I have a wierd question

[babs7262]

I dont know why I even thought of this and its going to sound crazy but Im just plain curious.

If a casino gives you a bonus, is that considered a tax write off because its considered a gift? I am asking because they really make out if you dont win on that bonus they give you because if they give you a nice bonus and they get to write if off and the person loses, then they are not only getting a write off but also getting their gift back right?

Im having strange thoughts today lol

 

[kakata]

I dont know why I even thought of this and its going to sound crazy but Im just plain curious.

If a casino gives you a bonus, is that considered a tax write off because its considered a gift? I am asking because they really make out if you dont win on that bonus they give you because if they give you a nice bonus and they get to write if off and the person loses, then they are not only getting a write off but also getting their gift back right?

Im having strange thoughts today lol

I wish I undearstood.......still love you thou...

 

[BingoT]

Here is a Gift for you Babs
Link Removed ( Old/Invalid)

Don't spend it all in one place.

 

[bayleesprings]

I dont know why I even thought of this and its going to sound crazy but Im just plain curious.

If a casino gives you a bonus, is that considered a tax write off because its considered a gift? I am asking because they really make out if you dont win on that bonus they give you because if they give you a nice bonus and they get to write if off and the person loses, then they are not only getting a write off but also getting their gift back right?

Im having strange thoughts today lol

Not only that, but all the freakin' money you have to wager and THEN lose. So did they really GIVE you anything? Nah...

 

[bayleesprings]

Here is a Gift for you Babs
Link Removed ( Old/Invalid)

Don't spend it all in one place.

I just scratched at the screen trying to peel off one of those bills. It no workee...

 

[BingoT]

Bayleesprings

Expired Image

 

[vinylweatherman]

A weird answer

Casinos (online) tend to be based in tax havens, so I expect they don't get bothered much by tax in the first place.

In terms of a "proper" juristiction, it would depend on the tax laws. A gift can be taxed, but the recipient pays. Here in the UK, small gifts are exempt, however large gifts are treated as "salary" where given by an employer.
Where the gift is given by a business to attract custom, it normally comes under the heading of "marketing & customer retention", and this indeed can be taken as costs, which can be offset against profits, and thus result in the effect of the gift being a tax write off.
I am sure the gift is only made when the customer receives it, so a bonus with WR only becomes a gift once the player meets WR and makes a withdrawal. I expect it is treated no differently than when a player wins with their own money, or with a deposit bonus, as most businesses are taxed on profits.

One exception can be a sales tax, such as VAT, which is charged on TURNOVER, and not profit. If a gambling activity is taxed this way, then a tax would be based on amount deposited, and not the amount won by the casino. On Fruit Machines, the tax is levied per spin, but this may well be changing to a tax on profits, as has been done in the past for bookmakers. I don't think casinos are charged VAT in this way, online or off, so they don't have to worry about this question of how to treat a gift when it is gambling related.

US players would probably be taxed on any withdrawal they make from such a gift, as it would be pure profit - UK players have no such concerns

 

[satchmo]

Well what i know of is that is up to the company to deice, they pay tax for all the personal and such, and i know certain ordinary onlinge games has taxes in them.

But what i do know at the moment, we dont take any vat on winnings.
So in my opinion it's must be up to the customer and the tax laws in the country the customer is living in.

So if you dont tell whe dont tell i suppose


Satchmo the man the myth the Link Removed ( Old/Invalid) resider.....

 

[james01]

Basically, what happens in your account between your deposit and your cashout doesn't count for taxes - only the deposit and the withdrawal count, as far as I know, which means that close to the end of the year, if you can't show a lot of losses, you may do better to let money sit in your account.

As for the casinos themselves, they're taxed on profits. The bonus money is completely irrelevant - All that counts is how much is deposited minus how much they pay out.