Online gambling is an adequately regulated field on an international scale. Relevant legal and tax implications accompany the emergence of virtual platforms like Velobet, Cosmobet, and Rolletto. Gambling income is taxed in most of the countries worldwide. At the same time, some jurisdictions do not have such tax or tax professional gamblers only. 

Australians looking to bypass Betstop restrictions turned to foreign-licensed casinos. Velobet is one of the most popular destinations. Registered and licensed in Curacao, it offers unlimited yet safe gambling options.

Nevertheless, when it comes to gambling income from Velobet, only Australian taxation laws apply to Aussies.

This blog post is dedicated to raising awareness of gambling income taxes and tips to avoid breaking the law.  

Gambling Income and Taxes: Overview

At first glance, gambling seems out of the scope of the taxation framework. A game of chance, by large, it usually represents a leisure activity. However, authorities worldwide have a different opinion. With a handful of exceptions (for instance, the United Kingdom), governments apply taxes on gambling wins, categorizing them as income. 

At the same time, some tax regimes distinguish between casual and professional gamblers or tax gambling incomes at different rates, depending on the type of gambling or the actual location of a casino. 

Professional gambling income refers to funds won by a professional gambler whose primary source of income is gambling.

Casual gambling income refers to funds won by a casual gambler whose primary source of income is not gambling.

Generally, any funds received from wagers or games of chance are considered gambling income and are subject to income tax, depending on the legal framework of the respective country. 

Gambling Income Tax Worldwide

As mentioned above, gambling tax regimes vary across jurisdictions. 

Europe

As a diverse region, Europe presents a scattered landscape regarding the taxation of gambling winnings. Despite the EU harmonization arrangements, each country has its own specific set of regulations and practices. 

Germany and France: 

German and French laws apply differently to casual and professional gamblers. For casual players, gambling income is tax-free, while professionals have to pay the income tax. 

Italy: Income generated at traditional casinos is tax-free; however, online gambling income is taxed at a 20% rate. 

Spain: In Spain, gambling winnings are taxable as part of a person’s income. At the same time, gambling losses are deductible. Spanish tax rates vary from 19% to 45%. 

The Netherlands: Gambling income in the Netherlands is taxed at a 29% rate. It is part of the income tax arrangement but is usually withheld at the casino.

The United States:

In the US, all gambling income must be reported to the IRS (Internal Revenue Service). This arrangement extends to all games of chance – lotteries, horse racing, dog racing, raffles, and sports betting. The overarching federal tax rate for gambling income is 24%. Gambling institutions are obliged to report the winnings that exceed legally established thresholds, while some states apply additional rates to the federal income tax. 

The United Kingdom: 

The UK offers one of the most relaxed tax regimes for gamblers. All forms of gambling are free from taxation. Your winnings will not be subject to income tax whether you play online or physically. Importantly, the no-tax regime extends to both types of players: casual and professional. 

Canada:

Canadian law treats professional and casual gamblers differently. Casual gambling income is not taxed, while professional gambling income is. The tax rates vary in accordance with the type of gambling and overall gambling income. 

Australia: 

Australia distinguishes between casual and professional gamblers for tax purposes. Casual players pay no tax at physical or online casinos like Velobet, Cosmobet, or Rolletto. But if you treat gambling as business and the primary source of income, your winnings are subject to taxation. Also, gambling losses are non-deductible. 

Velobet: Online Casinos and Tax Implications

Velobet is a reputable online casino operated by Santenda International B.V. It was established in 2023 and already tops the rankings among Aussie players. It holds a Curacao license and registration. 

Velobet became especially popular due to its non Betstop status. Besides, its collection of classic and modern games offers ample choices for Aussie gamblers. Moreover, it has a fully functional mobile internet website, allows for crypto currency payments, and cooperates with the best software provider companies. 

Velobet adheres to international gambling standards, laws, and regulations. Hence, you will not be allowed to play under the legal age (not less than 18 years). Apart from that, you cannot register and play unless you accept Velobet Terms and Conditions and Privacy Policy. 

Velobet Tax Tips

Velobet offers a limitless and unhindered gambling experience to Aussies. Nevertheless, being aware of tax implications is crucial. 

Upon registering at Velobet, you agree with its Terms and Conditions. This document defines the issue of taxing your winnings—specifically, Article 6 of the Terms and Conditions vests full responsibility on the players. Therefore, while starting to play at Velobet, you agree to take full responsibility for reporting your gambling income pursuant to the laws of your country of residence. 

As someone coming from Australia, your tax arrangement for Velobet winnings looks the following: 

Casual Gamblers: As per Australian laws, you do not pay any taxes on your winnings from Velobet. 

Professional Gamblers: Your gambling winnings at Velobet are subject to income tax. The tax rate is contingent upon your total income, gambling intent, and regularity.

Deductibles: Your gambling losses at Velobet do not qualify as deductible and cannot be subtracted from your taxable income. In the case of non-deductible losses, your gambling status (casual or professional) is irrelevant. 

Since taxes are your exclusive responsibility and applicable laws might change anytime, try to have a safety net to avoid legal violations. You can keep records (winnings, losses) of your gambling at Velobet and seek advice from professionals like lawyers specializing in taxation/gambling and accountants. 

Conclusion

Velobet is a popular online casino among Australian gamblers. On the one hand, it helps bypass Betstop, and on the other, it provides a safe gambling environment. 

As an online casino, it holds a Curacao license. It requires that Velobet users take full responsibility for income taxes or fees relevant to the jurisdiction of their country of residence.

Gambling income taxation laws vary dramatically. The Australian legal framework taxes only income from professional gambling. Casual Ausie gamblers’ winnings at Velobet are not subject to taxation. 

While taxes for Aussies apply differently depending on their gambling status, both professional and casual gamblers are advised to keep records of their winnings and losses and consult experts regularly.   

Know your country’s tax laws and play safely at Velobet!

Good luck!