Taxes on your gambling winnings

Do you pay tax on our gambling winnings?

Actually, let me re-state this.  According to the laws of your country of residence, are you required to pay tax on any gambling winnings?

In Australia, all winnings from gambling are tax free (unless you’re a professional punter).  Doesn’t matter what the bet is; horse races, sports, casino games, the lottery, etc – you get to keep the lot without having to hand over any of it to the government.

And fair enough too I reckon.  After all it’s not as if they (the government) haven’t already dipped their snouts into this particular trough…having taken a decent percentage of the operators’ revenue (ie money the players have contributed!) as gaming taxes already.

Another bite of the same apple would be unfair I think. It would probably also prompt most Australians who do have an occasional bet (which let’s face it, is pretty much the entire adult population) to claim gambling losses as a legitimate tax deduction…so the net effect on the government revenue may well be a negative one I think!

In the US the story is different.  If you win the lottery for instance, you have to give Uncle Sam a share of your winnings.  I’m not sure what the  position is with cash won at the blackjack or roulette table, but presumably this is also taxable (even if rarely disclosed).

It looks like South Africa are about to move down this path also.

Finance Minister Pravin Gordhan has tabled new measures for the Parliament’s consideration which, if passed, will see a 15% levy on player winnings above $3,500, effective April 2012.

Wouldn’t it be nice of governments spent more time identifying ways to use available public sector funds more efficiently and prevent so much waste, rather than trying to find new ways to take more of our money so they can waste it?

 

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