Online casinos typically publish instructions for how to play each game, so you can always read these when you’re not sure what to do. This is all you really need to know about how online casinos work, but you can read more in our online casino basics section. This article explains how casinos use a random number generator. Canadians can play the lottery, live casinos, poker and online games without paying taxes unless they are a professional. Likewise, Australians and New Zealanders can also gamble tax-free. To put things in perspective, Americans do pay some of the lowest personal income taxes in the first world. Things tend to even out in the end.

Gambling In America

If you've ever won a jackpot in Las Vegas, you probably know that your excitement diminishes at least a little when the casino throws a W-2G tax form in your face. In fact, if you don’t provide your social security number, the casino will automatically withhold up to 30% of your winnings. The same goes for lottery and horse racing wins above $1200. Yet when playing online, paying taxes isn’t always so black and white.

Americans who play at US-based online casinos will usually have to deal with withholding taxes just like in Las Vegas. Yet that only represents a small fraction of your entertainment options. When playing at licensed offshore online casinos or poker rooms, American players usually won’t hear the words taxes mentioned at all.

Sadly, it is never safe to assume that your winnings are ultimately tax-free. It is true that Americans who play at internet gambling sites outside of the USA won’t be subject to withholding taxes when withdrawing their winnings. Yet you may be required to report these gains when you file your taxes in April. The greatest determinant is the number, size, and frequency of your wins. The actual threshold varies from state to state and whether or not you are an amateur or professional. For more information on reportable gambling winnings visit the IRS guide: https://www.irs.gov/instructions/iw2g/ar02.html

Professional Gamblers

Whether or not you qualify as a professional gambler doesn’t solely depend on your performance at the tables. The main litmus test is the expectation and probability of profit in the eyes of the Internal Revenue Service. Your success and whether or not you have a regular job on top of gambling may also be factors.

With even amateur gamblers having to deal with taxes, professional gambling does have benefits. You can actually deduct your wins from your losses when your treat your gameplay as a business. No matter what your current status is and how often you play, it's best to keep tabs on your performance to develop strategies, stick to a budget, and simply know where you stand. You can find this tip sheet courtesy of the IRS: https://www.irs.gov/taxtopics/tc419.html

Whether or not the IRS can actually track your winnings is another matter entirely. Yet you should be aware of your obligations. With a huge budget deficit and ballooning debt, the federal government is looking to fill their financial holes any way they can. Between the NSA and modern forensic accounting practices, covering your digital tracks is more difficult than it used to be.

Tax Obligations Outside Of The USA

The United States is a bit of an outlier when it comes to taxing gambling winnings. In the United Kingdom, the government taxes the gross profits of casino operators rather than players. Canadians can play the lottery, live casinos, poker and online games without paying taxes unless they are a professional. Likewise, Australians and New Zealanders can also gamble tax-free. To put things in perspective, Americans do pay some of the lowest personal income taxes in the first world. Things tend to even out in the end.

Like anything else, interpreting the rules is always a matter of debate. Here's an interesting tax perspective for Canadians: http://business.financialpost.com/personal-finance/tax-expert-a-gamble-over-poker-winnings

Things To Consider

Keep in mind that Americans have to deal with both Federal and State taxes on most forms of income. Always keep basic records no matter how often you play or win. This will make things easier during tax season.

Accountants Have The Answers

No matter where you live, it's always best to discuss your personal situation with a licensed tax professional in your area. You can usually get a short consultation for free with complete confidentiality. It's the best way to play by the rules while minimizing your tax burden.

Finally, Lady Luck smiled at you and you could win a significant amount of money in the casino. But to win – it does not mean to get money, because they are still on the account in the casino, and you need to withdraw them.

In unlicensed and especially small online casinos, if you win a significant amount, you may have problems with payments.

Pay By Mobile Casino Sites

The first thing that such casinos can do is to delay the payment by any means in the hope that you will start betting again, lose your winnings and they will not have to pay anything. And even worse – such casinos simply refer to the fact that you have violated the rules and block your account. Therefore, before request a large withdrawal from the casino, be sure to make a screenshot of the winnings and personal account where your deposits will be visible. Also do not forget to take screenshots of any correspondence with the casino support service.

Possible Reasons Why Online Casino Refuses To Pay Out Winning

Active bonus

If the player has an active bonus, the casino financial service has the full right to refuse to pay out . If you play with bonus money, bonuses have to meet wagering requirements before the withdrawal.

Deposit Turnover

In order to prevent money laundering, the online casino security service sets the terms of the turnover on deposits. By withdraw of the funds, the sum of made bets since the last deposit has to be equal sometimes 3x or 5x times the size of that deposit. Thus, if, after making a deposit, the player wants to immediately withdraw funds without placing bids, the casino has a right to refuse.

Verification

This is the main reason why online casino refuses to pay out. Identity verification is the most important point of the user agreement (Terms and Conditions), which the player has to read before opening an account at an online casino. To avoid any problems with verification, it is important to prepare in advance a complete list of certified documents:

• ID (passport, driving license)
• Utility Bill (must be dated within the last 90 days)
• Proof of Deposit: Screenshot or photo from your online bank account, bank statement, Skrill page, etc. showing the deposit.

Do not make deposits from other people’s e-wallets, cards, and other payment systems, only from your personal accounts!

Withdrawal Methods

Sometimes casino refuses to pay out winning due to an unacceptable method of withdrawal of funds. Some payment systems and bank cards do not provide casino withdrawals. For example, if you find your account using Mastercard, mostly you can not withdraw money on Mastercard. But you can use Skrill, Neteller, or Visa to request a withdrawal.

Basic Steps To Get Your Winning If Online Casino Refuses To Pay Out

Making sure that all the above-mentioned options are not an excuse for refusing payment, players can do the following:

If an online casino refuses to pay out, the first thing you need to do is suspend the game until the problem is solved and facts are fixed. Take screenshots of winnings, balance, payment history, save emails or chat history. All these steps can be useful if the case takes a serious turn.

Usually, the first step is to contact the casino support service. Listen to what they say. If the support team points out a violation of some kind of rule on your part, make sure that everything is clear to you. You can ask them to explain the situation in detail and indicate the point that you violated. If the casino says some nonsense and does not want to provide facts, and at the same time refuses to withdraw money, start to publish complaints on gambling forums.

Gambling Forums

Online casinos are very afraid of bad publicity. This leads to a loss of confidence among players, a decrease in traffic, and, as a result, income decline. Therefore, if you played fair, and the casino does not pay you a win – start writing about it on all sites and forums you can find in google search.

1. Casinomeister forum. This portal casino is launched by Bryan Bailey and is probably the best forum for players with payment disputes.
2. AskGamblers forum. This portal has been in operation for more than 10 years and it is the most visited gambling portal.

Typically, these resources are monitored by the casino representatives. If you claim illegal actions on their part, they will have to pay out your winnings. Otherwise, the players will stop playing at this casino.

Gambling Commissions

Apart from this, you can write an email to the gambling commission for the supervision of the online casino. Check in which jurisdiction the online casino you’ve played at is licensed in. This information you can find in the footer section of the website.

Usually, online casinos hold licenses issued by the following regulators:

How Do Casinos Pay Out

• United Kingdom Gambling Commission
• Malta Gaming Authority
• Curacao eGaming
• Alderney Gambling Control Commission
• Gibraltar Gambling Commission

The online casinos usually value their reputation and when the player starts complaining to the gambling commission, the casino will definitely try to do everything to contain the situation. Generally, after such a complaint, the casino not only pays out the winnings but also gives gifts: free spins or no deposit bonuses to smooth things over with a player.

After a positive decision on payment, before closing a dispute, be sure to wait until the casino fully pays out your winning. And, of course, do not play in such a casino anymore, as a good and reliable casino must pay a winning without problems.

Do Online Casinos Pay Real Money

What problems did you have with paying out big winnings? Share with us in the comments.