When 80 percent of the adult population gambles, as it does in Australia (the highest ratio in the world), the government will almost certainly tax you. Even if this isn’t the case, most governments consider gambling gains to be a type of income and will tax them accordingly. It’s understandable, especially given the fact that some people believe themselves to be professional gamblers.
Those competing in the World Series of Poker in Vegas are millionaires, and it’s all thanks to gambling.
Gambling isn’t considered income, thus it’s not taxed
Despite its obvious logic, Australia does not levy a tax on gaming. This is due to the fact that betting is not regarded as a profession in Australia.
It’s nice to know that whether you’re gambling online or in a brick-and-mortar casino, all of your earnings are yours, and if you consider yourself a professional gambler, you won’t be classified as one by the Australian government.
Unless that offends you, that is unquestionably a good idea, because you would virtually not be paying income tax on your professional earnings.
If you are looking for pro gambling tips, check out our blog on how to become a successful gambler.
What Does It Mean If It Isn’t Earnings?
Gambling is considered an entertainment and leisure activity by the Australian government, hence it is not taxed.
Furthermore, as we all know, winning is based on luck (though some would argue that this isn’t true for all games, particularly ones where you play against other people, such as Poker).
Here’s the mindset: “With good luck comes bad luck.” As a result, even if you win, you could easily lose the next day. If wins are taxed, you will end up with less than you won, and if you lose the same amount the next day, you will lose more than you won. By that logic, the government is looking out for the best interests of its population when it comes to a form of entertainment.
Another reason is that casino operators are subject to taxation, and it is not a light levy. Instead of taxing the players, who are at a significant disadvantage to the casino in terms of odds, the casino is taxed. They do not, however, have the authority to tax a foreign online casino operator, therefore neither you nor the casino will be subject to taxation. You will instead be susceptible to various types of fees, which are outlined in the next section.
What Types of Charges Are There?
“So, if there are no taxes, does that mean I won’t have to pay any fees at all, and every dollar I win at the casino will go straight to my bank account?”
I’m sure you’re thinking. The answer is no, not necessarily, at least while you’re playing online. Because there are few, if any, online casino operators based in Australia, you will be charged a foreign transaction fee when making a deposit or withdrawal.
This will also be determined by the type of banking technique you employ. MasterCard and Visa, for example, will always charge you a foreign transaction fee, whereas Skrill is known for either not charging one or charging one that is very modest and has a maximum cap. There’s also the issue of currency conversion, as some of the greatest casinos don’t allow Australian dollars to be used.
While the casinos we recommend include services and features customised exclusively for Australian players, such as the ability to play in your home currency, other casinos do not, in which case you will have to convert the funds as they are transferred to your bank account. Skrill, as well as Paysafe and Neteller, have well-known low fees for this.