Online gambling is a journey of adversity since the odds are stacked against you. For every few losers though, there’s always a jackpot winner – someone who has beaten the odds and managed to cash out the life-changing amount of money. An event like this can be extremely overwhelming and people can make some rash decisions and lose their money. Although the money you win is yours to spend the way you feel like it, here are some tips on how to go smart about spending it.
Before You Buy
Although the chance of obtaining lottery winnings is 1 in millions, the chance of lottery winners going broke is quite high and more common than you’d think. Before you get into the fun part and start buying all the luxury things you always wanted, you HAVE TO take these precautions.
Not that we suggest you hide under a rock or something but it is recommended you don’t shout about your gambling fortune right away. While flashing nice luxury sports cars and designer clothes on the internet is all the rage these days, you really should keep your newfound wealth to yourself. No matter how selfish people will call you, your first priority is to look after yourself.
Once people hear that you’ve finally made it, you’ll have people coming out of the woodwork, from high school classmates to long-lost distant cousins, and ask for help. They’ll come fast and be very persistent. They’ll send emails, call your phone, call your parents, even your landlord. They’ll do anything to get a hold of you and tell you their sad story in hopes of getting some of your money.
Helping a person in need is definitely noteworthy and admirable. In reality though, you’ll be mostly approached by people whose only goal is to take advantage of you.
Settle Your Taxes!!!
In the words of the US founding father Benjamin Franklin – “Nothing is certain except death and taxes”. Many gamblers are unaware of this but yes, gambling income is indeed taxable. Successful gamblers that finally get a hold of sudden wealth get a lump sum payment and then spend it all without realizing that a huge chunk of it belongs to the government.
Unless you plan to become a criminal on the run for the rest of your life, you definitely don’t want to owe money to the government. Luckily most online casinos with KYC will hand you a W-2G tax form to fill out before cashing out. Once that’s done you’ll receive your portion and they will sort out the rest for you.
If you’re playing on no-account casinos though, such as crypto casinos or decentralized casinos, you’ll be able to withdraw without any forms. However, you will have to deal with reporting your earnings yourself, which brings us to our next point.
Consultants are a slippery slope that have caused quite a few downfalls of big gambling winners. So naturally, choosing the right people to look after your money is the hardest and the most detrimental task.
In the least, you’ll need an accountant for maximum tax benefits, since gambling losses can be deducted from your gambling earnings tax. Make sure you find someone competent who can thoroughly and efficiently save you money and properly budget your wealth.
If your gambling winnings are something of the power ball level, you should also look to hire an attorney. You would be surprised by how many lawsuits wealthy people receive. People from family to strangers will feel entitled to your success and they’ll do anything to have a piece of it.
The smartest way to spend your initial first batch would be to take care of your debts. Whether it’s your car payments, mortgage, gambling, college, or credit card debt, your spending spree will be much more enjoyable once you take care of the ghosts of your past. You’ll also prevent any potential interest rates that would otherwise grow even larger in the event of you paying your debts later rather than sooner.
Invest In Crypto & Stocks
Now that you have taken the necessary precautions, it’s time to plan out a solid and secure financial future. If you’re a fan of crypto casinos and you maybe even received your payout in digital tokens, consider keeping some of them. If you, for example, bought some Bitcoin ten or so years ago for measly $1 each, a negligible investment of $100 would net you $6 million today! The crypto market is ever-growing and you might hit another jackpot by passively investing in digital coins.
Another proven method to grow your prize money further is the stock market. You can either be your own financial manager or hire a skilled and certified financial planner who will guide you to invest with the most efficient plan.
Donate To A Cause
If you have attained financial freedom through your gambling profits, you can start giving back to someone or something that you think deserves it. Support whatever passion project you’ve been keeping your eye on – charity, kickstarter, or just helping those in need. The fulfillment you’ll feel by helping others is truly special.
Although that all depends on how much you win. Everyone wants to be like Drake in God’s Plan, but it is important not to go overboard and only spend money you can afford to lose, just like in gambling. You can always send annuity payments to an organization so you won’t regret your decision later.
Take A Gambling Masterclass
If gambling got you to where you are, maybe a good idea is to reinvest some of your money into yourself, to improve at your hobby. Some of the richest gamblers in the world that have proven to be consistently profitable offer their own classes and online courses.
Gambling legends such as Daniel Negreanu or Phil Ivey are some of the few gambling pros who give away their tricks for a price. If you possess the financial means why not just further expand your skill set and learn from the best?
Start a Twitch Channel
If you’re a passionate iGamer, who just can’t get enough of thrill from gambling entertainment, why not take the things to the next level? Start a live streaming channel! Casino streaming is the hottest meta in the live streaming industry right now and with your newfound money, you have the means to invest and create a high-quality and entertaining stream channel. Who knows?! You might even get to the popularity heights of Twitch streaming legends such as Roshtein.
Twitch viewers are always hungry for gambling content such as slot machines or roulette. By investing in your channel, you can earn even more money with ad revenue or subscriptions from fans. Slot streamers moreover get treated like royalty by online casinos. You’ll be a certain VIP with high roller benefits. Streaming your gambling sessions really has no downsides and it might take your betting experience to a whole new level.
Sounds Too Good To Be True? Don’t Do It!
Sometimes the smartest way to spend your gambling winnings is to not risk them further at all. After all, you’ve already gambled so why risk further? With big money comes even bigger responsibility and you’ll be pressured into all sorts of things.
The so-called experts will insist you follow their advice, which will leave you feeling even more stressed than before you ever got the money. The point of your winnings is to enjoy them. If you don’t feel comfortable with the smart methods you’ve read here or anywhere else, simply do not invest in them if you don’t believe they’re worth the risk.