If you are a relatively new entrant in the Casino business, you must have wondered at some point what being a Professional Casino Player is like. How much money do they actually earn? Do they pay taxes on the money they gamble and the winnings they earn through their trade?
To assuage such queries, we have prepared this article where you will get all the necessary information on gambling tax. You can also check out Starburst free spins no deposit slots.
Gambling Tax in the United Kingdom
Fortune really smiled brightly on the casino players of the UK because they do not have to pay any tax on their earnings at all. UK gambling earnings are totally tax-free, and this is applicable for both online casino sites and offline casinos.
So professional casino players from England, Scotland, Northern Ireland, and Wales take home the entirety of the money they earn from poker, roulette, or blackjack. Players from the Republic of Ireland also get to enjoy this benefit.
However, while professional casino players do not have to pay tax on their winnings, there might be other forms of tax.
These are the taxes casino players might have to pay, depending on circumstances:
- Their tournament appearance fees will be taxed.
- If they leave their winnings as part of their legacy to someone, it would be subject to the inheritance tax.
- If they gift a part of their winnings to someone, it will be subject to the gift tax.
- Any interest earned from the gambling winnings will also be considered for income tax.
Tax Returns and Bank Withdrawals
When professional casino players withdraw their winnings to the bank account, they don’t have to pay any tax. They also do not have to declare their casino winnings when they are filing tax returns for the financial year.
The tax-free policy also applies to tourists and visitors to the UK, who will be able to take home all their winnings in online or offline casinos. They might, however, have to pay taxes because of the gambling laws of their own country.
Gambling Tax in Other Countries
Many countries in Europe and North America offer complete tax relief to their professional casino players. However, some countries tax certain forms of gambling income, like in Germany, you don’t have to pay tax on casino winnings, but 5% tax is liable on sports betting stakes.
In the United States, federal tax laws impose a reasonably high amount of taxes on the winnings of casino players. After that, each state imposes its own betting tax, which becomes mild or harsh depending on which state you are playing in.
Thus we have concluded that professional casino players in the UK do not have to pay any tax at all on the money they win gambling. So if you ever needed any extra motivation to pursue a full-time or part-time career as a professional casino player, this right here is an excellent incentive.