How to avoid paying taxes on your casino winnings
In general, punters are required to give a certain percentage of their winnings to the government in a form of tax. It is mandatory and not confined to casino winnings only. Horse races, off-track betting, lotteries, game shows, and sweepstakes are also taxable.
The good news is gambling in that online gambling is not taxable – although it still depends on which location or country you are in, online betting is not considered taxable. Verovapaat kasinot or tax-free casinos which are considered legit are popular because players can enjoy all their winnings.
What is a tax-free online casino?
Tax-free casinos simply mean that the player will get their winning money in full and are not obliged to pay taxes. In some countries particularly in the US, it is mandatory for the players to give 24% of their winnings depending on the site because it is stated in their government that any money that the bettor wins is counted as taxable income.
However, the countries of the EU and EEA selected online casinos to offer tax-free betting sites on account of the EU legislation. It states that all members of the EU are autonomous and are given the freedom to govern their gambling services considering that they follow rules under the treaty on the Functioning of the European Union (TFEU).
There are two types of tax-free gambling sites.
Look for casino sites from abroad particularly sites based in Europe, Japan, or in Canada. The majority of the virtual gambling from these countries is taxed free therefore all your winnings from them are not subject to taxation.
The free-play casino is a game offered to the player in a form of a credit in a slot machine to win real money. Your winning is given to the player to use or to play with tax-free.
Advantages of betting in a tax-free online casino
One obvious reason is the player can keep all the winnings and they can enjoy betting anytime without worrying how much the net payout will be after winning a game. High rollers prefer to gamble is a site that is generously giving their players jackpot prizes.
Second, Tax-free casinos do not put the names of the players on their site and the latter doesn’t have to put their personal information upon registering to the site thus giving them privacy.
Third, currency exchange for players living in another country is no longer bothersome because it is automatically done.
Fourth, these wagering sites are 100% safe because they are fully licensed by the EU/EEA which guarantees the safety of the players.
And fifth, if you hit the jackpot then it’ll be a celebration of life.
Even though these sites have a lot of edges, there are also a handful of drawbacks that you must be aware of as well.
First, some betting sites might not forever offer this benefit depending on the legislature which gives licenses to the betting site. Now if the jurisdiction doesn’t allow tax-free benefits because of its location, then it can change.
Second, bonuses offered might not be that big compared to taxed betting sites.
There are a few setbacks of these betting sites but very essential. Hence it is advised to review the site first before giving your Bank ID.
Finding the best tax-free online casino
It can be challenging to find the best tax-free betting sites because there are not too many of them and the majority can be found in selected locations. However, there are some pointers players can check once they found a tax-free casino site.
- Check if the betting site is fully regulated and has a proper license. This ensures that it is safe to wager on this site.
- Know the bonuses the site offers. If they offer no registration and no deposit, then it is much better. You can save more money and use them to play more or keep it.
- If the site offers free play, grab it. Free play as mentioned is advantageous to the player because one can try out the casino site without using real cash.
A tax-free betting site without registration
Considered one of the best combinations because players can skip the hassle of signing up and revealing one’s personal information. As mentioned again, this type of betting site promises anonymity for the player. Due to this matter, it needs payment options such as Trustly, Zimpler, or Brite wherein the site simply requires the Bank ID of the player to be automatically signed up and identified by the EU/EEA.
List of countries where players are not taxed on their gambling winnings:
- Czech Republic
- The UK
Countries without online gambling tax:
- The UK
It is a fact that there are many benefits one can get from betting on tax-free casino sites especially if you wanted to keep all your winnings. It is tempting and encourages players to wager more. However, it is advised that one should gamble responsively.