For example, the UK hasn’t taxed gambling profits since it changed its laws in 2001. If you aren’t in a country that taxes gambling winnings, you may be tax-exempt. If your winnings fall under the thresholds, you won’t be given a form but you can self-report your winnings on an IRS Form 1040. If your winnings are reported, federal taxes will be withheld at a flat rate of 24% of the amount. In the US, if you win $1,200 at a poker or blackjack game, you will be given an IRS Form W-2G to pay taxes on your prize. Every country has its own threshold for tax-free winnings. Taxation on cruise ship winnings usually depends on whether the casino operators believe the amount you’ve won is worth reporting to the state. Even though a big payout is the ultimate goal for most punters, sometimes it helps to win less on a casino cruise. Tax is a major factor to consider before setting sail on a casino cruise. How gambling winnings are taxed on cruise ships

In the US, if a cruise travels within 12 miles of the American coastline, no gambling activity is permitted because of state and federal laws. Once a cruiseliner moves out of international waters into territorial waters, it must follow the laws of the country it has entered. This distance varies from three to 12 nautical miles depending on the country and its legislation. These new laws can also be in effect when the ship is within a certain distance from the coast.

The ship will then fall under the jurisdiction and laws of the country it has docked in.

This means if a ship is registered in a country where gambling is illegal, gambling activity won’t be allowed on board.īut this changes as soon as a ship docks or nears the coastline of another country. Instead, cruise casinos follow the laws of the country the ship is registered in. Maritime law is not fixed or black and white. But how are these mobile casinos governed when they aren’t on land? And the variety isn’t limited either cruises can even host competitive live poker tournaments and championships.

Some cruise casinos have over 300 games on one ship. They aren’t just a pit stop with a few games but rather a fully equipped gambling venue offering a long list of casino games. Cruise ship casinos today are beyond impressive.

Casino boats international waters rules