Do I Have to Pay Taxes on Online Gambling Winnings?

That duty was removed in an attempt to persuade bookmakers not to move their operations overseas and therefore take jobs and revenue away from the UK economy. If you gamble, and you are successful, you may have to make additional estimated payments. There are a lot of options so you should be able to find a safe, secure bookmaker with fast withdrawals and large welcome bonuses. UK Gambling Taxes

‘Betting Tax’ Explained

The Changing Gambling Scene

This is because it operates in a completely different way, making it difficult for governments to monitor and regulate, and making it impossible for them to tax. They can generate tax revenue from bookmakers and casinos, and because the gambling industry is a multi-billion dollar one, there is a lot of tax money available. This means they have to stand back and watch as their tax-heavy casinos empty because more and more people are turning to online casinos created by outside influences.

Not surprisingly, this annoys them. This means that even in countries like Canada, where gambling is mostly legal, there are plans in motion to try and change the online gambling industry. For instance, they are doing their best to actively ban online gambling unless it is offered by a locally based and locally regulated site — one that just happens to be paying tax. The same is happening in Australia, where it is actually illegal for local online casinos to operate.

Here though, they seem to be acting under the guise of problem gambling, an issue that affects more Australian than it does any other nationality. Of course, problem gambling is a huge issue in Australia, but when the government is focusing too much on online gambling sites based overseas, and seemingly ignoring the many slot machines installed in pubs and clubs, and the many casinos that litter the country, then you have to question their true motives.

If you look at the biggest gambling sites in the world, there is one thing they all have in common. They might attract customers from all over, with a large percentage of Australian, Canadian and European members flocking to their doors, but all of them are based on small islands.

This has nothing to do with the sunshine and the palm trees, and everything to do with the tax laws. They are there to avoid big corporation taxes, to avoid paying small percentages of every bet to the governments of the countries they appeal to. Betfair was founded in London and many people believe they are still located there. However, they are actually regulated by the Malta Gaming Authority, operating out of the small island nation of Malta.

The same goes for Betway and Bet And then you have companies like SkyBet, which is regulated in the Channel Islands. Away from the UK, too, tax laws and legislation do differ and it would benefit a professional gambler outside of the UK to research the specific rules and regulations within their own country. This situation has more recently changed, however. As the above table shows, where various types of gambling are legal there are a variety of different attitudes towards taxation on winnings from those forms of betting.

Do you have to pay tax on your gambling winnings? The Cheeky Punter is an ex professional online sports bettor and trader with over 15 years of experience in the industry. He has worked for a number of top bookmakers including Ladbrokes, William Hill and Coral. He's also written for a number of leading news outlets including the Guardian, i newspaper and Soccer Lens. More about him here. What is the min bet? What is the max bet? How to request odds? How do bookmakers set odds? How to change odds format?

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