SandyA
SandyA
Joined: Nov 8, 2020
  • Threads: 1
  • Posts: 1
November 8th, 2020 at 11:40:10 AM permalink
Hey,
I have a question for all the gamblers out there.
I have been to Germany, and if you win the lottery in Germany, it's all yours because you get the money "by luck," and it can't be considered a salary.
However, if you win at a casino in the US, the winnings are taxed at a particular tax rate as it is regarded as an income.
So if you win big at the tables in Las Vegas or hit the jackpot, is it taxed too, and if so, how is it done? I have seen advertisements for US recovery services in Canada. Being a Canadian who is reasonably good at gambling, I would like to know the perks and limitations of the US tax system regarding gambling.
I'm just curious and am not debating the merits of the system!
Any insights on this are welcomed!
OnceDear
Administrator
OnceDear
Joined: Jun 1, 2014
  • Threads: 50
  • Posts: 5944
Thanks for this post from:
SandyA
November 8th, 2020 at 1:27:32 PM permalink
Quote: SandyA

Hey,
I have a question for all the gamblers out there.
I have been to Germany, and if you win the lottery in Germany, it's all yours because you get the money "by luck," and it can't be considered a salary.
However, if you win at a casino in the US, the winnings are taxed at a particular tax rate as it is regarded as an income.
So if you win big at the tables in Las Vegas or hit the jackpot, is it taxed too, and if so, how is it done? I have seen advertisements for US recovery services in Canada. Being a Canadian who is reasonably good at gambling, I would like to know the perks and limitations of the US tax system regarding gambling.
I'm just curious and am not debating the merits of the system!
Any insights on this are welcomed!

I can't give you any info regarding how a Canadian would be taxed, but if it helps....
...
If I as a Brit come to the US and win big at any casino game, I would not be taxed by the US IRS (Casinio might try withholding, but there's an exemption process) and when I return to the UK, my tax authority HMRC would not be interested in taxing me. Same if I win in the UK.

If a US citizen comes to the UK and wins big here, our HMRC would not tax him, but upon his return to the US, he must declare his winnings to HMRC, so that they can tax it. If he doesn't declare it, he might get away with it. Similar if he wins in the US, but with more of a paper trail.

I expect that UK citizens and Canadian citizens are treated in similar ways. That site you linked to mentions it.
Beware. The earth is NOT flat. Hit and run is not a winning strategy: Pressing into trends IS not a winning strategy: Progressives are not a winning strategy: Don't Buy It! .Don't even take it for free.

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