Any legal business pays taxes. In the case of gambling, these taxes are often much higher. In addition, the specifics of taxation can vary greatly from country to country. Not only interest rates are changing, but also the taxation schemes themselves.
The governments of many countries have long found out that the legalization of gambling is much more profitable than a complete ban on gambling. Casinos, bookmakers, slot machines can bring a good income to the country’s budget. Moreover, we are talking about both stationary institutions and the online component.
What is the situation with taxes on online gambling in different countries?
Online betting and some types of lotteries are allowed in the country. The tax is levied on every processing center that accepts rates. The amount of tax, depending on various conditions, ranges from 2.5 to 3 million rubles. Each installed slot machine is also taxed in the amount of 3 to 15 thousand rubles.
Also, bookmakers independently withhold taxes on winnings from players. 13% for residents and 30% for non-residents are withheld from each winnings over 15 thousand rubles.
At first glance, this is one of the simplest tax systems. Business pays 15% on bets and players are completely tax exempt on winnings.
But besides the usual tax, there is also a tax on remote gambling. It is paid if the company offers bets to British players outside the country. The size of this tax is already 21%.
The tax on bookmakers and online casinos is 20% of gross gambling income (calculated as bets minus winnings). This is a very humane environment, since land-based (offline) establishments pay up to 75% of gross gambling income.
The activities of gambling operators in Poland are regulated by the Gambling Games Act. It permits most forms of entertainment, including poker, sports betting, and slot machines. For land-based establishments and online casinos, there is a flat rate of 12% of revenue. Every year, due to this tax, tens of millions of euros come to the country’s treasury. At the same time, there is potential for growth, since Polish players have access to a large number of illegal online casinos and are happy to use this opportunity.
Each state has its own laws regarding gambling. Online casinos are banned almost everywhere. Bookmaking is legal in West Virginia, Connecticut, New Jersey, New York, Mississippi and Pennsylvania. Tax rates also vary from state to state. The highest tax is in Pennsylvania, at 55%.
Players pay between 30% and 35% tax on each winnings. Plus state tax rate (up to 10.8%) and city tax. With large winnings, US citizens often have to pay up to half of the total amount.
Australia is one of the three most gambling countries in the world. According to some reports, every adult on the continent spends about $ 1300 a year on bets and casinos. For the local economy, gambling is a good source of income. For some states, their size reaches 10% of the budget.
Only local licensed operators are allowed to gamble online. The scheme is the same as in the UK: tax on gross income of 15% and no tax on player winnings.
Online gambling is completely legal. Foreign companies need to obtain a gambling license from a local regulator to conduct business in the country. Subsequently, they pay a tax of 30% on gross income and 12% tax on player winnings.
None of the countries in the world have yet created an ideal model for taxing gambling business. For many areas, stimulating entrepreneurship is one of the priority tasks of most states. But in the case of gambling, a balance must be struck. Too harsh conditions lead to business going into the shadows. Too soft – they threaten with problems in society associated with the growing popularity and excessive availability of gambling.
One thing is for sure for now: online gambling is not going anywhere and the governments of many countries cannot ignore this phenomenon. It is in their interests to create such conditions so that people can legally play in reliable companies, business can earn money, and the country’s budget receives additional income.