Gambling Tax Around The World
The ICSS, in partnership with Sarbonne University, looked at data on tax havens, legal and illegal gambling, online betting and match fixing. The international sports-betting market is worth an.
- Gambling Tax Around The World 2020
- Gambling Tax Around The World 2019
- Gambling Tax Around The World Per
- Gambling Tax Around The World Chart
- By 1942, enough money was raised to rebuild Johnstown, yet the tax exists to this day, and brings in around $200 million a year for Pennsylvania. New York City places a special tax on prepared foods, so sliced bagels are taxed once as food and again as prepared food, thus creating a sliced bagel tax.
- In any event, at present the Swedish government charges a massive 30% of tax on gambling winnings from casinos and sites outside the US. Some tournament can see as much as 50% tax on them, which makes it similar to the Norwegian model (i.e. Not the best place to be gambling and paying tax).
- In 2017, Kenya raised its gambling taxes on casinos, gambling firms, and lotteries to 35 percent tax representing a huge leap from the previous held rate of 12 percent. On the plus side, the figure was still not as steep as the once-rumored 50 percent rate that was being considered.
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:
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
- Finland: Gambling operators are demanded to pay 10% of the lottery winnings and 30% of their gross gaming revenue to the government.
- CzechRepublic: 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.
Gambling Tax Around The World 2020
In numerous countries around the world, gamblers are taxed on their winnings, which may seem a little unfair considering the monetary risks that they undertake when gambling. While in most cases these taxes represent just a small amount of their winnings, spare a thought for casinos which end up paying huge rates of tax on their Gross Gaming Revenue (GGR).
Each country collects its own GGR payments in a different way, but most commonly it is calculated as a percentage of the net profit that is made by the casino. This is one way that local communities, as well as a country’s economy as a whole, can get the most out of their regulated gambling, and in 2006, for instance, the USA collected a massive $90 billion in Gross Gaming Revenue.
What GGR Rate Makes Sense?
Finding what GGR level makes sense can be hard for governments, who clearly would like to derive the most monetary benefit from their regulated industries, but not in such a way that it might discourage new business from opening up in the country. In other words, there is a delicate balance that governments across the world need to strike in order not to sabotage their own self interest as far as gambling taxes are concerned.
Different Approaches
Gambling Tax Around The World 2019
– Kenya
In 2017, Kenya raised its gambling taxes on casinos, gambling firms, and lotteries to 35 percent tax representing a huge leap from the previous held rate of 12 percent. On the plus side, the figure was still not as steep as the once-rumored 50 percent rate that was being considered. In the meantime, the government defended its decision by stating that it wanted to use some of the money to help young people in Kenya to pursue career choices that did not involve gambling.
– Cambodia
By contrast, Cambodia has encouraged new businesses to invest in the country’s gambling industry by lowering the tax rate to one of the most competitive on the planet. This has meant reducing it to below that of even Singapore, which boasts a 10 percent rate, and moreover, Cambodia’s decision seems to have already born fruit and had a positive impact on its financial numbers. From 2015 to 2016 period, for instance, the budding gambling country witnessed a 38 percent increase in the revenue it generated from gambling, with growth expected to continue at an equally impressive rate.
Though the two tax rates mentioned may seem extreme, they are by no means the highest or lowest examples within the industry.
Gambling Tax Around The World Per
Highest Gambling Tax Rates
Here’s a look at the top 10 countries charging the highest gambling tax rates, with the figures mentioned being the upper case amounts possible:
Gambling Tax Around The World Chart
Germany (90%)
France (80%)
Austria (80%)
Luxembourg (80%)
Denmark (75%)
Poland (50%)
UK (50%)
Australia (45%)
Macau (39%)
Kenya (35%)
Lowest Gambling Tax Rates
Russia (0%)
Italy (0%)
Cambodia (2%)
Belgium (2.5%)
Czechia (6%)
US (6.75-8%)
South Africa (9.6%)
Finland (12%)
Singapore (5-15%)
Portugal (15%)
Argentina (16%)
The Right Balance
Finding just the right tax rate to encourage a beneficial arrangement between the government and the gambling businesses that operate within the country might seem like a challenging task, but as can be seen from the above figures, there are many ways to approach the situation.
New Jersey versus Surrounding States
One of the biggest contrasts between different gambling taxes levied in the US is provided by New Jersey and its neighboring states. Casinos located in Atlantic City pay a tax of just 8 percent on their GGR, plus a further 1.25 percent which goes towards community investment funding projects. In comparison, Pennsylvania slot machine are taxed at a rate of 55 percent, and its table games at 16 percent; Maryland’s table games are taxed at 20 percent tax, and its video lottery terminals at between 50-61 percent; while in New York casino tax rates fall into the 31 to 41 percent range.
As a result, New Jersey’s 7 casinos paid $237 million in casino gambling taxes last year. Meanwhile, Pennsylvania’s 12 casinos forked out $1.379 billion in taxes, New York’s 9 casinos spent around $888 million, and Maryland’s 5 gambling venues were charged $452.9 million in taxes. Commenting on the approach taken by New Jersey, Spectrum Gaming Group analyst Michael Pollock, explained: “I think it’s right with a single-digit tax rate. It’s an enormous competitive advantage to the state to both existing and potential properties.”
Nevertheless, the incredibly low tax rate in New Jersey has still attracted criticism from certain quarters, with Assemblyman Chris Brown (R-Atlantic) suggesting that taxes should be raised in order to ensure “an additional, unfair tax burden” is not placed upon working families in the state.