Should Online Casino Winnings be Taxed?
Casino Winning Tax
There’s a lot of countries around the world that tax winnings made from gambling. But should they or are countries like UK and Australia correct in not taxing individuals who earn money from online casinos? In this post, I’ll try to answer the question with some reasons.
Games of Chance
It seems very harsh to tax winnings when it’s commonly accepted that most earnings from a trusted online casino Malaysia are due to chance. Unlike a regular job which provides steady and guaranteed earnings, gambling is largely chance and players are not guaranteed anything. In fact, if players don’t gamble responsibly, they can lose more than they can afford. I think you can only tax winnings on something that is a job or expertise. Games like slots are unpredictable so you can’t tax a player when they win.
Tax Rebates on Losses?
Most self-employed individuals can offset business losses on future years, are the governments really going to do this when individuals lose at gambling? Of course not, so how can they possibly tax winnings? This would be double standards. Plus, can you imagine the logistical nightmare of processing losses? It’s laughable and never going to happen.
Finally, most online gamblers only play for fun. Few players dedicate themselves to keeping accurate records. To attempt to regulate and tax winnings on gambling requires individuals to maintain and update their records. This is impractical, to say the least. Players would need to use an accountant or invest in bookkeeping software. Considering many players that gamble lose and even those that win take time, it seems unreasonable to ask individuals to do this.
Clearly taxing winnings made from online casinos is unfair and impractical. It requires too much time and admin from players and shows a hypocrisy of governments. Unless the governments want to offer tax rebates on losses, it seems ridiculous to attempt to tax winnings from online casinos.
If you’re new to online gambling you could be forgiven for thinking video poker and regular poker are the same.