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States with Zero Gambling Tax on Winnings (Part 1)

6 August 2019, 08:08
Votes: 1

Opinions concerning gambling taxation differ from one country to another. Many factors should be taken into account: whether gambling is your professional activity or your main source of revenue, etc. However, there are countries where gambling winnings are not taxable at all. Now let us consider in detail the first half from the list of such states.

States with Zero Gambling Tax on Winnings (Part 1)

Bulgaria

Bulgaria legalized gambling activity back in 1993. Nevertheless, the first licenses were issued only five years later. The same can be applied to the taxation system. 2008 saw online gambling legalization in Bulgaria. Official gambling websites were introduced only after setting a detailed regulatory system, in 2013. Starting from that point online casino operators have been required to pay a tax on their turnover.

However, a lucky winner irrespective of the type of gambling establishment (online or land-based) will not have to give anything to the local budget.

Casino operators are to pay not only for licenses and locations for their gambling operation but for roulette and table games as well.

Most gambling establishments can be found in Sofia, Svilengrad, and Varna Resort. These include twenty casinos, thirty bingo halls, and eight hundred gaming salons.

Czech Republic

Games and sports wagering were for the first time offered in the Czech Republic in 1956. The pioneer company was called Sazka S.A. Its first rival appeared only 35 years later. Casino boom in the Czech Republic started in the 1990s and resulted in the current operation of two hundred land-based properties as well as online gambling legalization.

A positive point for players here is that their winnings are not taxable. Instead, gambling operators will have to give 6-20% of the profit to the state treasury.

Majority of Czech gambling establishments are located in Prague. The total number of land-based casino properties in the country is 180, including Casino Ambassador, King’s Casino, and many others.

Hungary

Hungary

The history of casinos in Hungary is much longer than that of the previous two countries. However, the first Gambling Act was introduced in 1991. Currently, the monopoly operator in Hungary is Szerencsejatek Zrt whose license is valid until 2020. Legalization of online poker took place in 2009.

Hungary is the third country in our list of states that do not impose taxes on gambling winnings, both land-based and online. However, with casino operators things are completely different. They are obliged to pay a thirty percent tax on their GGR.

Budapest is the place where four main gambling establishments of the country are located, namely, Kincsem Park, Las Vegas Casino, Orfeum Casino, and Tropicana Casino.

Romania

Casino games were one of the most widespread types of leisure activities here at the very beginning of the XX century. However, from 1945 to 1989 gambling activity was banned due to the fact that in this period the country was controlled by the USSR.

The first legal gambling establishment was opened in 1991, and online gambling legalization took place in 2010. Romanian regulator, the National Gambling Office, started operating from 2013.

Despite the fact that online casinos need to receive a license for operation, players do not have to pay anything to the government in case of winning.

Romanian most famous IRs are in Bucharest: JW Marriott Bucharest Grand Hotel, Platinum Casino, Casino Palace, etc.

Austria

Austria

Number one taxpayer in the country is Casino Austria. The company, which was founded in 1934, is the current monopolist in the local gambling industry and operates twelve casinos in the country. Besides, it runs dozens of gambling establishments all over the world.

These are not players, but operators who are responsible for paying taxes in Austria. This law covers both land-based and online operation. Austrian operators are obliged to pay 35-80% of all stakes (excluding winnings) that have been placed at their properties.

There are many cities in Austria for gambling lovers: Vienna, Salzburg, Innsbruck, etc. The largest gambling facility is Casino Baden, located in Linz.

Germany

The history of German casinos dates back to 1765 when the first gambling establishment in the country was opened. A bit more than a century later, in 1872, authorities forced all gambling facilities in Germany to stop their operation.

The official gambling legalization took place much later, in 1933. Currently, there are approximately two dozens of private gambling companies and over seventy land-based casino properties owned by either private or state entities.

Players do not have to worry about taxes on their winnings since there are none. Nevertheless, gambling operators (running state-owned gambling facilities) will have to pay 80 percent of their GGR. With private properties thing are a bit different: each of them has a separate taxation rule to follow.

The oldest casino in Germany is Baden-Baden. This gambling establishment is also one of the world best casinos. Almost every German city has a gambling facilit

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