Gambling as an entertainment sphere should be legalized in every country in order to function properly. It shows that casino games are not something easy as pie in terms of the regulations and rules imposed by governments. According to basic economic theory, casino developers and providers should pay taxes to provide their services to avid players. All of them use a variety of technologies and therefore have a large number of counterparties, which is why their tax liabilities will vary. So the type on which no account casino pays taxes will differ from classic online casinos with payments through a MasterCard, not to mention crypto casinos. So, if you are interested in this topic, it is necessary to know how online casinos work from the inside. This knowledge will help you understand better how everything is arranged and find out what casino taxation obligations imply.
What Does a Casino Pay?
Actually, the concept of regulations and laws concerning casino taxation differs in every country. In general, the amount of money each casino pays to state coffers depends on the Gross Gaming Revenue (GGR). This way, gambling which is regarded as an additional source of revenue for governments, benefits the country from an economic perspective.
It does not matter whether you play poker, slots, baccarat, or roulette, because, in any case, your winnings are fully taxable. There are two main types of tax base: Gross Gaming Revenue and solely players’ winnings.
Gambling operators, after obtaining a license, are obliged to submit a report on the amount of taxes collected. It is also worth noting that if a player tries to withdraw funds to a bank account other than his own, his account will be blocked by the security system.
In addition, gambling has clear and fairly strict rules. In particular, only people that reached the age of 18, and in some countries, 21 years old, can get full access to gambling. All players must go through identity verification in order to use the services of the gambling business. Relatives can restrict the player if they find their closest one has an addiction.
Countries With the Highest Taxes on Gambling Business
Although gambling has been a favorite pastime activity back in ancient times, nowadays, it is heavily denounced due to its negative impact on people’s psychological health. Nevertheless, this fact did not stop many developed countries from making gambling legal. The main advantages of casino legalization are economic boost, new jobs, and revenue growth. These factors become decisive when it comes to casino legalization. So let’s see how different countries put taxes on this industry.
- France. If the player’s gambling winnings are more than €1,500, the gambling taxes are about 13%. Also, the tax rate for land-based casinos is 83.5%.
- Germany. Land-based casinos here are charged up to 20-80% of GGR. Also, according to state legislation, the tax on slot machine operators varies from 12 to 20% of GGR.
- Luxembourg. In this country, the owners of land-based casinos should pay the country 10 to 80% of GGR.
- Denmark. The Danish government charges land-based casinos 45-75% of GGR, while online casinos should pay over 20%.
It is also important to point out that legalized gambling providers that should obtain obligatory licenses are in charge of paying these taxes. So, the players don’t have to pay anything because they get already taxed money.
The tax collection system depends on the number of licensed services and land-based gambling establishments. Obviously, it is better to play casino games where the taxes are lowest. For example, the tax rates in Belgium are only 11% of GGR.
Conclusion
The gambling business is legalized in many developed countries of the world – the USA, Great Britain, Germany, Spain, Belgium, and others. Casino taxation is primarily aimed at filling the state budget. If we talk about the benefits for the player, then this is, without a doubt, a security system that will not allow fraudsters to withdraw your funds without your knowledge.