Do we all know the tax rules on gambling winnings in our country?

[Floxynice]

Honestly, I do not know the gambling tax rules in my country since the situation is a bit complicated. The gambling rules, including taxes, are decided by both the federal and state governments. To the best of my knowledge, the major focus when it comes to taxes is on those in the gambling business. I mean the gambling operators who pay the taxes, including excise duties. So far in my country, only one state charges a 5% withholding tax on gamblers' winnings. For the other states, I can't tell if there are any deductions from their winnings.

[JiiBs]

What do you think, should gambling winnings be taxed, or should this kind of tax be abolished and the government should collect more from casino operators instead?

Honestly users have also losses in casino. They taxed when you win big but dont include taxes on losses. For me this should be incorporated too as not all gamblers always win. Or only put the taxes on operators cause if we summed up all the wins and losses from players we can assume that losses inflicted more than winners. Meaning more profit for them.

Gambling wins are seen as profit which makes them taxable as opposed to losses. The casino as well is always being taxed by the government. There isn’t any government that would legalize gambling and not go about to tax the casinos considering the income that is pulled in by these gambling operators. It’s just going to be bad business over and over.

Tax on wins is what’s hardly done everywhere though, some jurisdictions apply an indirect taxation on these kind of activities.

[lombok]

What do you think, should gambling winnings be taxed, or should this kind of tax be abolished and the government should collect more from casino operators instead?

Honestly users have also losses in casino. They taxed when you win big but dont include taxes on losses. For me this should be incorporated too as not all gamblers always win. Or only put the taxes on operators cause if we summed up all the wins and losses from players we can assume that losses inflicted more than winners. Meaning more profit for them.

Gambling wins are seen as profit which makes them taxable as opposed to losses. The casino as well is always being taxed by the government. There isn’t any government that would legalize gambling and not go about to tax the casinos considering the income that is pulled in by these gambling operators. It’s just going to be bad business over and over.

Tax on wins is what’s hardly done everywhere though, some jurisdictions apply an indirect taxation on these kind of activities.

In some occasions, governments are actually known to charge casinos tax because of immense revenue potentials. It is definitely hard to collect taxes among winning players in comparison to tax collection among business owners. Indirect taxation is a way to keep the cash flow, without all the inconvenience of tracking each little win of players. But this has probably only been extended to brick and mortar casinos, online casinos are unlikely to be impacted.

[junder]

Previously what I thought was that the winnings we get (players/visitors/users) should not be taxed, because this tax should be the business of the casino itself so no matter how much the amount of winnings obtained by the player should be free of tax, including small winnings. The winnings that we get are entirely ours and however it is more logically exempt from taxes, including the casino itself which in my opinion has no right to deduct the amount earned by the player.

[TedMosby]

I come from a country where gambling is illegal, so I don't know how gambling tax works. But if what you are saying in this thread is true about how gambling tax works, I agree that the gambling tax is unfair.

It should simply be based on the gambler's net profit. If it's positive, then it can be taxed. If not, then don't tax them.

However, if winnings must be taxed (to keep their revenue), I think the one that should pay the gambling tax is the casino. They should cover all the winnings tax of their users. They can use the profit they made from the losses the gamblers have faced.

Example: 10 losses, 1 win. During those 10 losses, they should be able to take a portion of the profit they made from the gambler to compensate for the next win. Even if it's a big win, it should not be a problem because it can be cross-subsidized by other users.

[eisen33]

Previously what I thought was that the winnings we get (players/visitors/users) should not be taxed, because this tax should be the business of the casino itself so no matter how much the amount of winnings obtained by the player should be free of tax, including small winnings. The winnings that we get are entirely ours and however it is more logically exempt from taxes, including the casino itself which in my opinion has no right to deduct the amount earned by the player.

It seems to me that if a casino operates legally, it already pays all the required taxes. If I understand correctly, casinos pay substantial taxes to the government. That's why I don't think it would be fair to impose an additional tax on players' winnings. But looking at how governments tend to operate, they are constantly looking for ways to introduce new taxes or increase existing ones. So I wouldn't be surprised if, in the future licensed casinos are required to apply some kind of tax on players' winnings.

[danherbias07]

Previously what I thought was that the winnings we get (players/visitors/users) should not be taxed, because this tax should be the business of the casino itself so no matter how much the amount of winnings obtained by the player should be free of tax, including small winnings. The winnings that we get are entirely ours and however it is more logically exempt from taxes, including the casino itself which in my opinion has no right to deduct the amount earned by the player.

I agree. They are already taking away loads of money from the gambling sites or the physical casinos. Why take more from the players? I thought it wasn't happening here in our country, but it does, and when I realized how cruel it is for the gamblers, that made me shift to an offshore gambling site just to have freedom from taxes.

Just imagine going through 2 bets just to double your money. It means you will have to get through 2 risks, or else you will lose. Why? It's because the taxes are hindering you from winning the first time. They don't want you out in one bet. They want you to stay and keep on gambling until you lose it all.

[Wakate]

Previously what I thought was that the winnings we get (players/visitors/users) should not be taxed, because this tax should be the business of the casino itself so no matter how much the amount of winnings obtained by the player should be free of tax, including small winnings. The winnings that we get are entirely ours and however it is more logically exempt from taxes, including the casino itself which in my opinion has no right to deduct the amount earned by the player.

It seems to me that if a casino operates legally, it already pays all the required taxes. If I understand correctly, casinos pay substantial taxes to the government. That's why I don't think it would be fair to impose an additional tax on players' winnings. But looking at how governments tend to operate, they are constantly looking for ways to introduce new taxes or increase existing ones. So I wouldn't be surprised if, in the future licensed casinos are required to apply some kind of tax on players' winnings.

It is fair enough for casinos to demand additional taxes from their players which also depends on the country you are living.
If you are living in the United States or living in United Kingdom, you will understand that it's your duty for you to pay tax.

Casinos have their own different taxes they are paying the government for their operations and users also have their own taxes to pay to the government. This taxes will be different from what casinos are paying. You can be taxed based on your gambling winnings and there is a way this can be calculated depending on the country you are staying.

[Pandu Geddon]

It seems to me that if a casino operates legally, it already pays all the required taxes. If I understand correctly, casinos pay substantial taxes to the government. That's why I don't think it would be fair to impose an additional tax on players' winnings. But looking at how governments tend to operate, they are constantly looking for ways to introduce new taxes or increase existing ones. So I wouldn't be surprised if, in the future licensed casinos are required to apply some kind of tax on players' winnings.

It is clearly unfair for casino customers who win a certain amount of bets and are still taxed on their winnings. The rule is clearly disadvantageous for gamblers, but who knows, we do not know how the government views the opportunity to generate revenue from gambling taxes. 
If winnings are taxed, why are losses not insured by the government?

[Finestream]

If winnings are taxed, why are losses not insured by the government?

Then that is just an offset, but the thing is, I do not think the government would allow that. It is not just about making it fair for gamblers, because the government could lose money from that. Since most gamblers lose, what will happen then, will the government act like insurance? That is not how it goes.

The government does not usually make things complicated when it comes to earning. It is always in their favor.

So what I am trying to say is that they do not really care about your losses, but they care so much about your winnings because that is a tax revenue opportunity.

[cryptoaddictchie]

It's unfair, right? But let me tell you this, when a person wins in a casino it is already considered as a form of income basically because it means your money increases. Like receiving a salary or a profit whether if it is from investment or business. So, why losses are not tax?

What I meant is the losses not considered in the consideration of the taxes. Like when computing fot taxes on your gain, it should be reduced with regards to the losses you incurred not only based on winning. So gamblers can loosen up their losses by also incorporating yhe taxes via losses too.

Like example you loss $10k on your account then you gained $15k. The tax computation should based on $15k - $10k = $5k thats should ve the basis of the taxes not directly on that $15k worth of winning.