All of us have different goals in life; we want different things, strive to become different people, and pave our own ways in life. However, there is a certain similarity in aims and purposes among the numerous gambling enthusiasts. They all just want to win! It makes sense, as the whole sense of gambling revolves around winning while also having a lot of fun. Not many people think about taxes after having a big win and a strike of good fortune. Some people might not even know the rules about taxation of the jackpots and casino winnings. This is rather a useful topic, one might not think of much while playing. In this article we will have an overview of different tax policies for gambling in Canada and find out whether there are taxes on slot machine winnings and other types of casino prizes. This info would be helpful to any avid gambler who aims at winning and wants to win big, while also following the relevant rules and knowing what to expect from their lucky day.
Taxes are no easy topic and they are rightfully feared across the globe. The amount of rules to follow, the bureaucracy, the math…However, each country has its own attitude towards taxis and specifically towards taxing different activities. Mainly, it depends on the notion of what constitutes a steady income, or a business profit. Today, we are going to concentrate our attention on Canada, so policies listed in this article work solely for Canadian gamblers and casino jackpot winners. If your country of origin is different, we suggest checking the rules that apply locally, as they all differ very much depending on the country.
So are casino winnings taxable in Canada? In order to answer this question, we have to embark on a little trip and imagine us playing in the echeck casino in Canada. Suddenly, we hit it big and find ourselves with a large sum of money, the jackpot, the desired prize. So what’s next? Do we have to give a considerable percentage to the government? Does it depend on the amount of cash we have won?
Well, first of all, Canada does not acknowledge gambling as a source of constant income. It is not considered as a business either, and most people do not make a living solely on gambling. So in this instance, all of the casino winnings do not require taxing in Canada. It does not matter how much money you have won and whether you did it online or in the physical gambling establishment – they won’t be taxed. However, a few nuances apply.
The situation with jackpots is viewed from a different angle if a player is a professional. If a player does not gamble for fun or entertainment but does it on a professional basis – this constitutes a profession, even though it might be a freelance one. From this perspective, it makes sense to view the winnings of professional players as a source of income and tax them accordingly.
One does not have to pay taxes on lottery winnings in Canada either. However, there is a catch to it. If you earn interest on it, the amount can and will be taxed. The same goes for casino prizes – if you have an interest, it will be taxed.
Well, what if a Canadian citizen gambles in the USA? And wins? In this situation, everything depends on the amount of money that has been won. Basically, it does not matter which citizenship one holds – the rules of the country he/she gambles in apply. So in this case, unfortunately, Canadian players will have to pay taxes in the USA, as according to their laws gamble and lottery winnings are taxable. And the percentage is not low – it comes to almost 50% deduction from a prized sum. The exception being if the winnings are less than $1200. In this scenario, the prize won’t be taxed. Consider this if you are thinking about making a trip to Las Vegas soon.
In the nutshell – Canadian gamblers are lucky fellas. They can enjoy lenient policies and make use of their jackpots fully. Also, it does not matter how one has won the money – through roulette, poker, slots, or a blackjack. They still won’t be taxed. Unless you are a professional player and gambling is your way of making money. So pay attention to the rules of the country you are gambling in and have fun! Good luck!
Jason Copley is a gambling enthusiast and an avid traveler. He often likes to explore new games and casinos all over the world, as well as rules and nuances that apply. Mr. Copley has a blog and shares his findings with the gaming community.