Taxes: Loto, scratch cards, betting… what type of tax on winnings?

Amounts won in games of chance are not subject to tax, but other gambling may give rise to taxation. CNEWS takes stock of the regulations.

games of chance

Winnings from games of chance (lotto, raffle and other scratch cards) are not subject to income tax. Whether the player wins 5 euros at the Banco or wins the Euromillions jackpot, he will receive the full amount in his account. And this even if he wins regularly. “This practice cannot be assimilated to a gainful activity generating taxable income. The absence of taxation is explained by the strong hazard linked to games of chance, ”explains Olivier Rozenberg, president of Fidroit and asset management advisor.

If the gain is not taxable, any movable or real estate investment made with the money earned can however be. For example, if the lucky Loto winner invests in real estate and his taxable net wealth exceeds the tax threshold of 1,300,000 euros, he will then be subject to the IFI, the tax on real estate wealth, which replaced the ISF in 2018 (wealth tax). “Regardless of the source of the cash, it is the nature of the investment that counts, ”recalls Olivier Rozenberg.

Finally, if the player wishes to share the amount won with his relatives, the donation will be taxed according to the scale of donation rights. This depends in particular on the family relationship that may exist between the beneficiary and the donor.

Card games

Gains obtained by a poker or bridge player give rise to taxation only if the activity is carried out as usual and under conditions similar to a professional activity. “We are talking here about people who organize their lives around this activity and who incur costs, for travel abroad for example”, specifies the expert.

The income generated then falls into the category of non-commercial profits. Important clarification: expenses incurred in order to obtain a gain are deductible. “What is taxable is the gain from which we will have deducted the charges”.

The tax is explained here by the lesser importance of chance in the game. “Unlike the lottery, we can say that there are good and bad poker players. It’s an activity that requires real skill. ”

Horse racing and sports betting

Gains obtained through sports or horse betting are not taxable. Certainly, the player can count on his knowledge of the sport to win the win. “But the bettor remains passive. It has no influence on the outcome of the race or the match, ”explains Matthieu Escande, lawyer specializing in betting law. As such, “bettors do not have to be taxed and are not required to declare their income.” And this whatever the amount or the regularity of the activity.

Casino games

In a casino, only winnings above 1,500 euros are taxed. They are subject to a social levy of 13.7% for the CSG. “This deduction is made directly by the casino and the player receives the net sum of CSG. He is therefore not obliged to declare this income ”, specifies Olivier Rozenberg of Fidroit.

Online Casino

Blackjack, roulette, craps … Online casino games are banned in France because they would be “unfair competition to physical casinos which contribute by tax to the tourist economy of the resorts where they are located”, recalls Matthieu Escande. Online, “only poker has been authorized since 2010”. The resulting income is not taxable unless it is related to a professional activity.

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