Is taxing gamblers meant to raise revenue or discourage gambling?

[Darker45]

I guess the main point is that it's an additional income on the part of the winner. Therefore, it should be taxed. The government doesn't care about people's expenses. They don't care about individual spending. They only care about money that's going into your pocket. That's taxable. If it's money coming out of your pocket, they don't bother.

If this setup is strictly implemented-- because gambling winners aren't even declaring their winnings-- and it backfires, then perhaps it's still a good thing as people are less exposed to the dangers of gambling.

[freedomgo]

I guess the main point is that it's an additional income on the part of the winner. ...

How much is the normal income supposed to be if you're calling it “additional income”? I know there's a threshold for this kind of tax, but still, it doesn’t make full sense.

The way I see it, why tax gamblers when the government is already collecting taxes from the operators?
My suggestion.. instead of taxing the players, just increase the tax rate on the operators.

[Fivestar4everMVP]

I guess the main point is that it's an additional income on the part of the winner. ...

How much is the normal income supposed to be if you're calling it “additional income”? I know there's a threshold for this kind of tax, but still, it doesn’t make full sense.

The way I see it, why tax gamblers when the government is already collecting taxes from the operators?
My suggestion.. instead of taxing the players, just increase the tax rate on the operators.

This is exactly what I pointed out in my previous comment on this thread and even call the government greedy because it makes no sense to be collecting tax from the operators and also be collecting tax from the gamblers as well, and if we are going to be honest with ourselves, the taxing doesn't end there.

After you the gambler must have withdrawn the money to your bank account and visit the super market to pick some stuffs you need in your home or personally, you are still going to be paying VAT (value added tax) on every items bought, this is nothing but day light robbery, no wonder the poor keeps getting poorer while the rich keeps getting richer, because rich people have knowledge and connections and know how to bypass some of this taxes.

[Popkon6]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

In gambling, taxes are usually imposed on those who win, because the government of the country will never bother to recover your lost money. But as soon as you start earning, the country's system will become strict on you and take money from you, in this case the gambling situation is easy and the gamblers are supposed to move away but in no way can the gamblers be moved away from this situation.
Those who gamble regularly never see these things negatively, which is why they have faced this situation from the beginning, it is normal for them.

[Sanitough]

In gambling, taxes are usually imposed on those who win, because the government of the country will never bother to recover your lost money.

In that case, they should be taxing the casinos, not the gamblers. Kasi in the long run, casinos will always be profitable, but gamblers are not. What about all the past losses we’ve had? The government didn’t contribute anything to cover that, so why do we have to pay them when we win?

I bet most gamblers, even if they get lucky sometimes and win big, if you add up all their past losses, the total would still be negative.

[Free Market Capitalist]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

None of what you said. Unfortunately modern states are a monster that spends more and more, so they have to get the money from somewhere. On the one hand they get it from inflation, but voters don't like to see prices going up too much. On the other hand, they take it out of taxes, which voters don't like very much either. And the third is debt, a resource to which they resort a lot because it is the least noticeable. Our children and grandchildren will pay for it. The fact is that with a combination of these three factors they do not have enough, and they continue to spend more than they receive. More and more and more. So they keep producing inflation, keep getting into debt and keep raising taxes. If they discover a niche where they did not charge taxes before and now they can, they impose them.

[Kelward]

I guess the main point is that it's an additional income on the part of the winner. Therefore, it should be taxed. The government doesn't care about people's expenses. They don't care about individual spending. They only care about money that's going into your pocket. That's taxable. If it's money coming out of your pocket, they don't bother.

If this setup is strictly implemented-- because gambling winners aren't even declaring their winnings-- and it backfires, then perhaps it's still a good thing as people are less exposed to the dangers of gambling.

Governments basically makes money from taxes so anybody, organizations or companies that makes profits they are entitled to a share. So it's not surprising that they will tax gambling wins, it's not because they want to discourage people from gambling but they want to take their own cut. Every gambler is left to caution themselves against irresponsible gambling, if they lose they're on their own but when they win it'll be taxed. I think that government taxing of gambling wins should depend on a county's gambling laws.

[davis196]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

Is this a rhetorical question? The answer is obvious. Both tax revenue and discouraging gamblers are the main goals of gambling taxation.
Gambling winnings should be taxed as any income or profit. Some countries don't tax the winnings, they tax the bets. Different countries have different tax policies in regards to gambling. Discouraging the gamblers from betting money might be the government's goal, however I don't believe that this actually works. The hardcore gamblers don't care that much about their profits being taxed or not. I also don't think that most governments are very effective at gathering their taxes.

[KiaKia]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

It's an act of greed, because casinos are capable to pay any tax needed, if any gamblers are paying tax in their country then it's wrong, gamblers are not supposed to be paying taxes, I've never seen such happened, atleast not in my own country but the sound of it makes me want to vomit.

Sorry to say but if your government is asking for tax from gamblers then they sucks, your government is a very bad one.

Gamblers lose money most of their times, how can they expect them to pay tax after so many losses before they eventually winning? It makes no sense at all, some gamblers lost a lot and what ever they win later won't even be able to cover the past losses.

[michellee]

Governments basically makes money from taxes so anybody, organizations or companies that makes profits they are entitled to a share. So it's not surprising that they will tax gambling wins, it's not because they want to discourage people from gambling but they want to take their own cut. Every gambler is left to caution themselves against irresponsible gambling, if they lose they're on their own but when they win it'll be taxed. I think that government taxing of gambling wins should depend on a county's gambling laws.

Government want to take benefit from the income of the people. With gambling business grow and many people win, they think that it is necessary to impose tax to the gamblers who win. If those who win from gambling can obey the rule to pay the taxes, that will give more income to the country. The government can develop their country with the money from the tax.

The government need to watch the use of the taxes so that can distribute to the right place. But we know that many corrupt officials in the government so it requires decisive action from the government to take care the money.

[Mpamaegbu]

...Yeah the sad part is when you lose you dont given money, they only taxing winning gains on casino and dont mind if you keep losing cause honestly its just business.

Sad indeed but that's a reality! You win for all to share but you lose for yourself alone to bear.

That goes to explain that nobody wants to associate with failure. Remember the expression – failure is a bastard but success has many fathers. Just like light to insects, success keeps attracting.

This is one business youll like to have as we all knew that theres a lot of gamblers everywhere.

This is because gambling gives man hope. That's why losers keep going back to bet some more. It's a flourishing business as old as man has existed. It will continue to exist and flourish.

[bakasabo]

Imo the only purpose of taxing gamblers is to follow «income tax» compliance. I dont think that the goal of any tax is to discourage from something. As government gain funds for budget from taxes, they definitely not plan to discourage citizens from something by collecting taxes. Dont forget that gamblers pay tax not from every win, but when their winning are higher than stated in gambling law amount.

I did agree too that the purpose they tax gamblers is not to discourage them because if that's the purpose, it's not even the tax method they will use to achieve it. They want to generate revenue for the country, but In my opinion, gambling is not a source income, so why charge income tax on what's not a reliable source of income? Although in my country, there's not be any tax on gamblers.

Are you sure that there are no tax on gambling wins in your country? I think every country has it, but the different is that the amount you need to win before you are forced to pay tax. Usually you need to win a total of several tens thousands, before casino will information about you to tax authorities. Usually that tax is progressive. The more you win, the more tax you pay. Imo this is done, as people who gamble and win tens and hundred thousands, have gambling as their source of income, as a work. Its logical for them to pay income tax. Those who win little, its clear that they do it for fun, not constantly, so they should not pay anything as tax.

[o48o]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

Well it's not supposed to encourage gambling, that's for sure. In some countries taxing something harmful is combatting the harmful effects on society. With tobacco and alcohol it's the physical medical issues that cost countries ton of money, as their workforce isn't efficient enough and because of medical bills in countries that have free medical healthcare.

Same goes with the problem gambling, as government want to protect these people because of 2 reasons. One is because of empathy, and second is because creating problems for their workforce has net minus effect to their bkt

Then there's obviously the fact that government tax from everywhere where money is involved. Some things are more sensible to for taxing, depending what the government's political leaning is.

But if they really would want to discourage gambling, they would start by banning advertisement of it, or banning it all together.

[GigaBit]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

Well it's not supposed to encourage gambling, that's for sure. In some countries taxing something harmful is combatting the harmful effects on society. With tobacco and alcohol it's the physical medical issues that cost countries ton of money, as their workforce isn't efficient enough and because of medical bills in countries that have free medical healthcare.

Agreed, in some countries, the government has a view where they want to discourage gambling indirectly. Just as they increase taxes in drug control, the same is true in the case of gambling. But those countries can certainly earn a large part of their revenue from drugs and gambling, which is why they do not impose any direct ban. Moreover, the regulators can very well assume that if they do not allow gambling platforms, their country's money will go elsewhere and they will lose revenue. Observing such negative aspects, they rather try to allow gambling. They will neither ban this industry nor encourage it, which is why they try to increase taxes. If taxes are increased on gambling platforms, it is not that gambling platforms will close their business, but gambling businesses there will be discouraged.

[xenomorfo]

In my country, winnings are taxed and for a few years they have also increased the percentage rate.
From 1 October 2017, winnings up to 500 euros are taxed at 8% and for winnings over 500 euros they are taxed at 12%.
I don't think the purpose is to deter, but rather I think it is a way to have higher revenues from the State.
Obviously this situation varies from country to country, I don't think it's fair, you have to be incredibly lucky to get a good win and then see that taxed too!

tell me, in Italy they even tax the air you breathe at times
really absurd, if i remember correctly the taxes are already paid by those who take the competition or in any case the state monopoly on gambling collects taxes with the game, this further robbery really makes you understand how much they are thieves

[Japinat]

tell me, in Italy they even tax the air you breathe at times
really absurd, if i remember correctly the taxes are already paid by those who take the competition or in any case the state monopoly on gambling collects taxes with the game, this further robbery really makes you understand how much they are thieves

We can always criticize them, but at the end of the day, they’re the government, they make the rules, and we just have to follow. So there’s really nothing we can do to stop them from taxing us. The only way not to pay is to keep losing, which is something none of us want.

I do wonder though, which one has a lesser penalty.. gambling on illegal casinos, or gambling on legal ones but not declaring your winnings for tax purposes.

[Beparanf]

tell me, in Italy they even tax the air you breathe at times
really absurd, if i remember correctly the taxes are already paid by those who take the competition or in any case the state monopoly on gambling collects taxes with the game, this further robbery really makes you understand how much they are thieves

We can always criticize them, but at the end of the day, they’re the government, they make the rules, and we just have to follow. So there’s really nothing we can do to stop them from taxing us. The only way not to pay is to keep losing, which is something none of us want.

It’s true that’s why we should elect a rightful politician to lead the government so that our taxes will be use properly. Paying taxes is okay since this what makes country run. It’s just excruciating to see corrupt government eager to collect tax just to stash it personally.

I do wonder though, which one has a lesser penalty.. gambling on illegal casinos, or gambling on legal ones but not declaring your winnings for tax purposes.

Tax evasion is much greater crime than playing on illegal casino. I think illegal casino is the one will suffer once bust while players will typically go away.

[summonerrk]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

The thing is that in this tax the state, according to officials, is doing two useful things at once. Firstly, it shows people how expensive gambling can be because of the tax (I often see that in countries it is about 15 percent, and this is a shock) and the second goal the state pursues is to increase the inflow of money into state funds.
But unfortunately, this money is not used to build hospitals for gambling addicts. This money goes to who knows where: perhaps to cars and houses for officials. And so it turns out that the state does not care about ordinary gamblers.

[Sandra_hakeem]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

What's the purpose of the government getting their due taxation from a gambler's win? Is this supposed to be a question? Anything revenue, wherever it's coming from, of whatever course it's meant to serve, the governments are obliged to tax before returns. If that discourages you to gamble in some type of ways, then you're right -- quit!

Would it actually boost government revenue, or could it backfire and discourage people from gambling altogether, knowing it’s already hard to win and when they finally do, they still have to pay taxes?

Are you being serious right now? Let's do a quick math so you can see for yourself. If 2 million people contributed a dollar each (which is not so far-fetched), you'll have $2 million in cash. Now imagine what return gets back to the government after milking you of $10 as tax for a $500k win.

[bitgolden]

By nature, businesses are taxable, so it makes sense that casinos should be taxed. But in some countries, they also tax individual gambling winnings. That got me thinking, what’s the real purpose behind that? Most of us gamblers are overall losers anyway, so what impact does taxing the winnings really have?

I think it's a mix of both, more focused on the latter. Increasing taxes is a good way of deterring people from gambling or buying export items, as we often see governments imposing high taxes on certain things. But there is no doubt the government also benefits greatly from these taxes and in a way it doesn't really hit the poor because these taxes are usually imposed on luxuries like gambling, cars, etc.

Then I also feel that if they really wanted to discourage people from gambling why not just ban it once and for all. Why earn money on something that can trouble the youth. So in some sense, governments do want these gambling houses to operate because a massive part of their revenue comes from it.