No Tax on Winnings with Bitcoins

Published July 4, 2013 by OCR Editor

No Tax on Winnings with Bitcoins

Are Bitcoins the future of online gaming?

Bitcoins have become a very popular way to transfer money online and avoid paying taxes.  Although many governments in the world are attempting to monitor and regulate the transferring of Bitcoin transactions due to attempts at money laundering, drug trafficking and other illegal dealings, use of this online transaction method is reaching new heights.  Bitcoins were created by Satoshi Nakamoto, a pseudo name for either a person or group who dubbed the method a peer-to-peer electronic cash system based on an open source cryptographic protocol currently not regulated by any authority.  

Online Gambling

Bitcoin is becoming an ideal digital casino chip.  It is an immediate, private and irreversible method with many benefits for online gamblers and operators:

1. Visa, MasterCard and Paypal do not reach all countries and Bitcoins reach everyone, everywhere with an internet connection.

2. Due to the fact that Bitcoins public ledger is decentralized, there is no possibility of confiscation of holdings by a third party.

4. Bitcoins completely eliminate costly chargebacks and fraudulent transfer reversals by merchants because all payments are completely final.

5. There are huge savings on processing fees because Bitcoins fees are user-determined.

Currently, Bitcoins are most used in the online Poker industry with the best operators found at OCR's top ten online casinos page.  There are many online brands considering the use of bitcoins to increase their global reach and provide even better more attractive ways to allow players to make transactions.  

Bitcoin Conference

During the first week of July 2013, there is a large Bitcoin conference being held in London, England.  The event is an invite-only event for over 200 people from around the world.  The major focus will be on how Bitcoins will play a major role in the future of online gambling, ecommerce, regulatory challenges and how to market Bitcoins so online gamblers trust the new method.   

Players can play online poker and other online casino games anonymously and can also avoid paying taxes on their winnings making regulation of the new method a top priority for governments all over the world.  Only last month the US Dept. of Homeland Security seized the largest Bitcoin company in the world because of suspicions of major money laundering.  If used for online gambling, this method will become the most popular way to play.

See also

Indiana To Hike Tax On Riverboats

Iowa Race All about Casinos

Netherlands-Facing Online Casinos Could Face Harsh Tax Policies

UK Online Gambling Revenues Rise In the Face of New Tax Regime

GBGA to Challenge UK Point of Consumption Tax at EU Court of Justice

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