What are winnings from gambling?
Gambling is considered by many as the worlds most preferred past time for many centuries. People have gambled through their lives just for fun or even for livelihood. Some people do gambling as a profession, some people for fun, some people for business and many others just out of curiosity, just to know what it is.
So as we all know and we have heard all that gambling is all fun and injurious to wealth if it goes out of proportion. As the name suggests gambling is a game where winning and loosing is on an equal probability. There is no sure fire way except for hacking or cheating which can give you millions of dollars in winnings in gambling. So you can win or loose depending on you luck and technique and experience in any of the zillion games of gambling.
Gambling and Money:
Mostly gambling is played with money
as the prime factor. Small time gambling such as gambling at work places or at family reunions or as a past time after your mid day meal in your work office attracts only a small amount of money. Most of these money generally go unaccounted for as it is strictly and purely between individuals. Any dispute arising out of these gambling functions will have to be settled by the players themselves. Most of them have rules to play around most others are just past times and may not even involve money. In these cases, the money which is generated need not be accounted to the government nor may one need to apply for a tax. But this constraint is bound to vary by the law of the land. But this is a more general observation.
Real time gambling is the gambling which is done in the real world in casinos. This is where the real money is generated. The casinos can be live casinos or even online casinos. Even online casinos play with real money but only difference is that the money is in electronic form and the money gets credited or debited directly from your accounts. Either way this is the place people earn some real money and also loose some real money. So, what is all the hype about the money in real time casinos? The thing is really simple. Either you loose or win in a casino, either you may make huge money in the form of winnings in gambling or you lose huge money all at once.
When ever you get your income tax
form, there would be a column that asks you to specify the other notable sources of income. It safe to inform the government about any of your winnings in gambling. This is because all winnings in gambling will come under your taxable income. If you loose heavily, you still might be able to get a few exemptions. So find out what your law book says and do take care of your winnings in gambling before the revenue services come after you.