Every government recognizes that gambling has the potential to produce enormous revenue. So they aim to strike a balance between luring casino operators with low rates and taxing them heavily.
While most nations compel casino owners to pay taxes on their revenues, certain governments also require players to pay taxes.
Most legal gambling jurisdictions require casinos to report their gross gaming revenue (GGR). It is a proportion of the operator’s net profit (player’s wagers minus winnings). These taxes might be minimal or large, as explained below.
Top 10 Lowest Gambling Tax Countries
Russia has the world’s lowest tax rate of 0%, and casino operators are not obliged to pay any gaming income taxes. Revenue from gaming tables and gambling machines goes to the government.
As one of the top gaming destinations in Africa, the country draws several casino operators. The government wants to collect money but without discouraging new firms. Kenyan casinos must now pay a 20% turnover tax. This pricing is currently being debated and is bound to change.
Finland is another casino-friendly country, requiring just 10% of gross gaming revenue. Players’ gains are not taxed, and Finnish players retain all winnings from both online and land-based casinos.
Singapore, Argentina, Belgium, Sweden, Portugal, Spain, and Italy are all tax havens for casino operators. While tax rates fluctuate, these 10 nations presently have the lowest rates.
Top 10 Gambling Tax Havens
As seen in the 2020 graphic above, France has the highest tax rate at 83.5%. However, the taxation scheme varies across gambling sectors. 83.5 % are for land-based casinos, 52.2 % are for online sportsbooks, 40.8 % are for online poker operators, 44.5 % are for sports betting, and 37.7 %
State gaming taxes differ in the USA. In New Jersey, Nevada, and South Dakota, the tax is 6.75-8%. In certain places, like Rhode Island, it’s 51%. When a player wins above a particular amount, the IRS mandates casinos to withhold federal taxes. The proportion withheld might be 25%-30%.
The gambling taxes in Australia vary by jurisdiction, with some states charging as much as 65% on lotteries. The tax on gambling machines is 25%, while table games and horse racing are 20%.
The UK has a well-developed gaming taxation structure. Bingo, slot machines, lottery, and other casino games all have their own rules. Taxes range from 15% to 50% depending on GGR.
Denmark Land-based casinos pay a 45-75 percent tax on gross gaming revenue, while gaming machines pay a 41% tax. The Danish government raised online casino taxes from 20% to 28% in January 2021.