Foreign sports betting and winnings : is it possible avoid a tax audit?

Who should declare their winnings?

Circle game players qualify as professional players and therefore it is imperative that they declare their winnings to the government (if not they may potentially face heavy reprisals if they are ever subject to an audit because then the practice will be considered money laundering); as for those placing the bets, they are not subject to any legislation. Indeed, just like with casinos, these games are considered games of chance. A chance for you because, as a matter of fact, it’s clear that placing winning bets is not attributed to luck alone, yet that’s still what prevails under the law. As a result of this inconsistency in legal standing, your winnings are handled differently.

What needs to be declared?

That means you’ll have absolutely nothing to declare ! The only potential downside is an increase in your taxes due to an increase in your assets. It doesn’t matter how you came into this money; what matters is that your assets have increased. You’d have to really be a high roller for that to happen and you should be so lucky!

To avoid any of these problems the best thing to do is still to set up a virtual wallet which will allow you to engage in gambling activities without your bank knowing anything about it. It’s really by keeping these affairs private that makes it possible to avoid most audits.

As far as the government is concerned, unless you move, you’ll have to declare your income and your earnings if you’re a poker play and just your assets if you’re a punter. Of course, you can try to hide your assets but then the risk will be yours alone. It might be better to create a small business structure: you’ll be taxed but you’ll be able to live in the country completely legally.