Taxes on EPL Crypto Bets

Not many saw cryptocurrency mixing with the English Premier League, but the sector found its way into the field. Several deals have been made with various clubs, paving the way for potential long-term partnerships for this unlikely pair. Bitcoin ads were recently seen during a Tottenham versus Liverpool match. It’s the first of its kind that got people curious about the sector’s future in a well-loved sport by many. With 70% of the country’s population watching the EPL, it won’t be long until cryptocurrency makes giant leaps in the UK. Along with potential returns, people wonder whether to pay taxes on EPL crypto bets.

Cryptocurrency in Sports

Many English Premier League clubs signed deals with crypto exchanges and projects for merchandise, ticket sales, sweepstakes, and several other promotional events. A lot of these partnerships were penned in 2019. Fast forward to this year, and the odds keep favouring the crypto industry.

Blockchain and crypto are being used in the sports industry in many ways. Plenty of wealth can be invested in this sector, particularly in endorsements, sponsorships, digital merchandise, and betting. People turn to digital currencies to bet on their teams, and for a good reason.

Here are the benefits of crypto betting in sports:

  • Quick and efficient transactions. Cryptocurrencies are stored in secure crypto-wallets, which allows a taker to transfer funds quickly, saving a lot of time.
  • Enhanced privacy. No breach of data happens in crypto because intermediaries are absent in such transactions.
  • Zero withdrawal fees. Online sports betting, like other digital transactions, typically incur withdrawal costs. However, crypto betting allows the player to withdraw winnings without minus the fee.
  •  Wider acceptance. It’s easier to access online sports betting companies and offers a hassle-free background verification process.

EPL Crypto Bets

Many sportsbooks now offer crypto betting for the English Premier League. Depending on bookies’ policies, bets can be as general as predicting the winning team or as specific as a particular player making a goal at a certain minute.

Some of the most popular bettings offer on bitcoin sites include:

  • Title (who wins the Premier League);
  • Top Four (which teams finish in the top four); Relegation (which teams land the bottom three and will be relegated);
  • Goalscorer (who will be the top goalscorer of the current season); and
  • Points Handicap (points-based betting depending on how good the team is)

Taxes on EPL Crypto Bets

Her Majesty’s Revenue and Customs or the HMRC handles the collection of taxes and administration of related regulations. In general, cryptocurrencies like bitcoin are taken as ‘cryptoassets‘ based on the updated tax guidelines. Crypto is taxable by law based on the owner’s activities and for which purpose crypto tokens are being used.

Crypto holders who use this currency as a personal investment should pay Capital Gains Tax or CGT on losses and gains. Buying crypto (i.e., GBP to BTC) does not require paying a tax. Nevertheless, betters still need to secure a copy of their transactions.

However, winnings from gambling generally avoid taxation since it is not considered as investment returns. The HMRC states that gambling and betting are not classified as trading income, so they usually do not incur taxes.

Still, every case should be evaluated before determining whether a betting event is chargeable or otherwise. It’s why a person should keep track of their crypto betting transactions at all times.

Final Thoughts

If you are looking to delve into cryptocurrency betting in the EPL, you must be vigilant in keeping a record of your cryptoassets and transactions.

Whether you are new to the trade or handling more betting deals than you can manage, a reputable tax tool like ACCOINTING.com can do a stellar job of organising your records for you. Have a professional handle your UK taxes on EPL crypto bets so you can bet on your favourite teams without hassle.