casino winnings tax

Do You Have to Pay Taxes if You Had Luck in Casino?

Every year, a good deal of people try their luck in casinos. Some win big, and some suffer a few losses. If you are one of the lucky few that hit it big, you may be wondering if your casino winnings are taxable or not. Do you get to keep all your winnings, or do you give a cut to your local and state government? Well, it depends on your country. 

Paying Taxes on Casino Winnings

When it comes to taxes on gambling winnings, countries have different rules and requirements. Some states impose taxes on both professional and amateur punters. Some levy taxes on professional gamblers only, while others don’t impose any tax at all. It’s best to check the gambling taxation rules in your country and assess if you need to pay taxes on your winnings or not. In certain countries, it’s only the casino companies that are required to pay taxes. Gamblers that win big in these countries can walk away tax-free with their boatload of money. 

Countries Where You Pay Taxes on Casino Winnings

Here are a few countries that levy taxes on gambling winnings. The rate of taxation and the tax system used varies from state to state.

  • The Netherlands

The Netherlands imposes a 29% tax rate on winnings from games of chance. Examples of games of chance include lotteries, bingo, betting, and poker. Gamblers are only required to pay taxes if they make earnings higher than €454 and if the spent amount is lower than that won. 

  • USA

In the States, gamblers pay a 24% tax rate on winnings above a certain threshold, which depends on the casino game. The limit for bingo games and slot machines is $1,200. For lotteries, sweepstakes, and wagering pools, it’s $5,000. The casino deducts your tax winnings before giving you the payout. Taxation does not apply to table games and games of skill. If you win at table games, you don’t pay any tax. 

  • Poland 

Poland imposes different tax rates depending on the game. For poker, gamblers pay a 25% rate on their winnings. The rate drops to 10% for betting, lotteries, and raffle winnings above 2,280 zlotys. The games that are not taxable include slots, bingo, roulette, and card games. 

Countries That Don’t Levy Taxes on Casino Winnings

Now let’s run through some of the countries where gamblers aren’t taxed.

  • Austria 

Austria also does not impose taxes on gamblers. The casino operators are the ones that pay regardless of whether they are online or land-based. Taxation applies to both licensed and non-licensed operators. The rate varies depending on the games and type of casino. For online gambling, the operator pays 40% of the stake revenue minus winnings. The rate is 30% for a land-based casino. 

  • United Kingdom

In the UK, casino companies pay 2.5 to 40% of gaming revenue. Players are not taxed. 

  • Canada

You won’t pay taxes if you win in both online and land-based casinos in Canada. Professional gamblers are, however, required to pay taxes on their winnings as income tax. The government of Canada defines professional punters as anyone whose primary source of income is from gambling. 

  • Germany

Germany imposes the highest gambling tax rates in the world. Casino operators pay a 90% rate on gross gambling revenue. If you are a gambler, you don’t pay any taxes. 

Other countries where players don’t pay taxes on casino winnings include:

  • Malta
  • Australia
  • Denmark
  • Finland
  • Belgium

The Bottom Line

The amount of tax you pay after winning big in a casino varies from state to state. In some countries, you don’t pay any taxes on casino winnings. The casino operator is the one who pays. Other countries impose taxes on casino gamblers, although the rates are different. It’s worth checking the gambling tax rules and requirements in your country to know if you are supposed to pay taxes or not.