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Thread: Tax on winnings

  1. #1


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    Tax on winnings

    I was recently in two casinos in Mexico-City ... in both of them you have to pay taxes on your winnings and maybe all the casinos do that in Mexico-City (I'll find that out in the upcoming weeks).

    So my question is: Is there a possibility to find out the "real" expectations of winnings, ror, etc considering the taxes?

    Is there maybe an option in the CVCX software for that case?


    Thank you! :-)

  2. #2


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    If they collect taxes on your winning, do they give back a % of your losses? After all, you get tax deductions for losses.

  3. #3


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    Quote Originally Posted by ZeeBabar View Post
    If they collect taxes on your winning, do they give back a % of your losses? After all, you get tax deductions for losses.
    You must be joking.

  4. #4


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    They don't give back anything when you lose.

    So is there any chance to find out what I asked in my original post?

  5. #5
    Senior Member Jabberwocky's Avatar
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    Don't play anywhere that enforces exactions. That should be a no brainer.
    Vincit Qui Patitur

  6. #6


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    Is it really a no brainer? Even with good rules?

    That's why I'm asking.. because I want to find out, if it's worth or not. But I don't know how to calculate the "real" expectations of winning, ror etc..

  7. #7


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    Quote Originally Posted by Grobbelaar View Post
    Is it really a no brainer? Even with good rules?

    That's why I'm asking.. because I want to find out, if it's worth or not. But I don't know how to calculate the "real" expectations of winning, ror etc..
    Depends on the player himself (regarding his own stats). Assuming tax only on excess of cash out versus buy in, player would have to determine viability with himself as guinea pig.

    Just pulling numbers our of thin air (you can replace with the real ones), assume your long term stats are average $1000 win and average $1000 loss, with a 60% win factor. On your Mexico holiday, you have time for 10 sessions if 2 hours each. This likely puts you at a min $25 table with average bet of $100, 20 hours at $10000 per hour, $200000 total action with 1% edge equating to the $2000 net suggested.

    You win $6000, lose $4000 for an initial $2000 profit. Now, your 10% tax on wins will be $600 leaving you with an overall net of $1400. You’ve determined that your long term edge is 1%. That $600 takes a pretty chunk out of your 1%. Reducing 1% edge by 10% tax reduces edge to .7%. Not very palatable.

    Now, for the player who experiences a far higher percentage win rate, further suggesting an average loss at or below his average win, then, depending on the actual tax rate and tax rules, it might become more palatable. Assuming of course that travel is not factored into expense as this was a holiday to begin with.

  8. #8


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    So it's not that easy to determine the edge.

    So .. in one casino they said you have to pay 12.5% of your winnings (each time you cash out) ... and the other one 5.4%

    So... 12.5% seems very high it's not really worth I guess...... 5.4% sound possibly worth it .... the one with 5.4% has a house edge of -0.27

  9. #9


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    Quote Originally Posted by Grobbelaar View Post
    So it's not that easy to determine the edge.

    So .. in one casino they said you have to pay 12.5% of your winnings (each time you cash out) ... and the other one 5.4%

    So... 12.5% seems very high it's not really worth I guess...... 5.4% sound possibly worth it .... the one with 5.4% has a house edge of -0.27
    So, if I understand correctly, “tax” rates vary by store. Okay, so a store tax includes a grifters premium. Ask yourself what your edge is on your standard game. Are you playing h17 or s17. Are you playing surrender or non surrender. If yes to surrender, is it late or early surrender. If early surrender, is it es10 or everything. Those are the big ones.

    Assume you have an edge of 1% on your at home approx .63 game. The .27 game is a bonus of .36 you have more than doubled your edge, therefore more than doubled your margin. Just so I don’t have to pull out pen and paper, assume your edge has doubled (which now begs the question of your edge on the no surrender h17 game I just described). There should be an increase in $win rate, decrease in $loss rate and probable increase in % win rate. Again, I’ll just pull out some numbers out of thin air $, no I won’t.

    To keep things simple (still avoiding pen and paper), just double your previous calculated net win from $2000 to $4000. Decrease your tax rate to 5.4% of wins only which is now $12000*.054 = $648. Your new net is $3352. This doesn’t account for factors which should enter into the equation - but to answer your question, it’s more palatable definitely. Now, factor in your true stats, amend them to account for the better house edge ($win and loss and %win) and the equation really goes more into your favour for playing.

  10. #10


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    The problem is, it's not really 5.4% ... or what I want to say .. just a little example. I buy chips for 100$ and lose it ... then I buy chips again for 100$ .. now let's say I double it.. now I go to the check-out ..... they see that I bought 100$ and come back with 200$ so I have to pay 5% from the winning.. so 5$ lost.
    If I had bought chips for 200$ from the beginning, then I wouldn't pay taxes at all!
    So it depends how much chips I buy and how long are my sessions.
    So it's not the same if I win in one day 4000$ or in several days with losses and wins in the meantime.

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