Laws around tax on earnings from gambling are complex. It differs from one country to another so it’s important that residents do their own research to find out what is the law in their own country. As biased as we may be, we strongly think that it is wrong to tax gambling winnings and will explain why in this post.
Difficult to Regulate
The first challenge a state has is regulating and monitoring people who gamble. It’s a huge admin burden on individual citizens to document and record any winnings they may get from online bonuses Malaysia. Realistically, how can governments expect citizens to treat a fun past-time so strictly? Furthermore, people are often in company or drinking alcohol when they gamble so to expect them to keep detailed records is silly.
What About Losses?
Secondly, if the government expects to tax us when we win, what about when we lose? Most forms of business can offset any losses or claim tax refunds from the governments. To avoid being hypocritical, the government should offer this to those who lose at gambling. But we know this won’t be the case as it’s a logistical nightmare. Moreover, governments are already taxing the profits of businesses’ that operate in the gambling sphere.
Taxing Money That’s Been Taxed
Finally, double taxation is clear as day if they intend to tax people who get lucky at casino games. Practically all citizens who win money when gambling are spending money that has come from their payslip. They’ve already been taxed to arrive at their net pay and now they’re being taxed again when they win money that was achieved through a simple wager.
As you can see, there are common sense reasons for countries to not tax individuals who win on gambling. This is an area we will continue to monitor in the future as we hope places take stances similar to those of the United Kingdom.
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