Topic: Gambling with crypto because taxation makes no sense? - page 5. (Read 481 times)

In my country, there is a law that allows the state to obtain 25 percent of any amount a person wins in games and competitions of all kinds, even if he won it with a company outside the state or on the Internet, if the state agencies are able to prove that. The state automatically deducts that amount in the form of payable taxes and considers it a taxable grant. Of course, these procedures go through a bureaucratic process that will take a long time, and it is not possible to predict how long it will last.
Crypto represents an ideal solution for those who are struggling in a country like mine. But taking into account that my country does not grant official business licenses to any platform that is not under its direct authority. In other countries, gamblers cannot escape paying taxes, even if their winnings are in crypto.

Well do we have adequate tax system globally,  I guess the answer in no because at most,  what we have is few states that have full gambling regulations and tax regime,  this is not so with every other countries,  in my country for instance,  there is not full gambling regulations so most of the gambling platforms still are unlicensed and whatever winning that are make from them,  are not reported to the authority,  so the issue with gambling and taxation is a silent characteristic of the gambling industry here in my country.

The situation may not be same with countries like the United States who have high regulations for casinos and at that,  there be working systems that deduct the tax percentage from every winning before their laid out at whatever point.

If you are dealing with those physical places and you do win up something and your government is  really that too strict when it comes to compliance about taxation which is including gambling industry then you wont really be having no choice but to comply with it or else then violation and penalties might be there or simply facing up some legal issues on which as a certain individual wont really be
have a choice but to agree into that huge cut. It is one of the most important feature on what crypto gambling had is that whenever you do win big then there's no way
that they could be able to ask out taxation. Why? you could opt out on gradually be able to withdraw those funds on staggered manner and it could really be done
anonymously or something that wont really be giving out any suspicions.

I also think that the governments are cheating their citizens, gamblers can win or lose, but gambling sites are the ones that are constantly winning and making money from customers. In that sense, only those gambling sites are supposed to be taxed, not the gamblers.

It would be better if the government want to tax gamblers, the government also supposed to pay the percentage taxed of the amount the gamblers are losing. I mean assuming the tax is 10%, if gamblers lose money, government also supposed to pay 10% to the gamblers of the amount they lose. This will make taxing gamblers justifiable.

Taxation is a topic that often comes up when it comes to someone winning anything in gambling.
The so called "nationally licensed" providers will usually automatically get a cut from anyone's winnings whenever they win anything.

And let's be realistic, we all know the drill with gambling. Most gamblers are not in the green and those that persist do it for the thrill of it, not to earn from it. So when you win, it's usually from your own bank. But whenever someone is lucky enough to catch a break, governments will slip in and take their share. Regardless if you've lost more than you've earned in total for instance. The irony on this matter is also that gambling wins are used to substitute how many taxes these state "licensed" casinos have to pay. So the whole subject of gambling taxation is unfairly structured towards the player.

Moreover, in many countries, filling out the forms to get taxed can be a nightmare. For winning 100$ for example, you will have to pay a big chunk of it to an accountant to find how it should be taxed. Bureaucracy is a whole other debacle in and of itself.

I'd imagine that many people actually chose to gamble with crypto to avoid these restrictions and bureaucratic procedures. It really makes no sense to go through all these troubles to tax a small winning amount. Still if someone happened to win a large amount on a small bet by chance, I'd imagine some people would want to tax it so they can spend it in the real economy as fast as possible.