If you have already won a jackpot in poker, online sports betting, slot machines or if you won the jackpot at the lottery, you may have wondered if your earnings were taxable: like any administrative procedure, the answer is not always easy. But we can not imagine big cents without the state drawing its share there, then, what about the taxation on Money games?
What legislation applies to games of chance?
There is a general ban on games of chance (article L.324-1 of the internal security code), but over the years, several derogations have been granted, gradually authorizing certain play activities. These services must be offered either in specific places, either by approved operators.
National lottery: The government was authorized by law to create a national lottery (article 136 of the 1933 finance law). The national lottery is a legal monopoly in USA managed by the historic operator, the American games. In addition, La Française des Jeux is also authorized to offer sports betting games (Decree 85-390 relating to the organization and operation of sports forecast games).
Online gaming operators: The Regulatory Authority for online Games (ARJEL) can issue licenses To operators authorizing the offer of games such as online poker, sports betting or horse racing Paris (2010-476 law of May 12, 2010 on online game regulation). Foreign online casinos are regulated by other licenses.
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What are the tax plans applicable to online games of chance?
For online games of chance, different taxes apply according to the playing and Paris activities. Taxation can be based either on bets or on the gross income of the game.
Lottery: The tax for the National Sports Center applies. It amounts to 1.8 % of the bets (limited to 163.450 million euros per year). A social contribution of 6.9 % must also be paid. It is calculated on the basis of 25.5 % of betting.
Online sports betting: The tax contribution for sports betting is 5.7 % of the total betting amount. The social security subscription is 1.8 % and the tax for the National Sports Center is 1.8 % of betting (limited to 32.3 million euros per year).
Online poker: The tax contribution for online poker is 1.8 % of betting. The social security subscription is 0.2 % of betting.
Online casinos based abroad: USA is unable to control the gains won in the Casinos installed abroad, and can therefore only apply a taxation when the player declares his earnings. The taxation of online casino games is the same as those of physical casinos in USA:
- Up to $ 100,000: 10 % state taxation;
- Between $ 100,000 and $ 1,500,000: 30 %;
- Between $ 1,500,000 and $ 2,600,000: 40 %;
- Between $ 2,600,000 and $ 5,500,000: 55 %;
- Beyond $ 5,500,000: 70 %.
Foreign gains are often difficult to recover by the American state because of this legal vacuum. However, in USA as at European level, no bill aimed at regulating players' gains in online foreign casinos is to come, or has so far been offered.
What if you are a professional player?
Someone who mainly uses the game as the main source of income is imposed when the sums won significantly modify the player's heritage. In addition, regular gains can be considered by the taxman as a form of wage remuneration, therefore taxable. The gaming gains remain free if they are occasional or unimportant, whether it is your main source of income or a simple hobby. If the gains won with organizations authorized by ARJEL or, national lotteries are subject to taxation, in particular because these sums are easily verifiable for the State or the taxman, the situation is very different for online casinos based abroad. In this case, the player may or may not decide to declare his earnings, while keeping in mind that large sums of money from abroad and credited to a American account can be reported to the tax centers under the laws on money laundering and terrorism. A game to which you are advised not to play;)