Online Gambling Tax Ireland
There is a big difference in taxation in terms of trading and recreational gambling. Let’s discuss if your gambling rewards are taxable in Ireland. It’s a given that your winnings from lotteries and sports betting are not subject to Ireland’s capital gains tax. It’s good news for gambling aficionados and casino enthusiasts. Irish bookies pay 1% tax on all bets placed through their service. In Kenya, bookies pay 7.5% tax on all winnings they record. In 2017, Kenya upped their tax percentage rate to 35% with hopes of helping young people pursue career choices other than gambling. On-line bookies face 1% tax from August New charge will not be passed directly on to customers Wed, Apr 15, 2015, 18:05 Updated: Wed, Apr 15, 2015, 18:06. Ireland’s plan to impose a one-percent tax on bets made online or over the phone from customers based in the country has been delayed into 2015, according to reporting from Reuters.
The island of Ireland consists of two different countries: Northern Ireland and the Republic of Ireland (hereinafter called ‘Ireland’). The latter one has a population of more than 4.6 million people, and its total land area covers approximately 70,200 km2. Ireland doesn’t form part of the United Kingdom, and its capital city of Dublin has a population of nearly 553,000 people. In addition to its EU membership, Ireland is also a member of the United Nations. Irish is the national and first official language, while English is the second official language.
Most people associate Ireland with beer, the green Shamrock, and folk music. The Irish affectionately call their famous stout beer ‘the black stuff’, which refers to its dark color. Saying that Guinness is the country’s most internationally recognized symbol would go down as the understatement of the day. Ryanair and Primark, both low-cost companies, are two other examples of famous Irish brands.
Nearly every type of gambling is legal in Ireland, including land-based casinos, lottery games, and sports betting. It’s an open secret that British have a weak spot for betting on sporting events, and the Irish are certainly no exception.
Irish gambling fans can also enjoy online games of luck as well, which is completely legal on the Emerald Island. The government of Ireland grants licenses to operators of online casinos and sportsbooks. On top of all that, Irish gambling enthusiasts can freely play at foreign-based gaming sites, including internet casinos and online sports betting.
Best Irish online casinos
Many forms of gambling and games of chance have long had a place in Irish culture. The expression ‘the luck of the Irish’ is a testament to their inborn fascination with all kinds of gambling. Local gambling devotees can choose from many games of chance, both online and at brick and mortar establishments. The popularity of internet gambling and sports betting continues to gain popularity, and Irish should certainly check out this trio of premium online gaming sites:
Online Gambling Tax Ireland 2020
Popularity online casinos in Ireland explained
It would be a gross understatement to say that the Irish love a gamble, which explains the huge popularity of gambling and sports betting in the ‘land of the leprechauns’. Based on the purchasing power parity (PPP), Ireland is a wealthy country, as its PPP equals 345 percent of the world’s average. The Irish gross national income (GNI) per capita however, is below the average of the Organisation for Economic Co-operation and Development (OECD) countries.
Since 1960, the Irish economy has shifted from middle income to high income. In the nineties, the economic development accelerated, and employment nearly doubled. Ireland benefitted from the single market in Europe as many globalizing companies settled in Ireland. Its knowledge-based economy consists of multiple flourishing industries, including services (e.g. financial) and high-tech (ICT).
The Irish economy also benefits from the low corporate tax, which has lured many leading companies, including Twitter, Facebook, LinkedIn, and Google. That’s why Ireland is referred to as a tax haven.
After impressive growth numbers, 7 percent between 2001 and 2004, and 10 percent between 1995 and 2000, the Irish economy entered a recession in 2008. The EU and the International Monetary Fund (IMF) rescued the Irish economy with an extensive bail-out package. In 2013 however, growth returned (+1.1 percent), followed by a 4.8 percent expansion in 2014. Things got even better as the Irish economy posted an impressive 26.3 percent growth in 2015. The employers’ group Ibec has downgraded the expected expansion to 2.8 percent for 2018, with the same applying for the 2017 projected growth (3.7 percent).
Also in terms of unemployment, Ireland is making progress, as the jobless rate has dropped to the lowest rate since 2008. Market watchers expect the unemployment rate to fall below 7 percent by the end of 2017.
After a penetration rate of 61.2 percent in 2007, more than 81 percent of the Irish population has access to the internet in 2017. The usage of mobile devices, e.g. smartphones and tablets, continues to grow in Ireland. Indeed, more than 87 percent of the population owns a smartphone. Considering the Irish’ love affair with all sorts of gambling, it doesn’t come as a surprise that both internet gambling and online sportsbooks are hugely popular in the ‘land of saints and scholars’.
Gambling and online casinos in Ireland
So, it’s crystal clear that the Irish have a weak spot for games of luck, with a strong rise in its online variant. This is why so many gamblers from all over the world have embraced the exciting world of virtual gambling:
- A myriad of rewarding bonuses
- Smashing promotions packed with cool prizes
- Dazzling payouts, and life-changing jackpots
- Entertaining online casino games loaded with cool features
- Very lucrative loyalty programs
- Vibrant live online casino portals
Online Gambling Tax Ireland Online
How to deposit money in an online casino when I’m from Ireland?
Another cool feature at online casinos is the ability to play for free. However, gamblers who like to win some real cash have to play for real money. Online gaming sites are also famed for the huge number of user-friendly and quick payment systems, for example these secure methods:
- Credit cards, such as Maestro, Visa, and MasterCard
- E-wallets, e.g., Skrill, and Neteller
Fancy a rewarding session of internet gambling after reading our “online casino Ireland” page? Grab a 100% first-bonus at Royal Panda’s exciting online casino!
Roulette
Blackjack
Recommended casinos
Other casinos
There is a big difference in taxation in terms of trading and recreational gambling. Let’s discuss if your gambling rewards are taxable in Ireland.
Online Gambling Tax Ireland Uk
It’s a given that your winnings from lotteries and sports betting are not subject to Ireland’s capital gains tax. It’s good news for gambling aficionados and casino enthusiasts. While most gambling game winnings aren’t taxable, it’s important to note that the income tax approach is not crystal clear when a punter is regarded as a trader or a simple recreational gambler. So how would you know if you are assuming a trader role or just a recreational gambler?
What’s the Difference Between a Recreational Gambler and a Trader?
Investing in gambling is a very subjective notion. It’s a given that gambling depends on pure luck and it doesn’t require any skills to win. There is no really a rational prospect of gaining profit from a gambling activity, hence, it can’t be considered as a trade per se. The ironic topic would be betting is systematic and organized in such way that the profits are the reward of the bettor’s wager options. The proceeds are deemed as income from a taxable trade. Are you confused already?
Will Spread Betting Winnings be Taxable?
It’s a conflict that the gambling industry is debating. There’s not objective method to determine if a gambling activity as a trade per se. The Ireland Revenue Commissioners are reviewing every case based on actual facts and situations. The objective approach would only be seen if a person is regularly engaging in gambling activities. This person isn’t a recreation gambler since he is wagering to create profit from a wagered amount of money. It’s considered a trader’s approach.
According to Galway Independent, these are the factors to consider if a person is trader:
- The scale of the activity i.e. the amount and frequency of the transactions
- The background of the individual i.e. if they are skilled or qualified in a particular area
- Does the bettor engage in the activity principally for profit or pleasure
- Does the bettor run a business ancillary to their gambling activities
Are Winnings Taxable in Other Countries?
Bettors in the United States who are fortunate to win a big among of more than $5,000 in a lottery will be subjected to 30% withholding tax. For instance, if you win a whopping $100,000 jackpot, you only receive a net total of $70,000.
The Internal Revenue Service will claim the $30,000 to settle your tax liability. Good news for table games enthusiasts, your winnings on roulette, blackjack, and baccarat aren’t taxable. Gambling losses up to the total amount of winning can be offset for tax purposes as well.
Gambling Winnings Taxation are Subjective
Gambling activities in Ireland aren’t all subjective to income tax. Recreational gamblers won’t feel the effects of gambling taxation. The idea though is that it is still subjective whether a person is a trader or a recreational gambler.
For instance, a trader can wager $1,000 daily per week and a recreational gambler will wager $7,000 per week; it’s the same amount but the frequency is different but the objective is the same which is to gain profit. Right? Still confused? Let the Irish gambling regulators take care of this issue and enjoy the games.