is report them to the appropriate authority. In my country we have EFCC (Economic and Financial Crime Commission) I believe that they can give the gambler justice if he has a good case against the gambling company.

[fruktik]

The answer to the question is very simple: the government is after what they can benefit from the citizens and not entirely what the citizens can get from them. They always say that they are fighting to protect the citizens rights, but what they are after is how to control and put all service providers under their watch. 
 
Anyone who has a case with a casino and the casino is licensed, I believe the person is not just supposed to relay on the government, but they can get their own lawyer and file lawsuits against the casino, as there have been cases of gamblers winning from such a case.

In recent years, people have become nothing more than cash cows for the government. Give them taxes from all types of activities and get nothing in return. Can this really be called a state governed by the rule of law? With a big stretch. In my country, everything has long since gone in a certain direction. No laws work. Just bring money to the treasury, and then do whatever you want and don't ask for anything. They've taxed you from all sides. You don't even know what to do in such a situation. Life has become too complicated and difficult, and existence has turned into some kind of burden.

[gunhell16]

Isn't there legal and illegal gambling that is called? The legal one benefits the government, and the illegal one is what the government doesn't want because the tax that should be for
the government is not benefited by them. That's why when the government of a country finds out about it, it shuts down and prosecutes it.

That's why, if we look at it literally, it's safer to play in a casino with gambling that is regulated under our government, so that at least the gamblers who play here have something to chase.

[satscraper]

Recently many countries around the world are now introducing gambling taxation on it citizens and even charging betting houses and casino's some amount of money to operate within it jurisdiction, and recently my country just introduced a 5% Revenue sharing and taking from both betting houses and gambler's winning and this news make me to ask why the government takes such money from gambler's but won't protect the gambler when their is troubles with the betting house.


Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

Taxation is from the class of perpetuate games the government uses to play with us. Thus the gambling is a good opening for any government  to have some extra taxes. We are gambling they are earning, we  gamble they buy lambos/seagoing-taxis/whatever-they-want for themselves ^{(circulation of our money, so to say}).

[lovesmayfamilis]

All money coming into the country is beneficial to the government. The taxes that the state collects from players and directly from gambling establishments replenish the treasury. Control of financial flows will be the primary reason for introducing taxes so that there is no outflow of large amounts of money from the country, and do not be deceived by the idea that the government is only concerned with protecting players; everything that brings profit to the treasury always comes first.

[mammusu]

All money coming into the country is beneficial to the government. The taxes that the state collects from players and directly from gambling establishments replenish the treasury. Control of financial flows will be the primary reason for introducing taxes so that there is no outflow of large amounts of money from the country, and do not be deceived by the idea that the government is only concerned with protecting players; everything that brings profit to the treasury always comes first.

Taxes from gambling should be able to provide significant economic benefits for the country to be used for its citizens, because indeed this revenue should be used to fund various social programs, infrastructure, and other public services, but it is also important for us to ensure that the gambling regulations implemented are strict enough to protect the public from the potential dangers of gambling, such as addiction,  fraud and other financial problems that arise due to gambling, I think the government must balance between earning income and protecting its citizens, so what you are accusing at least does not happen, of course this can be done by implementing policies that ensure gambling is carried out responsibly, such as age limits, awareness campaigns, and providing a special place for rehabilitation from gambling addiction,  I think, important for the government can minimize the occurrence of corruption which will only benefit some parties from the implementation of the gambling tax, so that taxes derived from gambling can actually be more beneficial for the community.

[Russlenat]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

I think you missed the point of what the regulators were saying. Yes, gambling winnings are taxed, but those taxes only apply to winnings from licensed casinos. When you pay taxes, you also need to declare where you won, so playing at an unlicensed casino can land you in trouble.

You're actually lucky regulators haven't investigated you yet. If the law is strictly enforced, betting on an unlicensed casino could lead to penalties. Simple rule: if gambling is taxed in your country, it means licensed casinos are regulated. So if you want to stay safe and avoid any legal trouble, stick to gambling at licensed casinos.

[Fiatless]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

Government don't give a damn about where the business you do is registered. All they care about is if you made money within the country. Most companies that offer remote jobs are not registered in my country, but we still pay taxes to the government. If you investigate the tax system of the government, you will see that they are not supposed to collect tax from so much income we get because they don't support or even protect their citizens. That's why gamblers should only choose reputable casinos because the crypto gambling Industry is not properly regulated.

[aioc]

Because we have loads of cases where gambler's win some huge amount of money and the casino refusing to pay and when reported to the authority you here such things like the casino is not licenced by them or they don't have control over the casino case, the government is only interested in the tax and not protecting the interest of it citizens.

If you're talking about online casinos and the government has no jurisdiction, then there's really nothing they can do, but if its local, then its questionable and illegal. The government should have jurisdiction, and the platform is operating illegally. All I know is that no local company can operate without a government license; the government will always tax or find ways to tax every industry and company.
If the gambling platform is running illegally, then its your call not to play in such casino, you can always charge them in court if the government failed to take action if its a local gambling platform.