How much tax casinos pay - The highest and lowest taxes around the world

Different countries have varying tax regulations and every government understands that gambling has the potential to generate huge income. Thus, they try to find a balance between attracting casino operators with reasonable rates and obtaining substantial taxes from them. While in most cases it is the casino operators that are required to pay taxes on their profits, some countries require players to also pay tax on their winning.

In countries where gambling is legal, casinos are required to pay a tax on their Gross Gaming Revenue (GGR). The GGR payment system is different in every country but it is generally a percentage of the net profit( player's wagers minus wins) obtained by the operator. These taxes could be low or high as outlined in the section below.

Top 10 Countries with the Lowest Gambling Taxes


Russia
At 0%, Russia has the lowest tax rates in the world and casino operators are not required to pay any taxes in gaming revenue. The government obtains revenue from the flat fee placed on gaming tables and gambling machines.

Kenya
As one of the top countries in Africa where gambling has flourished, the country attracts numerous casino operators. The government is keen to obtain revenues while at the same time provide rates that will not discourage new businesses.  Currently, the government requires casinos in Kenya to pay a 20% turnover tax. There are still on-going debates about this rate and it is bound to change.

Finland
Finland is another county favorable to casino operators since they are only required to pay 10% of the GGR. Players' winnings are not taxed and the Finnish get to keep all the winnings obtained from gambling activities both in online and at land-based casinos.
Singapore, Argentina, Belgium, Sweden, Portugal, Spain, and Italy are all havens to casino operators with their reasonably low tax rates. Although the tax rates keep on changing, these 10 countries currently have the lowest tax rates.

Top 10 Countries with the Highest Gambling Tax Rates


France
As outlined in the chart of 2020 above, France tops the list with taxes going up to 83.5%. However, from their taxing system, different gaming sections have varying taxes. The 83.5% is for land-based casinos, 52.2% for online sportsbooks, 40.8% for online poker operators, 44.5% for sports betting, and 37.7% for horse racing.
 
USA
The gambling taxes in the USA vary by state. In New Jersey, Nevada, and South Dakota, the tax ranges from 6.75%-8%. However, in other states such as Rhode Island, this goes up to 51%. In some instances, the Internal Revenue Service (IRS) requires casinos to withhold federal taxes when a player has won over a certain amount. The percentage withheld could range from 25%-30%.

Australia
The gambling taxes in Australia also varies in each state with some imposing taxes as high as 65% in lottery. The tax is significantly lower for gaming machines which is at 25% and 20% for table games and horse racing.

The United Kingdom
The UK has a well-developed taxing system that covers all types of gambling activities.  There are separate regulations for games such as bingo, slot machines, lottery, and other casino games. Here, the taxes vary between 15%-50% depending on GGR.

Denmark
Danish land-based casinos are subject to a 45%-75% tax of GGR while gaming machines are taxed at 41%.  As of January 2021, the Danish government increased online casino taxes from 20% to 28%.