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

[Findingnemo]

Even if the casino you're playing is not registered in your country still they have all the right to collect taxes from the players because you're gambling from that country but the only concern in they don't consider the loss when it comes to taxation which kind of bothers me, if they let the users to deduct taxes for their loss then it could save tons money.

I think it’s on us to pay, since they can’t collect if they don’t know we’re gambling. Like, if we’re using casinos that aren’t even in our country, and we can still access them, they really have no clue. But if we want to be law-abiding, we’ll pay willingly. But then, is that really the right thing to do?

They may not know we are gambling and let's say we gamble on crypto casino so we could withdraw as crypto but when we want to convert those crypto into fiat ever then it will become headache cause all those funds came to our banks are recorded and reported to tax agencies and they might not even ask anything if the amount involved is small but if there's every big transaction coming to our bank then it might be flagged for review and by that time all the TXs in the account might come in for question.

[Spaceman1000$]

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.

It's absurd to even fathom the idea of taxing gamblers, like who does that, so are they taxing you only win you win your bet or they will also tax you when you lose your bet. If as a country you want to tax the bet companies based on the fact that their business is situated in your country hence the need to pay tax, then that's understandable but wanting to tax private individuals on their bet is something I really find amazing. So this is like taxing both bet company and the individual at the same time.

If a government refuse to check complains of consumers concerning a particular bet company, especially when there are cases of refusal to pay customers the money they've won, sighting that they don't have a control over the bet companies, then that's insensitivity on their own part as a government, as it's the responsibility of the government to checkmate this bet companies else the company will go rogue.

[Tipstar]

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.

I don't know how casinos operate in your country but the place I'm from, casinos operate on high moral grounds. The regulated casinos that pays tax to government needs to satisfy the rules placed by the government, the largest complaint they get is not checking IDs properly for minors. They even provide pick up and drop off service to gamblers and transfer the money to the bank if they want. That's on legal ones. The illegal ones and the small gambling games too foucs on fairness and user experience as they are more closely linked to society.
There are ocassional complain from drunk gamblers but most of the time its delusional claims after loss.

[_act_]

It's absurd to even fathom the idea of taxing gamblers, like who does that, so are they taxing you only win you win your bet or they will also tax you when you lose your bet.

I do not think there would be countries that will tax lost bet.

Let me make an example for you. If you are using a gambling site and you are losing $200, and then you win $100. Your winning will not be taxed until you win in total more than $200 that you have lost.

But above all I still do not like the fact that gambling is taxed, but most gamblers are not paying tax because they are winning small amount of money while most gambling are losing if their profit and loss are calculated. So government collecting tax from bettors is not as it is in the way we are thinking about it. Only those that won huge amount of money are targeted.

But nonetheless, I prefer those countries like Australia and Canada that do not tax gambling.

[Ambatman]

The same reason they started imposing on cryptocurrency when they never wanted it
The benefit.
They can't see a cake and not want their cut.
The thing is for the government to receive tax from a casino
Then it would be strictly regulated and the likelihood of them adhering to proper gambling regulations are high.

[Kavelj22]

The thing is the government wants to have that for fills their reserve of funds and used for developing the country. They need to take the taxes from the business and people who involved in gambling industry. So that will not surprise if the government ask the winners to pay taxes.

The regulator should help gamblers who win if they get a problem from the casino that don't want to pay them. But we don't know what is behind that because the scenario is the casino can bribe the corrupt officers to protect their business and if anyone wants to take the win money, the casino will not gives them. And the corrupt officers will not do something with that case. It depends on the country situation because if the officers cares with their citizen, they will help those who wins to solve their problem. That is just my guess.

This is civilized behavior, to follow the laws and pay your taxes, but I assure you that no one will hesitate to use a guaranteed method to avoid paying taxes to the state. Especially since these solutions exist and are usually used by those who receive small amounts and avoid losing them in the form of taxes. Large amounts can also be split and sold directly as crypto on the black market. In this way, the person will avoid accountability for his activities from the authorities, will not have to pay taxes or bank transfer fees, and will sell the money at the black market price, which is more than the trading price. Don't you think these are not enough temptations for anyone to think about cheating the system?

[Jawhead999]

It's grey area, they have the right to tax your winnings and they have the right to freeze your money too because you're gambling in unregulated casinos.

They may not know we are gambling and let's say we gamble on crypto casino so we could withdraw as crypto but when we want to convert those crypto into fiat ever then it will become headache cause all those funds came to our banks are recorded and reported to tax agencies and they might not even ask anything if the amount involved is small but if there's every big transaction coming to our bank then it might be flagged for review and by that time all the TXs in the account might come in for question.

Make sure to use international exchange (no KYC P2P even better) over local exchange because government is easier to ask personal credentials from local exchange. Since the key is to avoid paying gambling tax, you need to report your gain from somewhere else, says side gigs or something like that. You still pay income tax, but at least it's cheaper than paying tax from gambling.

[Accardo]

Let me tell you the simple truth. The government is after any sector that is thriving very well and generating a lot of money. And the reason why they want to be involved in that sector is that they want to benefit from it not because they want to help regulate whatever is happening in that sector for the people involved. Gambling and Casino platforms are one of the biggest and fastest-rising industries. The government wants to be involved in gaining the free money they can get all in the name of protecting the citizens.

If the government wants high taxes, then they should perform their duties properly if not they don't deserve the tax. When we calculate how much they gain from each gambler that wins we would find out that the government gets more than they deserve yet they take it for their personal gains.

It's not just the government's duty to care for the addicts, the community and society where there cohabit also have a role to play in engaging compulsive gamblers to change for good. However, implementing taxes on casinos is as the result of funds generated in the business. Although, it's not being utilized in gambling legalized countries, but that's not enough reason to wait on them to act before helping problematic players.

Preferably, it should be a combined effort, the government help's in needed, thereby reducing the cost of caring for addicts, and also limit such urge from happening.

[Davidvictorson]

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.

I have no problem with taxation on gambling businesses. They owe it to the government and the government in turn owes it to her citizens to ensure that the taxes are use for civil good. This is the premise on which I believe that there should be taxation on gambling businesses. Also just like the case in brasil, taxing gambling businesses also have other positive benefits too such as those illegal gambling businesses will move out of the country. Those illegal gambling businesses are the places that encourages underaged gambling. If we look at it another way, we'd see that the governemnt is using taxation as regulation and the indirect effect is that illegal gamling will reduce and in turn a decrease in gambling addiction.

[coin-investor]

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.

Nobody can escape taxation; if you're living in a third-world country, expect to be taxed on everything you purchase and everything you do. By theory, the government has an obligation to its people to serve their interests, and if your government can't do that, then you have a corrupt government, and if you know that your government acts like that, then only play at casinos with a license and a good reputation, so you will not bother yourself by complaining to the government, which is futile to do.

[Yucky]

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.

I have no problem with taxation on gambling businesses. They owe it to the government and the government in turn owes it to her citizens to ensure that the taxes are use for civil good. This is the premise on which I believe that there should be taxation on gambling businesses. Also just like the case in brasil, taxing gambling businesses also have other positive benefits too such as those illegal gambling businesses will move out of the country. Those illegal gambling businesses are the places that encourages underaged gambling. If we look at it another way, we'd see that the governemnt is using taxation as regulation and the indirect effect is that illegal gamling will reduce and in turn a decrease in gambling addiction.

Like you said, it can be good, it can be bad. It can be good in the sense that if they put taxation, they should also make a regulation that casinos have to be registered. I mean, they have to be a registered business that has a monthly income stream to pay tax, which means illegal casinos won't be taking advantage of small children, they won't be ripping people off, rigging the game, they will be forced to move. And at least people will be aware that,  such casino does not pay tax, they are hiding from government, means they are illegal so people go to the one that is legal.

Which means, if a casino that is registered and pays tax, withholds a gambler's huge win, probably because they didn't see it coming that someone was going to win huge, it can involve a court case, and it can actually be treated as a proper court case. Most times, this kind of case with gamblers and casinos are not being treated properly because the government says it is not a business they recognize or is not registered under them.

So now, if the taxation will lead to a casino registering themselves, it means such cases will reduce because you know it can be taken to court, you can be sued, that can be a good thing.

Then also bad, because this is a game people play for fun. If casinos have to increase their price and you know, restructure their system, the way that you barely win because they are paying tax, like the amount of win even on low stakes, become so low, it means people might withdraw from gambling to a point.

It might help people to reduce their addiction, but it might affect the gambling industry too. It might just affect the fun of sports betting and all of that. But I hope the method being put is not just for the benefit of the government but citizens are taken into consideration too.

[retreat]

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 as far as you know every time you win you always pay taxes, but when you report a problem to your casino and the authorities refuse to provide assistance, don't you need to find out if you are being cheated all this time by the casino or if the authorities in your place are rotten? because as far as I know, if you have paid taxes, then the authorities will help you with various problems that you may face when gambling, because the role of the authorities is to regulate casinos that are under their jurisdiction, and therefore you pay taxes - if the authorities do not help you, then what is the point of you paying taxes to them.

[Stablexcoin]

It's absurd to even fathom the idea of taxing gamblers, like who does that, so are they taxing you only win you win your bet or they will also tax you when you lose your bet. If as a country you want to tax the bet companies based on the fact that their business is situated in your country hence the need to pay tax, then that's understandable but wanting to tax private individuals on their bet is something I really find amazing. So this is like taxing both bet company and the individual at the same time.

If a government refuse to check complains of consumers concerning a particular bet company, especially when there are cases of refusal to pay customers the money they've won, sighting that they don't have a control over the bet companies, then that's insensitivity on their own part as a government, as it's the responsibility of the government to checkmate this bet companies else the company will go rogue.

One way they tax gamblers is during withdrawals, and the tax is based on a certain percentage of their withdrawals. Sometimes the casino takes the charge directly from the winning of the gambler. It may look small but cumulatively from all gamblers around the world, it becomes a huge amount of money. Now they give the government the specific amount agreed between them at a given time. It could be daily tax, monthly or yearly.

What is the essence of regulation if the government cannot speak for their citizens using the casino platform? Although if such a thing happens the casino refuses to pay gamblers their earned money then what the government can do is to prevent the casino from operating in the country. Meanwhile any money there will not be returned.

[Dr.Bitcoin_Strange]

On this forum, some accusations of casino  not  paying players have been rectified and some cases are majorly the fault of the players and not the casino.
I believe that if any casino is licensed in a country, the right authority will assist the player to fight the casino if maybe the player have actually won a huge amount and the casino refuses to pay him but some online casino are operating without obtaining license from some country that there gateway is allowed.

[noormcs5]

They may not know we are gambling and let's say we gamble on crypto casino so we could withdraw as crypto but when we want to convert those crypto into fiat ever then it will become headache cause all those funds came to our banks are recorded and reported to tax agencies and they might not even ask anything if the amount involved is small but if there's every big transaction coming to our bank then it might be flagged for review and by that time all the TXs in the account might come in for question.

Yes, this is how the gambling winnings are taxed. As long as you keep the winning amount in the casino and withdraw it to an online wallet, you do not need to pay the taxes in regions where gambling and crypto are not regulated. But as soon as you convert that crypto into your local currency, the money lands into your bank account and you have to play the tax on that money. So this can be called an "indirect tax". Secondly sometimes you may have to justify the authorities the source of that income if the amount converted into fiat is considerably high.
For example, I know people who had to face legal actions when they tell or disclose that this is crypto money or gambling money (and gambling was prohibited in the country).

[madnessteat]

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 as far as you know every time you win you always pay taxes, but when you report a problem to your casino and the authorities refuse to provide assistance, don't you need to find out if you are being cheated all this time by the casino or if the authorities in your place are rotten? because as far as I know, if you have paid taxes, then the authorities will help you with various problems that you may face when gambling, because the role of the authorities is to regulate casinos that are under their jurisdiction, and therefore you pay taxes - if the authorities do not help you, then what is the point of you paying taxes to them.

It should be understood that the purpose of regulation of any industry for the state is primarily to replenish the treasury, not to protect citizens. Therefore, there is no sense in expecting the state authorities to deal with disputes between users and gambling sites. The state has neither money, nor time, nor people, nor desire to do it. So the protection of our interests even in regulated areas remains only in our hands.

[bitbollo]

In Italy we have taxation on gambling since many years.
All of these aspect have been always regulated, probably I think, since this Is the best way to collect money and taxes. Actually there Is a monopoli/platform that manage all gambling license.
I am not too much surprised that other governments are trying the same way...

[pawanjain]

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.

Your question is valid but by now it has become clear that the government is just after the money.
A lot of money is being flown out into gambling. The government is trying to reap out money from whatever they can.
You're right that a lot of gambling accusations are being raised but there are no stringent measures being taken against them.
If the government is taking money from our profits then they should also help us when we are in trouble.
It should be a two way thing but it isn't and that will only change when we raise our voices and ask for our rights.

[Slow death]

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.

Maybe I'm wrong, but from what I've seen, in most countries when they charge taxes on gambling, they are counting on charging taxes to casinos that have a license in that country and know that the casino has a physical office in that country. Because it's not just the player who pays taxes. The casino will also pay taxes, the casino employees will also pay taxes and the casino will have to respect the country's labor laws. Now, about this issue of someone winning and the casino refusing to pay and that person having no way to complain to any government. This happens when the casino does not have a physical office in the player's country.

[coinerer]

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.

According to the rules of every country, when someone crosses 18 years, he becomes an adult and then he can make any decisions he wants.  So if gambling is legal in a country it is only natural that the government would demand a tax on it. If gambling is legal in your country, your government may charge a VAT that is fair and you must pay it. Since you are old enough to take responsibility for your own decisions.  In this case you cannot blame the government.  Because you are making your own decisions. The government will not force you if you do not gamble and neither the government nor anyone else will stop you if you gamble