Tax winnings for high rollers

1. General rule: win as income

Any winnings are considered income and are taxable under local laws. The size of the rate does not matter, the amount of payment is important.

2. Tax-free jurisdictions

UK, Australia, New Zealand, EU majority: Private player winnings are tax-free.

The reason: the state considers betting "entertainment" rather than investment activity.

3. Taxation in Russia

Rate 13% (for residents): the operator holds more than 15,000 ₽ when paying.

Declaration: if the operator has not withheld, the player declares in the tax until April 30 of the year following the reporting year and pays himself.

Tax base: net gain (gain minus the sum of bets for the period).

4. USA: progressive tax on all income

Federal tax: up to 37% depending on the total amount of income.

State tax: 0% to 13% depending on the state.

Form W-2G: the casino will report to the IRS for winnings ≥ $1,200 in slots or ≥ $5,000 in poker; holds 24% by default.

5. Canada and Japan

Canada: Local winnings are exempt, but the professional game is taxed.

Japan: Lottery and betting winnings are subject to 20%, but casinos outside the country are not, it is difficult to declare.

6. International agreements and avoidance of double taxation

Double tax avoidance treaties (DTTs): Many countries do not extend them to gambling income as it is not "contract earnings."

Practice: Usually winnings are taxed only in the country of the player's residence.

7. Recommendations for high rollers

1. Consult a tax lawyer: with turnover from several hundred thousand euros/dollars.

2. Keep records of bets and winnings: save all payment documents and operator reports.

3. Immediately clarify the deductions of the casino: in the contract or W-2G/W-8BEN certificate.

4. Declare income on time: to avoid fines and penalties.

5. Use DTT if applicable: if the mechanism falls on winnings, check the agreement norms.

Taxation of winnings for high rollers depends on jurisdiction: private winnings are often exempted, however, in a number of countries (Russia, USA, Japan) there are strict rules and rates of up to 37%. Accurate reporting and planning will avoid risks and save profits.