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In Ireland, players who win at casinos, bookmakers or lotteries generally do not have to declare their winnings to Revenue. However, the tax treatment of your winnings can change if you use the money to generate income or investment gains. Here's what you need to know.
Irish players do not pay tax on winnings
The Taxes Consolidation Act 1997 states that winnings from betting, lotteries, sweepstakes and games with prizes are exempt from capital gains tax (CGT). Under section 613, the exemption covers winnings from betting, lotteries, sweepstakes and games with prizes. Essentially, Revenue will not levy CGT on winnings from gambling.
So, if you score a major win, you do not need to worry about capital gains tax. What you do with that money afterwards, however, might change things.
Operators pay betting duty, not the player
It's important to distinguish between what you owe and what bookmakers pay. Under Irish betting duty rules, bets made directly with a licensed bookmaker are subject to a flat 2% levy paid by the bookmaker. This applies whether you bet online, in person at shops, or over the phone. Meanwhile, any commissions taken by intermediaries that connect players and bookmakers are also taxed at a flat 25% rate.
These financial duties are paid by the operators, not the players themselves. Revenue requires 2% of every bet made at a licensed bookmaker, plus the 25% commission on intermediaries. Players are in the clear from betting duty but watch what you do next.
What changes once winnings are invested
Here's where it gets more complex.
When you invest your winnings - for example, by buying shares or property with the winnings - the profit generated is liable to capital gains tax, and interest earned on winnings left in a deposit account is subject to DIRT. Revenue treats that income or gain as it would any other investment return, separately from the original gambling win.
So, while your initial windfall is tax-free, Revenue will tax any further income or gains generated from those wins the regular way.
As a savvy bettor, your best bet on gambling taxes is good records. You might need them later if investment or income-tax issues arise.
In summary, under Irish law, gambling winnings are generally not taxable. However, if the money generates interest or investment gains, those may become taxable under ordinary income or capital gains rules. If in serious doubt, seek professional tax advice.