Joined: 9 Jun 2020
Posts: 3
9 June 2020 - 8:16am

Tax information for online casinos

2 replies • Last post

Has anyone won a considerable amount, cashed out, and then paid taxes on it? I'm wondering about anyone's story on that if you do have one. If you ran into any problems while paying taxes on your gambling winnings ($10,000 or more)

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barbadosslim93's picture
Location: Michigan
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9 June 2020 - 4:09pm

Hey Blue, I assume you're in the US given the flag. I've never had that big a cashout to claim for gambling winnings, but it's a tricky proposition.

The activity for online betting isn't regulated for most states, but you're still expected to claim those winnings. For regulated states you'd definitely want to make sure you claim them and paying the money, as the casinos are reporting those winnings to the state and feds as obligated by law.

For unregulated winnings... well, I don't know. I mean you're obligated to claim and pay. The company is offshore though and not reporting the amounts to the feds, so you wouldn't have them reported on that end. I'm not saying you should break the law, but I personally would have a major hard time claiming winnings on something the government deems illegitimate. I'd have to pony up and face the consequences if that ever got discovered though. That's me personally.

Of course, the call is yours. If you're going to be claiming those winnings, I'm sure the government will be more than happy to take that money.

CL-Ed's picture
Location: Sydney
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9 June 2020 - 11:56pm

Where I live gambling winnings are not taxed unless you're a professional gambler.

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