In most countries around the world, gamblers need to pay tax on all their winnings and the casinos need to pay a tax on their Gross Gaming Revenue. Every country collects GGR differently, but generally it is considered to be a percentage of the net profit that the casino brings in. In this guide you will gain insight on how the taxation works in different countries around the world.
The gambling tax regulations vary according to where you reside and where you play your favourite casino game from. You will notice that in some countries it is totally illegal, while in others where it is legal there are certain rules and regulations that apply. You will find instances where the real money casinos will be obliged to pay tax on their profits, whereas other impose the tax on the individual players and their winnings. Some taxes are very high while others are very low. Obviously, gamblers and casino operators always look for the lowest taxes possible to reduce their expenses as much as possible.
How Gambling Taxes Differ Around the World
As already explained, the legislations are different from one country to another and depends on whether you gamble for fun or as a profession and main source of income. Therefore, if you play at a casino site and you win, but you have a bigger source of income and you do not rely on gambling to earn a living, you will not be taxed. The below chart portrays the top 10 countries that portray the highest and the lowest amount of tax.
Countries including Kenya and Ireland do not tax the players for their winnings, instead the casino operator has to pay a percentage of tax on the total bets or winnings. For instance, Irish operators have to pay 1% tax on all placed bets, whereas in Kenya the operators have to pay 7.5% tax on all the recorded winnings. A couple of years ago, Kenya increased the tax percentage to 35% to discourage young adults from pursuing a career in gambling. On the other hand, the Cambodian government lowered the tax percentage to encourage businesses to invest in this industry.
As already mentioned, there are countries where only the casino operators need to pay the tax. The below list depicts the countries whereby you can legally play at and where the casino pays all tax fees. Therefore, you will not be charged with any extra fees on your winnings.
🇦🇹 When playing in Austria you will notice a monopoly in the gambling industry. Casinos Austria owns most of the casinos found in Austria, apart from others located all around the world. They have been operating casinos since 1934. All casinos in Austria pay all the taxes. Therefore, players will not be responsible for paying any of the taxes regardless of whether the casino is online or physical.
🇧🇪 In the 1300s, gambling became popular in Belgium, while gambling online became legal in 2002. The procedure with licensing is the same for both online and land-based casinos, however, there is a limited amount of gambling licenses that can be handed out to companies. The Belgium government does not impose any taxation on land-based and online casinos. Although the players and the companies are not taxed, the casino operators must contribute a yearly fee in exchange for the license.
🇧🇬 The gambling scene in Bulgaria started in 1933 without any type of licensing or taxation, until 1998. Clear regulations on online gambling were put into place in 2012 and sites made an appearance in 2013 with a new tax turnover. You will not be charged any tax on your winnings, whereas operators pay €17,500 for every casino they own.
🇨🇦 Gambling has been present in Canada since the 1400s. In 1892 everything was banned but eventually, bingo, raffles and horse racing was legalized again in the early 1900s. Nowadays, you can find casinos located in most provinces.
🇨🇿 During the 1900s, there was a boom in the casino scene of Czech Republic, having around 200 land-based casinos located all around the island nowadays. The operators have to pay around 6-20% on their tax profits.
🇩🇰 Denmark Denmark is not known for having many casinos. You will find less than 10 in total, and they are all regulated by the Danish Gambling Authority. As a player, you will not be charged any tac on your winnings but casinos have to pay from 45-75% of their gross revenue.
🇫🇮 The only one legal casinos in Finland is located in Helsinki and was built in 1991, despite their long gambling history.
🇩🇪 When looking at tax rates, Germany has the highest gambling tax in the world. The casinos in Germany are taxed 90% of their gross revenue. The private casinos are taxed differently and have their own rules.
🇮🇹 Back to the time of Roman Empire, they also used to gamble in Italy. The first casino was opened in 1638 in Venice. As the online casinos appeared, regulation was introduced in 2006. Operators need to pay only 1% on their total revenue.
🇲🇹 The first sight of gambling in Malta dates back to 1922. The gambling scene is now regulated by the Lotteries and Gaming Authority who is a popular casino licensor for both land-based and online casinos. Casinos pay approximately €46,000 for licensing fees, as well as 15-40% of their turnover.
🇷🇴 All forms of gambling were banned in 1945 in Romania when Soviet Union took control of Romania. In 1989 this ban was lifted as the new ruling democratic government took over. Gambling online was made legal in 2010 as long as all operators obtain a government license.
🇸🇪 You will find only one operator in Sweden with a granted license, Svenska Spel. In 2002 the online market was granted rights to broaden the online market with the Lotteries Act. 13. UK In 1968, gambling was legalized in the UK. In 2005, the Gambling Act was amended to include online and regional casinos. The operators have to pay 2.5-4% of their gross revenue.
Countries With No Online Gambling Tax
Tax Tips for Gambling Winnings & Losses
If you win some money at the casino, don’t forget that the government thats a cut of your winnings. The below tips are very important to keep in mind before you go and spend all your jackpot.
Make sure to report all your winnings as other income on your tax return form.
Make sure to report your winnings and losses separately on your tax return.
Keep a record of how much you have won and loss throughout the year with the proof attached.
Remember that state and local taxes may apply.
COVID-19’s Impact on Tax Rates
It is not a surprise that the economy boosts up when generating money from casinos. Although the tax rates vary from one country to another, each governing party benefits greatly. With the current global pandemic, the economy of all countries has been greatly hit and therefore, countries are looking for ways of how one can maximise revenue return. Some countries had to increase their tax whereas others decided to decrease them.
This comprehensive guide includes all that you need to know about gambling taxation all around the world. Now that you know all about the taxes that casinos pay all around the world, make sure that you are aware of the taxes that you as the gambler must pay on your winnings.
With years of experience in the gambling industry, Sarah is knowledgeable in the field of the casino world. She is responsible for most of the content that is written on MrCasinova and her main goal is to provide casino players with the best information and recommendations to help users enhance their experience. Recently, Sarah graduated with a Professional Diploma in Digital Marketing.
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