You only need to take a look at Canada’s southern neighbors to see that there are several US states which heavily tax sports betting online. Each US state has their own approach, with some opting for a far more manageable percentage when it comes to taxing the sportsbooks and their players.
Now, with that in mind, what are the taxes like for online sports betting in Ontario? Let’s take a closer look at what you are going to have to deal with in terms of paying taxes on your winnings.
At the time of writing this article, the tax percentage on sports betting in Ontario sits at a very round (and beautiful we might add) 0. You read that correctly, there is currently no taxation on sports betting winnings in Canada or Ontario. So, why is Ontario so different from states in the US when it comes to having their winnings taxed? Firstly, the law in Canada states that all players who gamble with these sportsbooks are amateurs, no matter how successful they may be with their betting endeavors. So, for you, this means that absolutely none of your sports betting winnings will be taxed. Not one single penny of your winnings will go to the Canadian government.
The only exception that is made in Canada is for professional gamblers. For the most part, we have only really seen this happen for professional poker players and that makes sense to be fair. Many of these players are taking home millions of dollars for their poker efforts. For now it would seem that only those who are true professionals will be taxed. As far as sports betting goes though, how can one really be professional? From what we can gather, there have been no exceptions made on sports bettors in Canada which means that even the best sports betting fans won’t be classified as professional.
This is just one more reason you should love your country. The government has had concerns about the lack of taxation on sports betting revenue but from the players themselves. The government is leaving you well and truly out of the discussion. Instead, Canada and Ontario have been discussing taxing the massive revenue that the sportsbooks themselves are bringing in from being in Canadian markets.
What has been the hold up then on going forward with taxing these sportsbooks? Well, it’s only the Canadian government looking out you yet again. The concern is that if the government begins to tax the sportsbooks in Canada, that they will slowly start to increase the hold percentages on players’ bets, which in its own right is a form of tax on players that bet on these sites. If they did tax these sportsbooks, it could start a domino effect which would see players leaving these sportsbooks to play on gray market sites again to find lower rakes percentages.
At the time of writing our news article, nothing has changed on the taxation of sports betting. For now, it appears that everything is going to stay just as it is. You still won’t be taxed on your winnings, and sportsbooks can still rake in huge revenue streams from the traffic they receive on their sites.
If you take a look at the state of sports betting in the US you’ll see that their states have certain tax percentages on legal gambling. However, this does not mean that Canada operates in the same way. Check out our guide at TheGruelingTruth.com to see the current state of sports betting taxation rates in Ontario.
Our guide not only gives you the current sports betting tax situation in Canada but we take a closer look at what is currently in the works for the future as well. Check out our guide to stay on top of all the potential changes.
As we have seen in different US states, the tax rates can vary. Check out our guide at TheGruelingTruth.com! It sheds some light on whether this will be the same in Canada for each individual province as well.
Players must be 19 years of age or older to reach the minimum age for gambling in Ontario. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) www.igamingontario.ca; or (b) www.connexontario.ca.
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