The Ultimate Guide to Gambling Tax Rates Around the World.
In some cases, the casino will withhold a percentage of your winnings for taxes before it pays you at the rate of 24 percent. Casino Winnings Are Not Tax-Free Casino winnings count as gambling.
Definitions: DRS means the Department of Revenue Services. IRS means the Internal Revenue Service. Gambling winnings means and includes proceeds from a wager placed in a sweepstakes; wagering pool or lottery (other than state-conducted lottery); payments made to winners of poker tournaments on or after March 4, 2008; or proceeds from a wagering transaction (including a wagering transaction.
The requirement to withhold applies not only to commercial operators of such gambling establishments as racetracks, casinos, state lottery and bingo, but also to nonprofit entities. All must withhold 6% from - winnings or submit information returns for state purposes if they are required to withhold or report for federal purposes.
Then-Chancellor Gordon Brown started the ball rolling in 2002 by scrapping all taxes on gambling winnings. It was actually a 6.75 percent tax on bookmakers that translated to a 9 percent tax on gamblers. It was the first time since the 1960s that British gamblers could bet without being taxed. Later came the 2005 Gambling Act.
With the new tax brackets, that means you’ll owe 37 percent on your winnings, minus the 25 percent you’ve already paid, for a total of 12 percent. If you live in a state where lottery prizes are taxed, you’ll owe an additional tax of 2.9 percent to 8.82 percent, depending on the laws where you live.
Gambling winnings to be taxed 15% Wednesday, February 23, 2011 Cape Town - Those who rake in gambling winnings of over R25 000, including payouts from the National Lottery, will from next year have to pay a 15 percent withholding tax, the Minister of Finance Pravin Gordhan announced in his Budget Speech on Wednesday.
The income tax rate is 24% on all types of gambling profits, but there are certain sources of these winnings that are automatically subject to withholding tax. Follow the IRS guidelines to have a preset percentage taken out of your winnings.