It is very likely you as a bettor after cashing out your wins from betting sites may have thought about paying tax on the money you made especially if it is huge.
Having this kind of thought shows you are sane and have the good of your country at heart, it shows you want to remain within the ambit of the law regarding everything you do.
In South Africa where betting and gambling is gaining grounds and citizens making money off their bets, you might be wondering if the tax should be paid.
Well, the truth is bettors are not expected to pay tax on the money they made off their bets and gambling.
You may be wondering why since it is an income on the part of the bettor.
Well, in South Africa, in most cases, bet winnings, as well as gambling, lottery winnings and competition winnings, are exempted from tax.
This is because betting games are seen as a hobby or a leisure pastime, rather than a profit-making venture.
Whether you hit a jackpot or rake in a small amount in terms of winning, no tax is expected to be paid. Whatever you win is yours to keep, every dime goes into your account.
This applies to whether you bet online or do so at a casino location offline.
While bettors are not expected to pay tax, Casinos and bookmakers, on the other hand, are required to pay tax either in South Africa or in the country in which they are licensed and based.
This brings us to the conclusion that while South African players are exempted from paying any tax on their winnings, the responsibility falls instead on the casino operators themselves.
The legislation around South African internet casinos and another medium of making money online are still being debated, there are chances there could be changes in future. Bettors should make good use of the present situation.