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Gambling tax

Pay gambling tax?

Having to pay gambling tax will not be the first thing to come to your mind when you want to place a wager on the internet. Many people have no idea whether or not this is necessary, to what extent this is required by your government and how all of this works. Also gambling on the internet comes across as rather anonymous, which might make one think that no one will even notice when you have a big win online. In many cases it is true that nobody will see what happens online, but you certainly can’t be sure of that. Also the tax authorities may not agree with what you are up to, and that of course wouldn’t be a very decent thing to do. Therefore it is recommended for lovers of online casino games to get some more information about when to pay gambling tax and how exactly this is done. We have tried to give as much information as possible in this article for you to learn about this subject.
Gambling in land based casinos

When it comes to gambling at a casino that is under the control of your national government then you generally won’t have to worry about having to pay gambling tax. In many countries this means that you won’t have to declare any of your winnings as they are considered tax free. It would of course be absolutely insane if you had to pay gambling taxes while you just played at a casino that is controlled by your own government. This whole thing works rather different when you are playing on the internet. For pretty much anyone, an online casino is in no way controlled by your government. So obviously, a very common question among lovers of online gambling is: when do I need to pay gambling taxes after winning something at an online casino? We will try to explain that in this article, so that you know how this is officially arranged and how it works from a more practical point of view.

Gambling on the internet

Firstly, winnings from an online casino are seen as income by a government. Often this is regarded as game of chance winnings from abroad. In that case it would need to be handled the same way as when you win a nice amount in a casino in Monaco, Las Vegas, or anywhere else abroad. These winnings may need to be declared at the tax authorities in your country of residence, but that entirely depends on which country you are from. For example in the Netherlands you need to declare all winnings over a calendar month that accumulate to more than 454 euro. You can deduct the deposits from the withdrawals, which can often be found in the transaction history in your account balance. A reliable online casino may also be willing to figure this out for you. This overview would have to be presented to the authorities, after which they can check how much you won. In the Netherlands you need to pay gambling tax of no less than 29% of your winnings. Nevertheless you will undoubtedly have a very decent amount left to keep for yourself!

Practical point of view

When you manage to get a nice win at an online casino then it is possible that you are officially required to pay gambling tax. An online casino will generally not do this for you, not will they give any information to your government about your account. Whether or not you decide to pay gambling tax is entirely up to you as a player. It wouldn’t be the first time that a winner at an online casino decides not to declare anything to the authorities and gets away with it. But financial institutions such as banks are often required to inform the government about suspicious transactions, so if you win a decent amount then it may very well be noticed. It is entirely at your own risk to decide whether or not you will pay gambling tax. On the website of Yggdrasil casino we try to give as much information as possible on the subject, but to be sure it is always a good idea to get in touch with the tax authorities in your country of residence.

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