Do I have to report my winnings from online gambling?
Online gambling has exploded in popularity in recent years, and players have a wide selection of sites to pick from. Some exclusively provide certain kinds of gambling (like play bingo, poker, or betting), whereas others provide a broader range of options.
You don’t often ask yourself this question when you’re just having fun and not winning a great deal of money. When you strike it rich on either slot machines or live dealer games, however, the question arises: do I have to pay taxes on my winnings? If you need answers that are particular to your country of residency, we strongly advise you to research its laws.
Do I have to pay taxes on my online casino winnings?
We all know that some tax systems may be difficult to understand and come with a lot of paperwork to complete. We’ll make things as easy as possible for you. To begin with, it makes little difference whether you play in a foreign or licensed online casino.
What you should be aware of is that wins from games of chance are not subject to income tax. Why? Because these prizes are regarded as exceptional. You must also be aware that if you win a large sum of money, you may be required to pay taxes on the increased worth of your own assets as well as the investments you made with it.
Finally, if you are deemed a professional player, you will be required to pay taxes on your earnings.
When do I start considering myself as a “professional gambler”?
The official articles on this subject are still a little hazy. It basically states that since you are considered a professional player, your normal earnings will be taxed. Whether you like it or not, if gambling is your primary source of income and you earn handsomely from it, you are called a professional gambler.
Of course, a professional poker, bridge, or horse racing player / gambler is easy to see. Things may become a little more difficult when it comes to internet casinos. If you have any questions regarding this, we recommend speaking with a tax professional.