Gambling Taxes Worldwide

Casinos pay a tax on their Gross Gaming Revenue (GGR) in most countries where gambling is legal, which is one of the ways that regulated gaming benefits economies and communities.

GGR payments are typically a proportion of a casino’s net profit (minus player wagers winnings). However, each nation collects GGR payments in a different manner.

Figuring out a decent GGR or equivalent scheme is difficult for governments who want to profit handsomely from their casino ‘sin’ tax without discouraging capital inflows. This delicate balance necessitates governments in various regions to adjust their rates every few years.

In this guide, we’ll share some factual information on how countries pay their taxes, which countries are on the higher spectrum, and which countries don’t pay gambling tax.

Highest Gambling Taxes Paying Countries

Even though many believe gambling to be morally bad, it is undeniable that it generates a significant amount of tax revenue for the government. The following is a list of the nations having the highest online gaming taxes:

• France is at the top of the list in 2022 since they have switched its taxation structure from gross gaming revenue to GGR. This puts casinos in a better situation than the previous arrangement since they will not be taxed on money returned to players as wins. There are various rates across the market; the land-based casinos will pay 83.5% GGR, while horse racing is fixed at 37.7%. As the sector increasingly moves online, sportsbooks are responsible for 52.2% and poker companies for 40.8% of the tax.
• Even while Denmark’s 75% GGR tax seems generous, if you read the fine language, you’ll find that it applies only if GGR is more than DKK 4 million ($612,000). If that target is not met, land-based casinos pay 45 percent instead.
• Australia’s tax is high at 65% on lottery winnings, depending on the jurisdiction. Gaming machines reduced by 25%, while racing and card games decreased by less than 20%.
• Although there are wide variances among states in the United States, the ultimate responsibility of paying is on the player, not the casino, in this country. This is easy to control at land-based casinos, but it’s more of a grey area when you play online. Rhode Island has the highest rate at 51%, while DC and Colorado have the lowest at 10%. As far as the percentages go, New Jersey and Illinois are in the teens, while Pennsylvania has a projected 34 percent.
• Casinos in the United Kingdom pay a predetermined proportion of their gross income under a multi-tiered tax scheme. Starting at 15%, this rises to 20%, 30%, 40%, and finally 50% on anything above £2,370,500 in value. European nations such as Portugal and the Netherlands ask for a significant amount in GGR.
• Gambling establishments in Portugal pay between 15 and 30% GGR on all income generated, including poker. The GGR in the Netherlands is 29%, plus an additional 2 percent charge.

Gambling Tax-Free Countries Worldwide

In nations where gambling is allowed, views differ on whether or not gambling winnings should be taxed. Although there are several nations where all or a portion of gambling winnings are taxed, there are also a handful of countries where gambling is tax-free.

Did you know the US is not included in the gambling tax-free state?

No, we didn’t forget about the United States while compiling the list. Players in the United States must itemize their profits and losses on their annual tax return and pay a 25% tax on winnings.

Globally, the regulations regarding gaming tax are not always black and white. If gambling is your career or primary source of income, your gains will generally be subject to taxation. However, if you have a larger source of income and do not depend on gambling professionally to pay your expenses, you will not be taxed on your winnings.

In some nations, like Kenya and Ireland, players are not taxed on their wins, but bookmakers must pay a percentage of taxes on the total wages or earnings they record. In Ireland, bookmakers must pay 1% tax on all wagers, but in Kenya, they must pay 7.5% tax on all profits.

In certain instances, there may be no tax on gambling, while in others, players are not taxed on gains, but casino operators and bookmakers are taxed. Here, we’ll list several nations where gambling is allowed and wins are not taxed to provide you with extra casino, gambling, and taxes information.

United Kingdom

Gambling has been popular in the United Kingdom since at least the eighteenth century. The Gambling Act was not enacted until 1968, which legalized gambling activities. The Act was revised in 2005 to include regional and internet casinos, expanding the sector.

In the United Kingdom, players are not obliged to pay taxes on wins at land-based or internet casinos. Casino operators in the United Kingdom are bound to pay a gambling tax ranging from 2.5% and 40% of their total gaming income.

Austria

There are 12 casinos owned by Casinos Austria, as well as dozens more all over the globe, and the corporation is a major contributor to Austrian taxes. Since its inception in 1934, the firm has dominated the Austrian gaming market.

There is no Austrian tax on winnings from online gambling. Casinos must pay taxes, whether they operate or in a brick-and-mortar establishment. The operator of any Austrian casino must pay 35 to 80 percent of all stakes (fewer wins) put at the establishment.

Australia

When Sydney’s Hyde Park had its first legal horse-racing meeting in 1810, it marked the beginning of Australian gambling. The first official Australian lottery was conducted during the Sydney Cup in 1881. It wasn’t until 1956 that the first legal poker machine was installed in licensed clubs. Gambling is a popular activity in the United States nowadays.

Any earnings won at an internet casino, or a brick and mortar establishment are exempt from Australian gambling taxes. Casinos are required to pay licensing fees and gaming taxes. There are a variety of tax rules in place around the country. Depending on the state, gambling taxes may be based on turnover, net profit or loss to the player, or a combination of both.

Bulgaria

Bulgaria legalized gambling in 1993, but it wasn’t until 1998 that the government began awarding licenses and implementing a revenue system. It was only in 2012 that the rules governing online gambling were finalized after it was declared lawful in 2008. In 2013, a new tax on online casino operators’ revenue was enacted in Bulgaria, making it legal for the industry to operate in the country.

In Bulgaria, online gambling profits are tax-free, exactly as in land-based casinos. The government levies a set tax on other forms of gambling, such as poker and roulette. Taxes are taken care of by casino operators by paying 17,500 for each license and venue they operate.

Canada

Since 1497, Canadians have been partaking in gambling. Bingo and raffles were legalized in 1900, horse racing in 1910, and fair and exhibition gambling in 1925. Lotteries were legalized in the United States in 1969 when a statute prohibiting gambling was changed. Online gambling has been permitted in Canada since the early 2000s, and there are now casinos in almost every province.

There is no tax on profits from gambling in Canada, whether you play online or at a land-based casino. ‘

Denmark

Although there aren’t many casinos in Denmark, individuals have already been gambling since the early 1800s. In today’s market, there are six land-based casinos in Denmark and one online casino regulated by the Danish Gambling Authority (DGA).

Denmark does not charge taxes on earnings from online gambling. There are no taxes on gains from gambling, whether in a brick-and-mortar casino or an internet casino. Taxes ranging from 45 to 75 percent of total gaming income are the responsibility of the country’s casino operators.

Casino Marienlyst in Helsingor is the country’s oldest (and one of its most exquisite) casinos. Aalborg, Aarhus, Copenhagen, Odense, and Vejle all have their own local casinos.

Germany

Until 1933, gambling in the United States was illegal. The first casino in Germany opened in Baden in 1765. The government issued a law in 1872 which mandated the closure of all casinos in the United States. Presently, there are 70+ land-based casinos, some of which are controlled by the government and others by private companies.

In Germany, winnings from gambling are not subject to taxation, regardless of where you play: online or in a brick-and-mortar casino. State-owned casino operators are taxed 80 percent of their gross gaming earnings, but private casino operators are taxed on a different percentage of their gross gaming revenues.

Almost every major city has at least one casino or casino resort. Hamburg Casino Esplanade and Berlin Casino are two of the most popular casinos in the city. Baden-Baden, one of the world’s top 10 casinos and the oldest casino in Germany, is located in Germany.

Italy

Gambling has been practiced in Italy for a very long time. They initially began playing dice with their Emperors in ancient Rome when it was originally introduced as a form of gambling. The country’s first authorized casino was established in Venice in 1638. It wasn’t until 2006, when internet casinos were established in Italy that gambling was officially controlled.

Italy does not take tax on winnings from both land-based and internet casinos. Gambling houses must pay a 1% tax on their gross gaming income.

The Casinò di Venezia in Venice, Italy, is the world’s oldest casino and is still open to the public. Few casinos exist in Italy, although you may find them at Saint-Vincent, Venice, Sanremo, and Campione d’Italia, all in the Veneto region.

Malta

The first Lotto Act in Malta was passed in 1922; however, gambling has existed in Malta and the surrounding area since prehistoric times. The Lotteries and Gaming Authority, which gives online and land-based casino licenses, now regulate gaming. In 2000, Malta became the first EU member state to legislate internet gambling. More than 80 licensed internet casinos are currently operating in the United States.

Casino operators must pay a license fee of 46,000 euros and a percentage of their gross turnover of 15-40 percent, although players are not taxed on their gains from online or land-based casinos.

Malta’s top casino resorts include Olympic Casinos Casino Malta, Portomaso Casino’s Oracle Casino, and others. In addition to sports and entertainment, each is situated on the waterfront.

Romania

The Soviet Union banned all types of gambling in Romania in 1945. The nation did not regain its gaming culture until 1989 when a democratically elected government gained power. It was legalized again in 1990, and the first casino reopened its doors for business in 1991. It was legalized in 2010, assuming government licenses were necessary to run online casinos. Online gambling in Romania is regulated by the National Gambling Office, established in 2013.

In Romania, gambling is exempt from all forms of taxation. Gaming and earnings from gambling are not taxed by either players or casino owners.