The Internet has made way for gambling to form the online gambling society. In addition, various improvements in technology have changed gambling habits just as scratch cards, keno, and video lottery terminals changed the gambling industry entirely back in the early 20th century. Therefore, gambling has become one of the most lucrative businesses present.

Therefore, there is no wonder why more and more people decide to try their luck and skills on electronic gaming machines, instant scratch cards, keno and of course, lotteries.

Trends that greatly contribute to rapid growth in the gambling industry include increased online and mobile channel usage, various technological enhancements and different regulatory changes that hit the world by storm two decades ago when the very first online casino was introduced back in 1994.

The statistics clearly show that both online and land-based gambling market size from 2009 rapidly increased its volume to a staggering 37.91 billion U.S. dollars as estimated in 2015. This means that many people enjoying their time while playing popular casino games, poker and lottery games also enjoyed some winnings that in some cases reached several millions.

This sounds like a massive opportunity to start a new life with, but for some people winning also means losing a significant amount of money due to extremely high taxes.

• Each country has different gambling taxes for overall casino gaming revenue
• Many countries tax gambling winnings are extremely heavily estimated
• Many players ended up winning impressive amount of money to give millions away due to high gambling taxes

Therefore, it all depends on the location of players who got lucky. For instance, a player who wins some money in the UK, Canada and some parts of Europe, do not have to pay taxes on their online gambling winnings.

However, some other counties like the United States require gambling winnings to be declared as part of its tax payments. The main point is that every jurisdiction has its own regulation regarding gambling winnings taxation.

The same rule applies to people who are professional gamblers. Therefore, professional gamblers are subject to the tax laws of their particular jurisdiction when they live outside of the United Kingdom. In addition, UK players who go to Las Vegas to play their games remain subjects to the gambling laws in their native country, UK.

Online gambling taxes for casino, poker, and bingo are subjects to the same level of taxation, whether betting on bingo, sports betting or poker. In the following section, we bring you several gamblers who got very lucky, won millions to be left almost penniless due to extremely high gambling winnings taxation laws.

1. Powerball Winner ($442 Million)

Country: Massachusetts, US
Year: 2016
Total Win: $758.7 Million
Total Taxes: $442.7 Million
Final Result: $336 Million

Our first example of a massive gambling win that ended up being less impressive after a person had to pay an extremely high tax is Powerball Winner who got very back in 2016. A hospital worker, 53 years old Mavis L. Wanczyk from Massachusetts, US got her dream come true when she claimed a massive jackpot and almost brought home a staggering amount of $758.7 Million.

We say almost because this is not what happened due to extremely heavy gambling winnings taxation set in the United States. Mavis L. Wanczyk brought home only $336 Million after she paid for gambling winning taxes. Her jackpot prize was the largest individual win in the United States lottery history that ended up in bittersweet emotions.

Initial she opted to take around $480.5 Million, but the federal tax in addition to high state taxes took her more than $442 Million. On the other hand, despite very high gambling winnings taxes, she got herself a nice sum to turn her life around. After her win, the jackpot was reset to $40 Million waiting for a new lucky winner.

2. 2016 World Series of Poker Winner ($3.3 Million)

Country: Nevada, US
Year: 2016
Total Win: $8 Million
Total Taxes: $3,3 Million
Final Result: $4,6 Million

Playing poker professionally can be extremely profitable especially if you compete at the most prominent poker tournament, World Series of Poker that every year gathers the most prominent professional poker players from all over the world eagerly waiting to show their skills at the poker table.

However, tax burdens can greatly cut poker winnings sometimes even in half and that is exactly what happened at 2016 World Series of Poker winner, Qui Nguyen. Once a player moves into a tournament, tournament backers immediately receive a part from his or her action from various investors in order to lower player’s risk, so players at the end see only a portion of their total winnings.

Qui Nguyen who was the winner of 2016 World Series of Poker set in Las Vegas Nevada though he will go home with a massive win of a staggering $8 Million. However, he lost around 41.51% of his total winnings due to US gambling winnings taxes that sometimes can go over fifty percent.

Qui lost around $3.3 Million, so he walked home with only $4,6 Million of his total $8 Million. Second and third place winners also lost around fifty percent of their total winnings, so Gordon Vayon from his $4,6 Million wins brought home just $2,2 Million while third-placed Cliff Josephy from his $3,4 Million left with $1,7 Million.

3. Mega Millions Winner ($239 Million)

Country: Florida, US
Year: 2018
Total Win; $450 Million
Total Taxes: $239Million
Final Result: $211 Million

Florida Lottery Mega Millions is one of the most popular gambling activities for citizens of Sunshine State mainly thanks to impressive jackpot prizes that commonly reach millions of dollars. Therefore, there is no any surprise that people eagerly try their luck on Mega Million. They hope they will score a massive jackpot and walk home with an impressive sum in their pockets.

This is exactly what happened to a lucky Mega Million Winner who scored an extremely staggering amount of $450 Million at the beginning of 2018. However, this lucky Sunshine State resident got very disappointed when his gambling tax arrived. According to state’s gambling winnings regulations, a whopping $239 Million trimmed his winning.

Therefore, instead of getting $450 Million, he walked away with only $211Million on his bank account paying for federal and state taxes that blew away half of his prize. Federal taxes in fact immediately trimmed his prize while state taxes came several days later claiming their part. Fortunately, the Mega Million winner did not have to pay any state income taxes, as his state does not have this kind of income tax.

4. Powerball Jackpot Winners ($369 Million)

Country: US
Year: 2016
Total Win:$930 Million
Total Taxes: $369 Million
Final Result: $561 Million

California Lottery also known as Powerball is another popular site for residents of California. Powerball prize depends on a number of winner and ticket sales. Powerball lottery is arguably America’s favorite national game as every year billions of tickets are sold gathering people from all over the United States together that one day when Powerball Jackpot prize may have a winner of winners.

Back in 2016, three lucky winners claimed a staggering Powerball Jackpot prize of $930 Million that when split into three parts amounts $310 Million per winner. However, thanks to federal and state taxes, the three winners got home with $187.2 Million each. Fortunately, due to their location, they did not have to pay income taxes as they came from Florida, California, and Tennessee as neither Tennessee nor Florida has a state income tax.

In addition, California law exempts lottery winners from paying that high 12.3% state tax. The winner paid around 39.6% of their winnings in federal income taxes and left home with a nice prize that still was far away from their initial winnings thanks to harsh federal tax rates.

5. Eurojackpot Lottery Winner (€4 Million)

Country: Slovenia
Year: 2014
Total Win: €21 Million
Total Taxes: €4 Million
Final Result: €17 Million

Slovenia is one of few European countries where gambling winnings in lotteries are subjects to a winning tax of 15% if you win more than 4000 euro. On the other hand, winnings gathered in casinos are not subjects to any income taxes.

However, one lucky Eurojacpot lottery winner instead of bringing home his full prize of a whopping €21 Million, left with €17 Million, as he had to pay 15% of his winning as regulated by Slovenian gambling regulations.

The lucky winner won the biggest jackpot in the history of the country’s lottery games, but he was able to collect his winnings nearly two months after winning the Eurojackpot. Before he received a cent, his initial prize was deducted by 15% tax on gambling winnings in lotteries. However, the lucky man got a quite impressive prize still, so he was definitely satisfied at the end.

6. SuperEnalotto Winner (€21 Million)

Country: Italy
Year:2010
Total Win: €177 Million
Total Taxes: €21 Million
Final Result: €156 Million

Our next example of extremely rough gambling winnings taxation system comes from Italy. Lottery and gambling are probably one of the most popular ways of spending free time for Italian players. SuperEnalotto Italian lottery is among the most popular games especially die to impressive jackpot prizes that keeps getting bigger and bigger every year.

Italy is another European country that has strict laws and regulation when it comes to land-based, online gambling and lottery where gambling winnings are subjects to 12% income taxes when wins are bigger than €1,000. The SuperEnalotto Jackpot can rapidly grow to extraordinary amounts since there is no rollover or cap limit in place.

This can lead to ticket holders playing for extraordinary nine-figure awards and that is exactly what happened to a lucky winner of SuperEnalotto back in 2010 when his ticket brought him the biggest SuperEnalotto jackpot of a whopping €177 Million. The lucky winner bought his winning ticket in Milan never dreaming of bringing the jackpot home. However, after he paid 12% of his total winnings on income taxes, he brought home around €156 Million of his initial €177 Million.

7. 2017 World Series of Poker Winner ($3.85 Million)

Country: US
Year: 2017
Total Win: $8.15 Million
Total Taxes: $3.85 Million
Final Result: $4.3 Million

As already mentioned in the article, poker players coming from US, Italy, and France have huge issues when it comes to their poker tournament winnings, as their winnings are subjects to income, federal and state taxes that often take half of their winnings.

This is what happened to the winner of 2017 World Series of Poker, Scott Blumstein as his prize of $8.15 Million was cut down to $4.3 Million after state and federal taxes hit him hard by taking $3.85 Million from his total winning.

Therefore, at the end, several players walked home with more money in their pockets than the winner of the event Scott, once the mean Tax Man has taken half of his prize. At the end, it all comes down from which country players come, so those coming from the United Kingdom, for instance, are very lucky, as their country does not have income taxes regulated, so can take full winnings home with them.

8. 2017 7th Placed World Series of Poker ($424K)

Country: Argentina and US
Year: 2017
Total Win: $1,4 Million
Total Taxes:$424K
Final Result: $997K

Another person who was hit hard by a massive tax on last year’s World Series of Poker tournament is seventh-placed Damian Salas. He was not so lucky like John Hesp and Jack Sinclar, the UK residents who went home with every cent of their seven-figure winnings as the United Kingdom makes gambling winnings including land-based poker tournament winnings exempt from taxation.

The Brits have the most to smile really in this regard as their tax has already been paid on the earning they used to make their bets. Luckier than Damian Salas were also Antoine Saout and Benjamin Pollak who are French players, but they both live in the United Kingdom.

Therefore, they did not pay taxes on their winnings. The seventh-placed Damian due to his homeland country and high taxes there proposed to gambling winnings, lost around $424K of his $1,4 Million, so he walked home with just $997K on his bank account.

However, eight- placed Jack Sinclar took more money than sixth-placed Bryan Piccioli and Damian Salas as he comes from the United Kingdom, which seems like a paradise for professional poker players. In the case of Damian Salas, he was hit by the US and Argentina Tax Man as these two countries have no tax treaty that means he immediately owned around 30% of his $1,4 Million prize to the US government.