Itâs a lot easier make money from shares. A well diversified portfolio etc. over the long term would be expected to return you money, where as gambling youâre expected to lose most of the time. Itâs also a wealth tax.
One of the major reasons Iâd imagine that betting is tax free is precedent from the lottery etc. which were heavily relied upon at the foundation of the state to make it more attractive. Youâre taxed on your lottery winnings in the states for example.
The other thing is if you charged CGT on betting then you could offset capital gains elsewhere by losing money on betting, which would be fairly messy, and open to abuse.
That CGT thing would be deadly if you were getting shares through your job. You know youâre getting a certain amount each year, You could figure out what the CGT is due and have a bunch of essentially free bets.
No it doesnât quite work like that. Youâd have 33% of your losses covered, not 100%, but that would certainly be more than enough margin for you to make money on it.
IG used to work by taking the spread between trades and then hedging out their risk to cover any profit the client makes. A few years back they did a big project on the P&Lâs of their customers and realised they were by and large losing their bollox. So they donât bother hedging anymore (bar if someone has a huge position) and just take the bets themselves like a bookie.
I donât think that would have won. They did finish in the top 8. And anything about where theyâd play next season would have been too suspicious because their administration was well flagged, really the gamble was on liquidation but you wouldnât get massive odds on that at the time. Relegation was probably as close as it could be played for maximum value but clearly doesnât stand much chance of success.