Despite the lack of legal 12play casino betting establishments in Singapore, the residents of the city-state have been prolific gamblers for decades because of the state lottery. In particular, some Toto lottery bettors spend $40 per month on Toto alone and it is a part of their daily lives and culture.
Are lottery winners exempted from tax? If you happen to win in the annual Toto Hongbao, where will you spend it?
Is Toto winning tax-free?
To answer the lingering question above, lottery winnings are referred to as windfalls just like an inheritance and TV game show winnings. Being a money that comes from unexpected fortune and not an income, lottery winnings are not under the tax responsibilities. Therefore, you can receive your winnings in full if you happen to win in the 4D results.
Additionally, most lottery operators encourage their jackpot winners to choose the option of receiving their winnings partially in installments that are being paid annually. This is surprisingly beneficial as people tend to consume their winnings faster if they receive the amount in full.
Where do people commonly spend their lottery winnings?
People have different perspectives on lottery winnings so it is not surprising that people have different opinions on where they want to spend their instant wealth that came from the lottery.
Car
Buying an expensive car is among the most common online lottery win expenses in almost anywhere in the world. For a very long time, expensive cars have been an instant symbol of wealth and high status in society. Most lottery winners think about purchasing first something that will show other people that they have ascended on the pyramid of social status.
House
Next to cars are buying a piece of real estate, which is also a common type of investment even for non-lottery winners. People who are much more frugal put this item on their bucket list of where to spend their instant wealth.
Gadgets
Spending money on gadgets is very common among the younger generations. The natural need to connect whether physically or technologically is a feature in human survival. Pieces of technologies such as computers and espresso machines are not only possessions but a form of status symbols.
Travel
This item is very common among millennials where traveling with compensation provides them with a strong sense of purpose and identity. The luxury of traveling, dining at high-end restaurants, and doing activities are a common dream among the adults.
Business
For people who are in middle age or higher, it is a common item for these people to invest in any venture that in turn will provide them with profit. Businesses and other types of investments can provide a sense of security and could also guarantee a continuity on gaining incomes.
Charity
Spending lottery winnings on charity or supporting causes is rare but not surprising. This type of investment is very common among lottery winners who are already gaining a steady flow of lucrative income. They think that they don’t need to receive a huge amount of money so they want to give them to people who will benefit more from their winnings.
Gambling
Lastly, it is no surprise that lottery bettors will also think of spending their lottery winnings in any form of gambling as winning in betting games is highly addictive. Trying to win for the second time is prevalent among lottery winners.
Conclusion
In February this year, the jackpot prize for the Toto Hongbao draw was increased to a staggering amount of $12.8 million. Ever since the announcement, people have been lining up outside of Singapore Pools outlets to try to get the highly coveted prize. This is an indicator that Toto will continue to provide lucrative payouts on Singapore lottery participants.
