Gambling tax regulations vary depending on country, and may also vary at a state level. Some countries make gambling in any form Illegal (i.e gambling online, or at a brick and mortar casino, or a home-poker game would be breaking the law).Some countries permit gambling, but there are specific rules and regulations in place, as well as licencing laws.
In terms of taxation, in some cases casinos, gaming and betting establishments are obliged to pay tax on their profits to the taxman in the country or state in which they are based – and the customer has nothing to pay on any winnings On the flip side the rule can be that the individual must declare and pay any applicable tax on their winnings. It just depends on where the gambling takes place, and whatever local or national taxation and gambling legislation laws are applicable.
How is gambling tax handled around the world?
In some cases tax is only applied to gambling income if it is your profession or main source of income. So if you gamble and you win big, but you have a more substantial primary source of income and you don’t rely on gambling to earn a living, you won’t be taxed.
Which Countries have the highest and lowest tax rates for gambling income?
Top 10 Countries With The Highest Tax Rate on Gambling
Top 10 Countries With The Highest Tax Rate on Gambling
Country
Tax Rate
Germany
up to 90%
France
up to 80%
Austria
up to 80%
Luxembourg
up to 80%
Denmark
up to 75%
Poland
50%
UK
up to 50% (Cross Gaming Yield)
Australia
up to 45%
Macau
39%
Kenya
35%
Top 10 Countries With The Lowest Tax Rate on Gambling
Top 10 Countries With The Lowest Tax Rate on Gambling
Country
Tax Rate
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%
Gamblers in countries such as Ireland and Kenya are not taxed on winnings – instead the bookmakers or casino sites that take the gamblers betting action pay a percentage of tax on the total bets or winnings they take.
For example, Irish bookmakers pay a 1% tax levy on all bets placed through their service, while in Kenya the taxation is based on the net profit of the bookmaker. It was set at a rate of 7.5% for years, but recently in 2017 Kenya upped the tax rate to 35%.
Developing countries like Cambodia often lower their tax rates on gambling to foster growth and investment in the domestic gambling industry.
Gambling Tax-Free Countries
Here’s a list of countries where gambling is totally legal but where only sportsbooks and casinos have to pay taxes – meaning you get to keep all of your winnings without giving a cent to the tax man.
Countries with no taxes on your gambling winnings
Countries with no taxes on gambling winnings
Austria
Germany
Australia
Hungary
Belgium
Italy
Bulgaria
Luxembourg
Canada
Malta
Czech Republic
Romania
Denmark
Sweden
Finland
UK
David Burke
An iGaming industry veteran with a background in Poker, David covers the latest news from the world of poker, sports, casino, and interesting gaming industry news.
