Tax: everyone has to pay it and, unlike a certain President of the United States, the fast majority of us don’t have the resources to do the creative accounting required to avoid it. It remains a mystery to many of us, who either see money taken apparently at random from our pay cheques, or disappear as a lump sum at the end of the year.
One of the most mysterious things related to tax is how it relates to gambling – are you required to pay tax on your winnings from gambling? Is it sometimes better to win less so you pay more? If you do have to pay tax, at which point do you count it; after every win, when you leave a casinos, or cumulatively over a year?
Luckily for you, your good friends over here at MobileSlots4U happen to know a thing or two about how gambling taxes work and we’re here to share that knowledge with you. So strap in, and enjoy our quick guide to how much you can expect to spend on taxes when you gamble.
No Tax On Gambling In The UK
Let’s get straight to business with the best of the good news. If you gambling in the UK – in whatever form that might take – you’re not going to pay even a single penny in taxes to the government. Realising that the risks associated with gambling don’t make it anything close to resembling a reliable income, the HMRC has decided that all winnings earned from sports betting, online casinos, poker games, bingo or lotteries are exempt from taxation.
Yup, you read that right: that includes online and mobile casinos. This even counts for online and mobile casinos which are based overseas – while the operators themselves may have to pay the Place of Consumption Tax on their revenues from UK players if they’re based abroad, the players don’t need to pay a penny!
It hasn’t always been this way and historically there have been a number of different taxes levied against taxes through the history of UK gambling. Yet, since 2001, UK betting duty has been abolished, clearing the way for tax free gambling. Every pound and penny you make through any form of gambling in the UK stays in your pocket.
Gambling Taxation Elsewhere in the World
Most other countries in the world are as enlightened as the UK when it comes to gambling taxation, with a few surprising and notable exceptions. Even within the EU, gambling taxation is still an issue handled by individual member states, which is why you end up with situations where countries like France will tax people 2% on poker wins and 7.5% on sports and horse racing, Greece will tax 10% on all lottery wins and Holland will tax a hefty 29% on lottery wins over €454.
The EU country set to make the most from gambling tax is Slovenia, where a lottery win over €4000 is going to set you back a staggering 50% of your winnings! Outside the EU you’ll find pockets of gambling taxation – like Nigeria’s flat rate of 20% on all winnings and South Africa’s 6% on horse races, but you’ll find generally that no tax applies, and will only apply if you’re playing in those countries, not just at online or mobile casinos based there.