How are casino winnings taxed?

The issue of taxation is still a hot topic for casino players. In this aspect, gaming sites have divided into several categories. Some brands remove tax from each payment, some leave the payment of tax at the discretion of players, and in some casinos about the payment of tax is out of the question. The presence of tax on winnings depends not only on the chosen casino, but also on the country where it is registered. Let's consider this aspect in detail on the example of several countries and specific casinos.

Tax on casino winnings: the experience of European countries

In each of the countries where gambling is legalized, there is a different system of taxation and the EU countries are no exception. Only the percentage of tax and the conditions when it is pulled down differ.

For example, if you choose a casino in Georgia, the tax applies only to winnings exceeding 1000 GEL. In other cases, the money won is credited without additional taxation. The tax percentage is also average, if compared to other European countries - 5%. At the same time, the income tax for organizers of gambling games in 2024 increased from 10% to 15%.

Let's go further. If you manage to get a win in a casino in Belgium, Denmark or Estonia, Bulgaria or Latvia, the UK or Romania, the tax on winnings will be 0%. This is due to the policies of the regulatory gaming commissions. Casino winnings are not considered as potential income in these countries, and therefore no tax is due on them.

Despite the favorable tax conditions for players, the situation for casino organizers is quite different. In each of these countries there is a tax rate of 5% for GGR or gross casino profits. For clarity, let's compare the taxation conditions in different EU countries:

From the general list of European countries, a few stand out brightly. For example, Latvia. Here for gambling organizers there are more favorable conditions than for players. This is confirmed by a high tax rate in 2 variations:

• 23% on winnings above 3000 euros for the last year;
• 31% on winnings above 78,100 euros for the last year.

The role of the tax agent in Latvia is performed by the casino, so the data on the payment of tax is transmitted to the competent authorities automatically. A similar principle operates in Romania, but with a slight difference. Here, the tax rate ranges from 0% to 25% and depends on the type of gambling activity - most of the profit will have to pay the organizers of casinos, less bookmakers.

Finally, among the European countries consider three anti-leaders in the size of the tax for both players and casinos. These are such jurisdictions:

• UK. Tax on winnings for players 0%, and the casino organizers will have to pay from the profit received 21%. Impressive and high cost of the license, which must be renewed annually.
• Germany. The percentage of tax differs from one federal state to another, but there are some common provisions. For example, the tax on winnings in the casino for the player - 5%, for the organizer of gambling - 16%, for a betting office - 20%, and for a land-based casino - 80%.
• France. Income tax for casino organizers is 83.5% and 0% for players.

Despite the high tax rates for casinos, European countries have transparent playing conditions for users. A significant plus is the regulation of gambling at the state level - it gives players additional protection of both personal and payment data.

USA and Latin American countries: casino taxes

If you choose a casino with a US license to play, you will have to shell out for taxes. Here gambling is regulated at both the federal and regional level, respectively, the tax rate is pulled twice. It plays a role, and what state is assigned to the online casino, as the percentage of tax will also differ. It is easy to see this with specific examples:

• New Jersey. Tax on casino winnings 15%, on total profits for gambling organizers 24% and annually 8.5% on sports betting.
• Pennsylvania. 54% tax on slots winnings and 16% on table games and poker winnings. Sports betting enthusiasts will have to pay a 36% tax on winnings.
• Michigan. The tax rate here is also tied to the type of gambling activity and ranges from 20% to 28%. The most to pay tax will have to pay from the winnings received for sports betting.

Despite the high interest rates and the solid cost of the license, US casinos are still on the plus side. This can be explained by the high traffic and popularity of gambling among Americans. It will be equally interesting to compare the situation with taxation in Latin American countries.

Due to the scale of the region, we will not consider each country separately, but will emphasize a few market leaders. These are such countries as Argentina, Brazil, Chile and Mexico. Legalization of gambling in these countries is still being finalized legislatively, so the situation with taxation can change at any time. According to the latest data, the following taxes are in effect:

Taxation in CIS casinos

Studying the situation with taxes in different countries, we could not leave out the CIS countries. Let's consider taxation on the example of 3 giants of the market:

• Ukraine. Avoid paying taxes in Ukrainian casinos will not be able to avoid paying taxes - from the received winnings pulls a fixed rate of 19.5%. Solid taxes are also established for organizers of gambling: 18% to the main profit of the company and 10% to the gross gaming income.
• Russia. If you managed to win in the casino, from the income received will have to pay 13%. Exception - winnings in casino promotions, raffles and tournaments. They are subject to a tax rate of 35%. Casino profit tax depends on its gaming zone and can be either 3000 RUB for one slot machine or 15 000 RUB.
• Belarus. Organizers of online casinos and virtual gambling must pay 8% of the profit received every month. For players who managed to get the winnings, the tax rate is reduced to 4% and is also pulled down monthly.

Let's compare the taxation situation in the mentioned countries for clarity:

In the rest of the CIS countries, the tax rate varies. For example, if you choose online casinos in Kazakhstan, there is a tax of 10% of the received winnings - the role of the tax agent is performed by the casino or bookmaker's office. Pay tax will have to pay and the organizers of gambling in Kazakhstan - 20% of profits once a quarter.

In most countries, the tax on winnings for players does not exceed 10-15%, but the exceptions should not be forgotten. Legally, all casinos and betting shops must pay taxes on gross revenue generated or GGR monthly or quarterly. Its percentage rate for each country is different, but not less than 10%.

Taxation in casinos: pros and cons

Let's summarize a little. As it was possible to find out, the situation with taxes in the global market fluctuates. Some countries do not pull down taxes on players' winnings at all, some are not afraid to set high interest rates. You can treat it differently, but the taxation in the chosen country will not change.

Therefore, let's try to find the pros. The presence of tax in a particular online casino is a confirmation of its legal status, which means increased security and protection of personal data. It also has a positive impact on the overall reputation of the brand. Since casinos perform the role of a tax agent, you can not worry about problems with the tax services.

However, and vigilance should not be lost: choosing a casino to play, we advise you to familiarize yourself with its legal status and clarify the amount of tax on winnings in a particular jurisdiction. This will save you from unpleasant situations and the need to pay a late penalty for non-payment of tax in the casino.

Author: Tatyana Storozhenko

Site Editor

Tatyana is the author of expert articles on ReallySpins. She has been working in the gambling industry for more than 4 years. She knows the essence of online casinos from beginning to end, so the information on the site is carefully checked by many criteria. When writing reviews and analyses, the emphasis is on truthfulness and usefulness.

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