Do I have to Pay Taxes on My Casino Winnings? – Winning big sums at games is always an exciting adventure, and when it does, you always wonder: How much do I owe in taxes? are my earnings net of tax? is it deducted at source like the lotto? To find out more and see more clearly, the editorial staff of Top conducted the investigation and interviewed a tax lawyer.
Question: Do I have to pay taxes on my winnings?
I just won 1500 euros in a casino but when I got my money back I was given “only” 1320 euros. I thought my winnings were net of tax, is it legal to deduct money from my casino winnings?
Response from our lawyer:
The tacit (unwritten) contract that the player enters into with the casino when he enters the establishment is a random contract, i.e. he does not know if he is going to win and if he wins. do not know the amount in advance. In short, the contract is “to pay you so that you may have the chance to win big wins”. Even if upstream the casinos pay taxes for the benefit of the state and taxes for the benefit of the regions, the winnings are exempt from taxes and levies on the collection of winnings.
But (because there is always a but). All earnings above 1,500 euros are subject to a social levy under the CSG of 12%. Moreover, as such, legally a sign must be clearly visible in the establishment, clearly stipulating that an amount on earnings exceeding 1,500 euros is systematically deducted for the benefit of public charity, like their ancestor. lotto. This amount is not an amount collected by the casino for various expenses but fully reimbursed to the French State.
We can call it a deduction at source, it should be noted that the rate of 12% is much lower than the levies on income from salaried or even self-employed work. We draw your attention that this levy for the CSG only concerns real casinos, such as the Partouche casino for example, located on French territory, it does not in any way concern online casinos which are all located abroad without exceptions.
So for all the winnings obtained in the casinos below, the tax authorities cannot legally ask you for a part of your winnings. Either way, as long as you earn less than $ 1,500, you won’t have to worry about this issue.