Betting Site With No Tax
As of January 2019, Sweden will open its doors to the masses of international gambling operators who are looking to set up business in Sweden. This is an unprecedented move by the Swedish government, who had previously cornered all gambling activity in Sweden.
- Horse Racing Wins As US Treasury & IRS Issue Updated Tax Rules. OffTrackBetting.com - The U.S. Treasury Department and the Internal Revenue Service (IRS) today announced that they.
- The Italian government looked to increase tax revenue and capitalize on the country’s love of soccer by introducing legislation to allow sports betting in the mid-2000s. This allowed anyone who acquired a license to take sports betting action either online or in a land-based retail environment.
The floodgates are set to open in Sweden as online sports betting looks poised to grow dramatically in the years to come. As expected, it did not take long for international operators to raise their hand and submit license applications. This is hugely positive news for Swedes who will now have incredible access to international bookmakers who provide odds and markets for sports all over the world.
For your convenience, we have reviewed and ranked several of the most reputable bookmakers that are currently available. Here are just some of the few features you’ll discover with these online betting destinations:
- Access to worldwide markets, availability to bet on U.S. sports
- Enticing welcome offers, bonuses, and promotions for new members
- Trusted brands with a proven track record of security and reliability
In the year 2012 was generally introduced a fixed tax on sports betting and betting in Germany. This means, that any bet, which is made in Germany, a tax of 5% subject. If no taxes are paid, the bookmakers working illegally. In Austria and Switzerland. The best betting sites for live betting. Live betting attracts more and more users and betting enthusiasts. The experience of betting on ongoing matches, taking notes of the changing odds as the match progresses, offers a very dynamic experience to players who need a little more excitement.
By the time of the new millennium the betting landscape was changing with more and more gambling moving towards telephone betting and betting online. This allowed companies to move offshore to tax havens such as Gibraltar, Malta, The Caymans, etc., from where they could allow punters to bet tax free.
Background
As far back as 1934, the Swedish government aimed to gain a handle on gambling. In order to abolish illegal gambling, a tightly regulated private bookmaker Tipstjänst, was established. With a solitary firm in operation, betting activities could be more closely monitored and controlled. In 1943, the state purchased Tipstjänst and nationalised the bookmaker. This model existed for over fifty years, until in 1997, Tipstjänst merged with a smaller state lottery and adopted the name Svenska Spel.
The Svenska Spel provided betting on sporting events, lotteries and also controlled the operation of gaming machines. Changes to the law in 2002 allowed Svenska Spel to expand their offerings, with online bingo and scratch card style games legalised. In 2005, online poker was introduced, but still under the watchful eye of the Swedish government.
In 2005, Ladbrokes tried to set up betting operations in Sweden but their attempts were swiftly rejected by the Swedish Supreme Administrative Court. In 2006, an official inquiry found that under Swedish law, there was no way of stopping foreign online betting firms from offering their services to Swedish citizens.
For the next few years, the EU increased the pressure on Sweden to open up its betting market to non-Swedish companies, and to break up the monopoly in the process but this request has been met with resistance. On the 20th November 2013, the European Commission made a further call to the Swedish government to ensure that their gambling rules and regulations fell in line with the freedom of trade guidelines, alluded to in the EU Treaty. The Commission argued that the monopolistic gambling model within Sweden did not comply with EU market rules. [1]
The Swedish government have long been unapologetic regarding their stance on the gambling industry. They have cited the harmful effects that excessive gambling can have from a social and economic perspective, and have expressed their wish to have a control on this through strict regulation. Swedish media outlets who have been involved in legal disputes with the government over advertising foreign bookmakers in the past, have baulked at the suggestion that the primary mission of the regulators, is to minimise the ill effects of gambling. After all, they point to the fact that the state owned bookmaker Svenska Spel has significantly increased its promotional activities in recent years, encouraging sign-ups and betting action
Current Betting Climate
Despite the stringent policing of foreign operators advertisements, the Swedish government seem to be fighting a losing battle. In 2013, total turnover for Swedish licenced operators was down 0.3% domestically, whilst the internationally licenced firms saw a 2% increase in revenue from citizens of the Scandinavian country. [2]
With the country unable to impose any penalties on foreign operators for accepting Swedish players, there has been no reason for the major European bookmakers not to offer their services. Virtually every online bookmaker worth their salt have opened their business to Swedish customers and bookmakers such as William Hill, Ladbrokes, Coral and Betfair all provide their websites in Swedish, making it easier for players to understand the different markets.
Betsafe are a Swedish owned bookmaker who operate out of Malta. They are very popular in Scandinavia and cater to the needs of their clients, enabling them to deposit in their home currency of the Swedish Krona. Unibet is another firm with a strong connection to Sweden (founded there before relocating to the UK) and their website is focused strongly towards the Nordic market. Another Swedish firm operating on from a foreign base are Betsson. They were founded in 2001, and were one of the pioneers of live betting. These three firms all escaped the monopolistic Swedish market, but have maintained their focus on the citizens of their home nation, providing odds on the popular sports and gaining popularity in the process.
For those wishing to bet with a licenced bookmaker in Sweden, there are essentially two main options. AB Trav och Galopp is one strand of the state owned bookmakers who manage betting on the horse racing industry and they produce and run the Totalisator. Svenska Spel is the other, and they deal with all other aspects of gambling such as lotteries, casino and other sports betting etc. There are a handful of smaller companied who are licenced, but individually they only make up a small percentage of the market.
Tax
The Swedish law states that players who profit from poker, can be taxed at 30% on their winnings, if they were obtained from a company operating outside of the EU. Winnings generated from bookmakers who are licenced within the EU, are not taxable. Sports betting winnings are not currently taxed.
Funding Your Accounts
The payment options are fairly standard for Swedish customers. With no official restrictions or illegality of using foreign sites, accounts with major bookmakers can be funded through a plethora of different methods. For instance, Pinnacle Sports give customers the option to deposit in Swedish Krona via bank transfer, Visa or Mastercard, Entropay, Skrill or Neteller. The bank transfer can take up to 5 days, but the rest of the deposit methods fund the account instantly. Other sites such as UK bookmaker Ladbrokes offer additional avenues of funding, such as Paypal and Ukash. Whilst all sites offer deposits in Euros, an increasing number are facilitating the Swedish Krona.
Popular Sports
Invented by local neighbour’s Denmark, it is no surprise that handball is an extremely popular sport in Sweden, with the national team joint record holders for the number of victories at the world championship (four). Football is obviously popular and although the domestic league is not particularly strong, the Swedes can boast one international superstar in Zlatan Ibrahimovic. With a large percentage of the population speaking English, the English Premier League is keenly followed, with betting turnover high. Golf is a favourite pass time of the Swedes with current world number 3 Henrik Stenson flying the flag, and there are a total of 32 Swedes in the top 1000 players. Naturally with a cooler climate, it is no surprise to see winter sports popular, and the Swedish Hockey League (SHL) has big support. Based on average players’ salaries, the league was ranked as the fourth highest playing league in the world in 2006, and attendances have consistently been some of the biggest in Europe.
The Future
Betting Sites Online
The Swedish authorities have promised to look into deregulating their current gambling market in 2014, but they have reneged before, and it would be no surprise to see them do so again. Although there are very few licenced bookmakers within Sweden and active marketing by foreign firms is illegal, it does not significantly affect players as foreign operators are so accommodating – providing sign up bonuses, Swedish translations and the option to deposit in the Swedish Krona. Deregulation could see the Swedish government increase their revenue through licence fees and taxes, but until then it will be no surprise to see increased action from Swedish citizens with the bigger and better European bookmakers.
Legal Online Betting Sites
References
[1]http://www.bettingmarket.com/sverige151172.htm
[2]https://calvinayre.com/2014/02/08/business/swedish-gambling-market-contracts-third-straight-year/
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Betting on sports is part of the fun for many sports fans — even if their wagering hasn’t always been technically legal.
Until a May 2018 U.S. Supreme Court decision opened the door for every state to legalize sports betting, just four states allowed wagering on sports — Nevada, Delaware, Montana and Oregon. Legality, however, hasn’t stopped Americans from betting on sports. In fact, the American Gaming Association estimates that Americans spend more than $150 billion a year on illegal sports betting.
Since the Supreme Court’s ruling, New Jersey, Pennsylvania, West Virginia, Mississippi and Rhode Island have legalized sports betting. And other states are considering laws to permit wagering on sports.
But when you gamble on sports, it won’t matter to the IRS if your winnings came from a legal bet or from one that’s off the books. Your winnings are taxable income either way.
Betting Site With No Tax Return
If you plan to do some wagering in a state that’s legalized sports betting, it’s important to understand how tax on your winnings will work. Let’s take a look at how the IRS treats gambling winnings of any kind.
Sports-betting winnings are taxable income
The big question for sports gamblers: Are your winnings taxable income? As we said above, the answer is yes.
“Gambling winnings are fully taxable and you must report the income on your tax return,” the IRS says. “Gambling income includes but isn’t limited to winnings from lotteries, raffles, horse races and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.”
Although sports betting isn’t one of the examples, it’s still covered by “gambling winnings.”
Whether sports betting is legal in the state where you place your bet doesn’t matter to the IRS. If you win, you have taxable income, which should be reported when you file your tax return.
These rules apply only to casual sports bettors. If you’re a pro — “in the trade or business of gambling,” as the IRS puts it — different rules apply.
How much tax you’ll owe depends on your personal tax situation and tax bracket.
You might also owe state income tax on any money you win from betting on sports, depending on which state you live in. For example, Nevada doesn’t have a state income tax. But Maryland does, and it considers winnings from gambling taxable income. If you win money betting on sports, check with your state to see if it taxes gambling winnings.
Form W-2G: Evidence of your sports-betting win
So you win a couple thousand bucks betting on your favorite sports team. How will the IRS know if you don’t tell it? Well, whomever you won the money from — a casino, racetrack, etc. — is supposed to report your winnings to the IRS on Form W-2G. The form tells the IRS some important information, including …
- Contact information for the payer who awarded you the winnings, including phone number, address and federal tax identification number
- Your name, address and taxpayer identification number
- How much you won
- When you won it
- What kind of wager you made
- And how much, if any, federal and state income tax the payer withheld from your winnings
Generally, the payer has to report your winnings if …
- You won $1,200 or more from a bingo game or slot machine
- You raked in $1,500 or more at keno
- Your poker victory tops $5,000
- You won $600 or more and your winnings are at least 300 times the amount of your bet (bingo, slots, keno and poker are exceptions to this rule)
- The payor withheld federal income tax on the winnings
Penalties for not reporting sports-betting income
Of course, the IRS wants you to report all your taxable income, and if you don’t you could face penalties and interest on any tax you owed but didn’t pay.
Generally, the penalty for not paying income tax that you owe is 0.5% of the unpaid tax. That rate is assessed monthly until you pay the tax you owe. Unpaid tax and penalties typically accrue interest, too — 5% compounded daily from the due date of your tax return to the date when you actually pay in full the balance of any tax, penalties and interest you owe.
However, if you’re caught intentionally omitting income — like gambling winnings — from your tax return in order to avoid paying tax on that income, it could mean additional penalties. According to the tax code, trying to “evade or defeat” tax you owe on income you’re required to report could be a felony with fines of up to $100,000 for individuals or five years in prison. Plus, people convicted of tax evasion can be held responsible for the costs of prosecution.
Lose a sports bet? It might be deductible!
Just as sports-betting winnings are considered taxable income, losses may be tax-deductible if …
- You itemize your deductions
- You keep detailed records of your winnings and losses
“To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses,” the IRS says.
Any losses you deduct cannot exceed winnings that you report when you file your return. For example, if you reported winnings of $5,000, you could deduct losses only up to that amount. Additional losses would not be deductible. And if you lost $5,000 but didn’t win anything, you wouldn’t be able to deduct those losses at all.
If you’re eligible to deduct your sports-betting losses — or any other gambling losses — you’ll do so on Schedule A.
Bottom line
More than a quarter of Americans like to bet on football, 21% are interested in betting on baseball or basketball, and 20% would put some money down on a hockey game, according to Nielsen Sports. If you’re a fan of sports wagering, it’s important to understand that tax on sports betting is nothing new.
The IRS has always considered gambling winnings taxable income, and it expects you to report all your taxable income — even the money you win betting on sports.
If you’ll be reporting gambling winnings on your federal income tax return, or hoping to write off some gambling losses, be sure to keep detailed records of your wagers and losses.
Christina Taylor is senior manager of tax operations for Credit Karma Tax®. She has more than a dozen years of experience in tax, accounting and business operations. Christina founded her own accounting consultancy and managed it for more than six years. She co-developed an online DIY tax-preparation product, serving as chief operating officer for seven years. She is the current treasurer of the National Association of Computerized Tax Processors and holds a bachelor’s in business administration/accounting from Baker College and an MBA from Meredith College. You can find her on LinkedIn.