Singapore Live Casino Tax: Do You Pay On Online Winnings?
Are you filing your income tax, and you are wondering if that big live casino or lottery win needs to be reported? Stop worrying, my friend. The Inland Revenue Authority of Singapore (IRAS) clearly states that gambling winnings are not taxable – instead, they are considered as windfalls and not as income. That means you don’t need to declare these winnings on your Income Tax Return (ITR). This guide will explain this simple rule so that you know if you are following the local laws correctly if you are planning to play at Singapore live casino.
Gambling Winnings Are Completely Tax-Free
The IRAS policy about gambling winnings is very clear – the cash you win on bets or lotteries is not taxed. That means that any of your winnings are entirely tax-free cash prizes from all legal gambling activity in Singapore from:
- 4D
- TOTO
- Singapore Sweep
- Singapore Pools – football betting, basketball betting, horse racing, etc.
Casino games
In short, you don’t need to put them in your tax declaration because they are not handled as a paycheck or business income. But rather, they are only viewed as a windfall.
| Gambling Activity | Are Player Winnings Taxable? | Who Pays the Tax? |
| Casino Games On Integrated Casino | No | Casino pays tax on its revenue |
| 4D, TOTO, Singapore Sweep | No | Operator (Singapore Pools) pays duty on bets |
| Sports & Football Betting | No | Operator (Singapore Pools) pays duty on bets |
| Horse Racing Betting | No | Operator pays duty on bets |
The Tax Is On The Casino… Not On You
Although you will not be taxed on your winnings, Singapore imposes the gambling duty on the operators. So while you are enjoying your winnings in full, the integrated resort casino or betting services are the ones who will be paying taxes based on their Gross Gaming Revenue (GGR). And it is computed every month based on the GGR from the games offered by the casino.
GGR = total amount of net wins on all games – Goods and Services Tax (GST)
Do You Need To Pay Your Online Live Casino Winnings?
The same rule applies to all the winnings of casual players to online live casinos – they are not subjected to taxation. Simply, where you win at Marina Bay Sands or at Singapore live casino like AS128G, the treatment is the same. Your gambling winnings are not subject to income tax.
What Are The Best Practices When Playing At An Online Live Casino?
If you’re a casual live casino player and only play for fun, you do not have to submit any special forms to IRAS regarding your winnings since there is nothing to tax.
But while they are not taxable, we highly recommend that you keep a small record of your gambling activities, especially on your winnings and losses. Those gambling journals can come in handy in case the IRAS inquires where you get your money or when your gambling activity begins to look professional. These records will back up your claim as a casual player; besides, it’s a good practice for your bankroll management.
What You Must Know Before You Gamble And Play?
You should only play with legal operators because the tax-free rule only protects your winnings from the licensed authorities like SG Pools, Marina Bay Sands, and Resorts World Sentosa. That means that if you will be engaging in an offshore Singapore live casino, you have no legal protection.
While IRAS views winnings from casino games and gambling activities as windfalls, being a professional gambler is a different story. If gambling is your profession, then your winnings will be viewed as income. And with that, your net winnings for the year would be subject to taxation.
But if you’re just playing live casino games just for entertainment, even if you play regularly and win big, you will not be classified as a professional gambler.
Wrap Up
The tax-free nature of winnings in legal gambling activities in Singapore is advantageous to players. And even though you will not be paying taxes when you win at Resorts World Sentosa or Marina Bay Sands, you have to pay a levy or an entry fee upon entering.
FAQs:
If I Were A Professional Gambler, Could I Deduct My Losses?
Yes. If your winnings will be considered as taxable income, then you must also declare your gambling losses as business expenses. This way, you can reduce your taxable net profit.
Do I Have To Declare My Online Live Casino Winnings To IRAS?
If you’re a casual player, you don’t need to declare this since it is not taxable income, but be sure to keep a record handy in case the IRAS asks where your money came from.
Do I Have To Pay Tax If I Win A Big TOTO Jackpot?
No. These are considered windfalls, and you will not be taxed for them.