Gambling activities have been legalized in many countries across the world. This promises a safe and secure environment for gamblers. But it also imposes certain obligations on them. Paying taxes on the winnings is probably the most significant one.
Does sharing some of your hard-earned profits with the government feel unfair? To be fair enough, online casinos are also responsible for paying a tax on their Gross Gaming Revenue (GGR). This is basically how economies and communities benefit from well-organized gambling. Let’s be more specific at this point.
Charges in the Gambling Industry
Every country collects GGR payments in accordance with its national legislation. It’s usually a percentage of the net profit (vet value minus wins) generated by the casino. Finding a proper GGR or similar mechanism seems to be challenging for governments, who obviously want to profit from their casino taxation https://onlinecasinoaussie.com/minimum-deposit-casinos/ . They often end up discouraging new businesses to grow.
The delicate balance may look different for governments in different parts of the world. How about checking out the countries with the highest tax rates on gambling activities? Whether you are a gamer, bettor, or casino owner, you may use this information to know where to go and where not to go.
Top Countries with the Highest Gambling Taxes
Many gambling is considered to be morally wrong. No doubt it can bring a lot of money into a country through taxes. Here’s a check of the most heavily taxed countries with properly organized gaming markets:
- France has just made amendments to their taxing system from general gaming turnover to GGR. This leaves gambling platforms in a better position than the previous system as they don’t have to pay tax on money that’s earned by players as winnings. While land-based casinos have to cover an 83.5% GGR whilst horse racing is estimated at 37.7%. With an online transformation of the gambling industry, sportsbooks are about to cover 52.2% and poker operators 40.8% in taxes.
- Denmark aims to take the maximum out of the gambling sectors. The idea of 75% GGR looks overwhelming at first glance. But it is actually applied to the GGR surpassing DKK 4 million ($612,000). If the upper limit is not reached, land-based casinos have to pay 45%, which isn’t little either.
- Australia has its tax rate varying from one state to another. The highest indicator is about to reach 65% on the national lottery. It drops considerably for slot gaming machines at 25% and keeps declining to less than 20% for racing and table games.
- The United States is massive across the different states. Nevertheless, it declines on the player’s side, not the casino facility or platform. For example, it’s easier to manage land-based casinos. The online resources remain in the so-called grey area. With that being said, Rhode Island is reportedly having the highest tax rate of 51%. Colorado imposes only 10%, New Jersey and Illinois around 15%, and Pennsylvania 34%. Fortunately, gamblers and casino owners have the freedom to choose where to conduct their gambling activities. No one wants to pay more than they can cover.
- The United Kingdom has an old-fashioned tax system where casinos are exposed to a fixed percentage based on their profits. They started with 15% charged on everything up to £2,370,500. They eventually raised the stake to 20%, 30%, 40%, and 50%, which seem to be unworthy of being paid off.
Some European countries like Portugal and the Netherlands decide to ask for 15-30% and 29% in CGR. This happens to be a great amount of money to lie on the shoulders of everyone involved in the gambling industry.
Sum Up
With the large amounts of money generated by online casinos, it’s no surprise that each country’s economy tries to grab that delicious piece of the pie. The tax rates vary greatly from one country to another and are admired by each governing party.
While national authorities try to maximize revenue return, gambling platforms also try to put themselves into a more convenient environment. So what should they do? Where should they settle down? What tax rates sound reasonable? How much is going to be charged from gamblers and bettors? Make sure to check this information before stepping into the gambling world.