I've been trying to find clarity on this but its still quite unclear to me.
If I make money on Polymarket, how is that income taxed? It seems to me that it could be all sorts of different ways, maybe even not at all if its considered gambling? Its very unclear to me.
I found this question:
https://community.ato.gov.au/s/question/a0JRF000001vnWT2AY/p00318288?referrer=a0N9s000000DacDEAS
But all the response says is that you wouldn't pay CGT on the gambling activities, and directs people to a link that still doesn't offer clarity. It and other things I've seen seem to indicate that holding tokens can be considered an investment and taxed as such, but you don't make money on Polymarket through speculation and tokens changing in value you make it through betting.
The example given on the page uses a lottery and seems to indicate that the money made from Polymarket is untaxed and only gains in value of tokens (which there are none on Polymarket) would be taxed.
Is Polymarket considered similar to this lottery?
If so does that mean money made from Polymarket bets are untaxed?
If not what are they taxed under?
If they are taxed, does how long I hold the tokens matter?
Would it matter if I withdrew to fiat currency or is it taxed the same regardless of if I do so?
Does it matter how long a bet lasts?
Is it taxed the same way regardless of how I participate on Polymarket, or do my specific activities impact my taxation?
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