Gambling taxes are one of the main issues for any online casino operator. In many respects, this determines both jurisdiction and operating markets. In relation to the gambling business, as a rule, the laws of different countries determine individual tax rates. They are often significantly higher than for other areas of commercial activity.
WHERE GAMING TAXES GO
For many governments, it has long been obvious that online gambling by direct prohibitions and blocking methods cannot be completely eradicated. But if you legalize gambling, it becomes a gold mine, which can significantly replenish the budget. Therefore, in most developed countries in recent years there has been a tax regulation of online gambling.
In addition to operators, in many states players are also obliged to pay casino winnings tax. Gambling budget revenues are usually spent on the social sphere, tourism development or national projects. Consider what tax rates are currently in effect in a number of countries for both business and players.
Gambling operators have a fixed tax rate of 15% of gross income. Players are fully exempt from winnings tax.
In America, each state makes its own laws regarding gambling. Casino taxation is more applicable to land based gambling establishments. Online casinos are prohibited in most US states. However, online sports betting is legalized in the following states: West Virginia, Connecticut, New Jersey, New York, Mississippi and Pennsylvania.
Taxes for operators are also determined by the laws of each state separately. One of the highest rates applied in Pennsylvania is 55%. US resident players pay a winnings tax of 30%.
The issue of online gambling in South Africa has not yet been resolved. Online gambling in this country is still illegal. This applies both to the organization of games over the Internet, and directly participating in them. Excludes sports and horse racing bets.
The standard corporate income tax in Africa is approximately 29%. Winning tax payable by players is 15%.
In August 2017, the Australian Senate approved a nationwide ban on online gambling. He touched all online casinos, poker rooms and bookmakers. An exception is only for local licensed operators. From 2019, a new 15% tax on gross income will be valid for them. There is no tax on winnings.
Online casinos in these countries are legalized. To conduct business, the operator must obtain a gambling license from a local regulator.
Mexican licensed operators must pay a 30 percent tax to the budget. There is also a 12 percent tax on winnings paid by the operator and a 6 percent tax paid by the player.
The income tax rate for gambling in Argentina is 41.5%. If the winnings exceed 1,200 Argentine pesos (approximately 48 euros), the player must pay him a tax of 31%.
Usually sanctions for players include fines. For example, in Russia for untimely payment of tax, they make up 5–20% of the overdue amount and even criminal liability.
If illegal activity is discovered, the tax authorities will first of all require the violator to fill out a declaration and impose a fine of 5% of the unpaid amount for each month of delay. And if the amount of unpaid taxes exceeds 900 thousand rubles. - you can go to jail.
In the US, tax evasion is generally considered one of the worst crimes. The established system of fines provides for the recovery from the offender of $ 100 thousand or imprisonment for up to five years.
For the operator, tax evasion can have critical consequences. Starting with large fines that can put the company on the brink of bankruptcy, and ending with the suspension of operations, the revocation of a gambling license and the criminal prosecution of the CEO and chief accountant.