When dealing with tax rules in regards to gambling and its derivatives, regulations do differ from one territory to another. On the one hand, there are multiple countries where betting and playing at casinos is totally forbidden. On the other hand, those nations that are permitted to spin reels at gambling venues have their own sets of regulations. And brick-and-mortar casinos have to pay out profit taxes to local governments from time to time. It could occur that a punter themselves should extract a tax fee from winnings. At some casinos, fees could pile up significantly, whilst one could play at a venue with quite low taxes. It is no surprise such venues are a paradise for both newcomers and avid punters.
Gross Gaming Revenue
In a lot of countries where gambling is on players aren’t forced to spend huge chunks of money on taxes. Maybe it is a little bit dishonest, but governments need to fill their pockets with such sinful money. More than that, the casino industry is an opulent sphere of life. So, once you are a resident of a territory that enables gambling activities, you should be aware that land-based casinos pay a special fee called Gross Gaming Revenue, or GGR. This is a fee authoritative bodies take advantage of.
It is obvious each country charges fees in their own way, but basically, it serves as a certain percentage of all punters’ bets minus their winnings. In other words, governments collect a fee taken from the net income. Of course, the more famous brick-and-mortar casino is and the more players it allures, the more taxes regulatory bodies wish to accumulate. Therefore, these GGR rates are always tricky to crunch. Loyal governments aren’t that stringent on the gambling issue and they don’t discourage casino businesses. Nevertheless, they change their gross rates once every several years.
Tax Fees Geographically
Whilst gambling regulations vary from one country to another, in the majority of cases governments are going to charge people once they establish a land-based gambling venue. It also implies that since you have another job making a living and betting money on slots and other projects isn’t your sole way of earning cash, no taxes would take place for you.
Here are some meaningful examples of countries where gambling is allowed and officially taxed:
- Ireland. In this territory, once you are an ordinary player, there is no obligation for such gamblers to pay out taxes on winnings. On the contrary, it is operators themselves that have to provide governments with taxes. Bookies in Ireland pay exactly 1% from all bets placed
- Austria. You can call the casino market in the country literally monopolistic due to the fact there is the Casinos Austria business company serving as an owner of nearly all land-based gambling venues throughout the region. Here, you don’t have to pay taxes either. Casinos pay out fees by themselves. Tax rates vary from 35% to 80%
- Australia. This is a country with a broad history of gambling. Aussies first started wagering on horse races from the beginning of the 19th century. A century later, the inception of slot machines was launched. Again, fees don’t apply to players that wager real cash at online casinos and land-based venues. Away from basic fees themselves, brick-and-mortar operators should pay out license fees to local authorities. The situation differs from state to state nonetheless. For example, there are regions where regulatory bodies charge fees on turnover, whilst others take advantage of net profits.
Tax Rates Scenario in Europe
The gambling market has evolved into one of the most prosperous industries across the globe, and the European casino domain leads the way here. Frankly speaking, the region has always been a relaxed territory for gambling activities, where plenty of residents really enjoy spending money on card table games and slots. Major capitals feature enough brick-and-mortar gambling venues to play at. Unfortunately for land-based casinos, the prevalence of online casino platforms overshadows their counterparts. It is pretty simple to enter an online casino website and relish playing a comprehensive array of video slots, blackjack, baccarat and other exhilarating projects. With modern technological advancements in graphics and sound, Internet gambling venues serve as a dominant alternative for land-based casinos.
The principal reason for European countries being so popular among punters is that their governments charge tax fees from operators rather than players. It is tax-free to play at European gambling venues. Thus, it encourages more gamblers because they know every penny earned wouldn’t be taxed. Those fees paid by casino operators go into resolving public spheres like education and healthcare. For example, Greece has one of the largest tax fees on online casinos that would like to establish there – no less than 35%. Additionally, regulatory bodies require a special gambling license to offer services to Greek residents. That is why the gambling market in the country isn’t well-developed.
Casino Taxation in the UK
On the contrary, the United Kingdom is a country with relaxed tax fees in the whole of Europe. Their government requires a 21% fee, and it doesn’t matter whether a casino is located within the borders of British territory or based offshore. In addition, each casino operator must have a license to be able to provide gambling services to UK customers. It is feasible to acquire a dedicated license once they meet all requirements and commit to responsible gambling principles. Thus, the country has seen a tremendous increase in the number of both offshore and local operators proposing a broad range of such online casino games as progressive jackpot slots, baccarat, blackjack, video poker, live dealer and specialty projects.
Casino Tax Regulations in Particular Countries
Below, you will observe a list of several territories with various gambling regulations taking place.
- Canada. Gambling has been evolving in the country since the start of the 15th century. Regretfully, local authorities banned all forms of gambling by 1892. 10 years from that date, betting on horse racing and playing bingo were legalised. As of today, one could explore casinos throughout the Canadian territory. Once you gamble at either online or brick-and-mortar venues, you don’t have to pay out any sort of taxes
- Denmark. Punters might not know about Danish casinos at all. To be precise, there are just 6 gambling venues in the country, and all these casinos are governed by the Danish Gambling Authority. Although players aren’t charged, operators are forced to pay a sum ranging from 45 to 75% of GGR
- Kenya. As in Ireland, players don’t pay taxes on casino winnings. Nevertheless, 4 years ago the Kenyan government upped the percentage charged from operators to prevent young people from pursuing a casino career
- The Czech Republic. Maybe you have heard of an impressive spike in the popularity of Czech casinos. Nowadays you can play consuming casino games at more than 180 venues and on several online platforms. Besides, it is legal to play at online gambling venues with authorities charging 6-20% on taxes
- Romania. History tells us all kinds of betting were forbidden following the Soviet Union control of the country. In 1989, as a result of new regulations, gambling was permitted again. Once an operator acquires a dedicated casino license from the Romanian government, they are able to register an online casino.
So, here was the complete guide to taxes imposed by governments regarding gambling. Now you know that Europe represents a tidbit for punters. And remember – you should be strongly committed to responsible playing principles.