The Ultimate Guide to Gambling Tax Rates around the World

Gambling Tax

It is no brainer that gambling is a form of recreation in most countries around the world, which is also a constant source of revenue that builds up the counties economy. How does it do this? Of course, by waging taxes on the casino establishments or on winning individuals. What was once a recreational activity for many years has diverted its path in becoming a billion-dollar industry now!

Hundreds of countries around the world have legalized gambling(Must Watch), and some are on the verge of doing so. There is no standard law which governs the taxes waged on the casinos, common for all. They are handled differently not only in different countries but also differ among sates of the same country. This could be quite intimidating, especially if you’re a traveller or a professional gambler. Sometimes casino owners pay directly to the taxman or the government, and on the flip side, some countries demand a percentage of an individual’s winning in the form of tax. Other countries demand a cut only if you’re a professional or if it’s your primary source of income. Let us discuss some of the countries that impose highest to the lowest taxes in the world:

lowest taxes

Counties with the highest tax on gambling

  • Germany: The county contributes to about 20-80% of the gross gaming revenue from land-based casinos and 18% VAT from its online counterparts. Sports betting like horse racing contribute to about 5%of the states and lotteries contribute a whopping 16%.
  • UK: Because the UK falls under the umbrella of one of the most top gaming countries, it is comparatively liberal in terms of their taxes. Depending upon the GGY of the land-based casinos, it can vary anywhere from 15% to 50% and 21% from its online counterparts.
  • Macau: This city is the only hope for gambling lovers in China and around; hence they impose lumpsum taxes on gambling with 40% from land-based casinos, of which 1.6% is contributed to the Macau Foundation and 2.5% for socio-economic causes.

Countries with the lowest tax on gambling

  • Italy: The country has made some modifications to their tax percentages from 2018 by increasing it on the land-based venues. It has been elevated from 20 to 24% and its online counterparts from 18 to 20%. This growth is still reasonable, considering the industries popularity in the country.
  • Singapore: The country is still a newbie in the game of casinos, and hence most of their gambling revenue stems from the Marina Bay Sands and the Resorts World Sentosa. The owners either have to deposit $100,000 with five %GGR or 15% of the GGR for all other players.
  • Portugal: Recent upgrade in the tax system from 18% to 25% has become an intimidating topic in the country. With lottery winners owing to 20% of their winnings.

Countries with no tax on gambling winnings

gambling winnings

  • Finland: Gambling operators are demanded to pay 10% of the lottery winnings and 30% of their gross gaming revenue to the government.
  • Czech Republic: As of 2016, operators were compelled to pay 20% of their gambling revenue, but increased it to a good 35% in 2017, of which casinos pay 19% of corporate tax as well.