As many gamblers are already aware, gambling is not legal in every country. However, countries where gambling is permitted by law, there are varying tax laws. While many of us know that the U.S. has strict and tax laws (along with a tax bracket) on gambling earnings, not all countries with legal gambling tax gambling earnings. Is your country one them?
Whether earnings gained through gambling should be taxed or not, is a topic that is commonly up for debate. The reason gambling earnings are tax-free in a lot of countries is largely due to the fact that gambling tax laws are not necessarily black and white, rather, there are more gray areas, making it difficult to create and enforce specific gambling tax laws.
In this article, I’ll go over some of the countries where gambling is permitted and completely legal and winnings are not taxed, and to provide players with any additional tax insights that may have an effect on them, such as how or where they gamble. While this is not a comprehensive list, some may be surprised to see some of these countries on this short list of tax-free countries.
In Austria, online winnings are completely tax-free, however, the casinos themselves are actually responsible for paying those taxes, whether they operate on the web or in physical locations. If a person gambles at a physical location, then 35-80% of stakes (after winnings) are to be paid to the Casino operator, but this does not stop players from placing bets in casinos due to the fact that there are 13 cities in Austria that have beautiful, popular Casinos.
Whether a person gambles online or in a physical casino in Australia, the winnings are not taxed. However, Casinos are not off the hook when it comes to paying taxes in Australia either, and on top of paying taxes, they must also pay license fees. The tax laws and licensing fees are different in each state, at any rate, they do not effect a player’s winnings.
Casino players in Belgium are also not required to pay any taxes on their winnings, whether they gamble online or in a casino. The tax laws for Belgium casino operators are a little different because they are only required to pay the government a yearly contribution for their license in order to continue operating.
Canadians are not required to pay any taxes on their winnings, no matter where they play and win. Casinos are only required to pay regular business taxes, which varies by province, city, earnings, operational costs, and must be licensed to operate.
Whether playing online or in a physical casino location, gambling winnings in Germany are also not taxed. However, if a Casino operator operates a state-owned casino, they are taxed 80% of their gross revenues. However, tax rules do apply to privately owned and operated German casino operators, but they do vary, whether they operate online games like Deutches Online Casino or in a land-based location.