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GAMBLING TAXES AND CHARGES IMPOSED BY EU MEMBER STATES

European Union

General

  • Lotteries
  • Casino Gaming
  • Machine Gambling Outside Casinos
  • Betting
  • Bingo
  • Media Gambling Services
  • Sales Promotional Gambling
  • Charity Gambling

AUSTRIA

  • 2-27,5% federal licence levy according to type of game, based on stakes, but for electronical games based on stakes minus winnings;
    Federal tax of 16% of the stakes and for electronical games based on stakes minus winnings;
  • 35-80% federal Casino levy, progressive scale, based on stakes minus winnings
  • Burgenland: Max. 25% flat rate of the gross income;
    Carinthia: Municipal tax monthly 36, 58 or 727 Euro per gambling machine depending on type of gambling machine; Provincial tax monthly 363 Euro per gambling machine operated with money or falling under the federal law on games of chance; Provincial tax for licence from 14,50 to 508,70 Euro per year and gambling machine;
    Lower Austria: Flat tax rate based on the value of the gambling machine at the moment of registration.
    Upper Austria: Flat rate from 22 to 73 Euro per gambling machine and month; Tax for a licence of 72 Euro per gambling machine;
    Salzburg: Up to 1.456 Euro per gambling machine and month;
    Styria: Depending on the type of gambling machine various rates of maximum amounts are foreseen like 20, 300 or 700 Euro per gambling machine and month; in addition to that a provincial tax of 163,50 Euro per month is levied per gambling machine operated with money ;
    Tyrol: Depending on the type of gambling machine from 3,70 to 110 Euro per month;
    Vorarlberg: Progressive rate of 6.50 (plus 8,28 Euro municipal tax) Euro per 10 square metres of gambling location and day linked to average life cost index;
    Vienna: Depending on the type of the gambling machine 109 to 1.308 Euro per machine and month;
  • Federal tax on stakes from 1,5% to 5,7% depending on type of bets and up to 25% on the winnings;
    Provincial supplements on totalisator and bookmaker betting charges (betting charge supplements): max. 90% of charges on stakes and 30% of charges on the winnings; Vienna and Lower Austria have regulations on state law level concerning such supplements:
    Vienna: 90% of the charge on bets placed and 30% of the charge on winnings;
    Lower Austria: 60% of the charge on bets placed and 20% of the charge on winnings;
    Burgenland: 5-40% of winnings plus 20% annual flat rate on total amount of winnings;
    Lower Austria: Tax for a totalisator licence a) for a specific event 8.72 Euro; b) for a specific period 43,60 Euro; c) for unlimited period of time 130,81 Euro
    Upper Austria: Tax for a licence of 72 Euro;
    Carinthia: Tax for a licence from 72,60 to 181,60 Euro;
    Salzburg: Tax for a totalisator licence a) for a specific event 89 Euro; b) on a fix place 660 Euro;
    Styria. Tax for a licence from 65,41 to 218,02 Euro;
    Tyrol: Tax for a licence from 175 to 330 Euro;
    Vorarlberg: Tax for a licence of 203,60 Euro;
    Vienna: Tax for a licence of 330,66 Euro;
  • 27,5% federal licence levy, based on stakes
  • For games of chance not falling under the Law of games of Chance a federal tax of 12% of the stakes and 12 to 25% of the winnings;
  • For games of chance not falling under the Law of games of Chance a federal tax of 12% of the stakes and 12 to 25% of the winnings;
  • See lotteries

BELGIUM

  • Games of chance are not subject to VAT (Article 44 para. 3, 13 ° CTA).
    An annual contribution shall be due for each type of license (Article 1 of the Royal Decree of 7 December 2004). Également Refer to the country report pp. 41- 42.
  • The Belgian National Lottery pays a monopoly rent, the terms are laid down in the management contract (Article 22 of the Law of 19 April 2002, MB 04.05.2002). – – Prizes awarded by the National Lottery are exempt from taxation (Article 27 of the Law of 19 April 2002).
  • Chemin de fer and Baccara fee between 4.80% and 5.30%
    Roulette without zero: between 2 fee, 75% and 3.00%
    Other casino games: tax between 11% and 44% for prices below € 865,000.
    For devices assimilated to casino games: the tax is set at a percentage of the gross income for each Allied games (section 45 CTA).
  • The operation of gaming machines are subject to a fixed annual tax of between 100 euro and 3570 euro depending on the category (A, B, C, D or E) of the instrument (Articles 76, 79 and 80 CTA).
  • Tax between 11 and 15%; exemption if the price does not exceed 6.20 or 25 euro per day per person (section 43 CTA)
    For horse-races run in Belgium: tax between 20% and 22% (for Flanders) to the pari-mutuel and between 5% and 5.5% for the bet to trading (Article 44 CTA).
  • Tax between 11 and 15% (section 43 CTA)
    Exemption if the price does not exceed 6.20 euro (Wallonia and Brussels) or 25 euro (Flanders) per day per person (section 43 CTA)
  • Tax between 11 and 15% (section 43 CTA)
    Exemption if the price does not exceed 6.20 euro (Wallonia and Brussels) or 25 euro (Flanders) per day per person (section 43 CTA)
  • Tax between 11 and 15% (section 43 CTA)
    Exemption if the price does not exceed 6.20 euro (Wallonia and Brussels) or 25 euro (Flanders) per day per person (section 43 CTA)
  • Tax between 11 and 15% (section 43 CTA)
    Exemption if the price does not exceed 6.20 euro (Wallonia and Brussels) or 25 euro (Flanders) per day per person (section 43 CTA)

CYPRUS

  • No general gambling tax is levied in Cyprus and the sectorspecific taxes that are levied can be understood individually, without the need for general comments. More details can be found however, under point I.3. of the report on Cyprus that appears above as Section 3 of Chapter 1 of this Part.
  • The only lawful commercial lottery services in Cyprus are those supplied by the Cyprus Government Lottery. These lottery services are not subjected to any formal taxation. Instead, the whole net profit of the Cyprus Government Lottery is paid into public funds.
  • Casino gaming services cannot lawfully be supplied in Cyprus and are not subjected to taxation.
  • Machine gambling services cannot lawfully be supplied in Cyprus and are not subjected to taxation.
  • Pool betting on the results of horseracing is taxed at the rate of 10% of the gross amount staked. The exclusive licensee pays another 1% municipal tax, making a total tax burden of 11% of gross stakes. The sole enterprise permitted by Cypriot law to offer betting services in respect of the outcome of football matches pays the largest part of the net revenue generated by this activity into public funds. To state this as a rate of taxation would be misleading. All other pool betting services are taxed at the rate of 25% of gross amounts staked. Taking into account the substantial license fees paid by licensed operators, the total tax burden is 26% of gross stakes.
  • Bingo services are not subject to taxation in Cyprus.
  • The only lawful media gambling services in Cyprus are those supplied by the Cyprus Broadcasting Corporation. These services are not subjected to any formal taxation.
  • Sales promotional gambling services cannot lawfully be supplied in Cyprus and are not subjected to taxation.
  • Charitable societies and sports associations are not required to pay lottery duty or other taxes on the proceeds of charitable lotteries.

CZECH REPUBLIC

  • Games of chance are exempt from the VAT liability (Art. 51 of VAT Act)
    Providers of all games are obliged to grant a portion of the profit, at the percentage ranging from 6 % up to 20 % (depends on profit amount) for social, medical, sport, environmental, cultural or other projects beneficial to the public. Base for such beneficial tax is created by the difference of all betted amounts of all operated games which are subject to accounting in the given fiscal period, and which exceeds the prizes disbursed to bettors, the administration fees, the local fees and the costs incurred by the state supervision.
  • See general information and national report
  • See general information and national report
  • See general information and national report
  • See general information and national report
  • See general information and national report
  • See general information and national report
  • See general information and national report
  • See general information and national report

DENMARK

  • Danish games of chance are not subject to VAT.
  • 16% of the total stake shall be paid as tax.
    Danske Klasselotteri pays 6% of the total stake as tax.
    The prizes from the Landbrugslottery and the Varelottery as well as prizes in cash are subject to a 15% tax on the part that exceeds EUR 26 ( DKK 200). Other prizes are charged with a 17,5% tax on the part that exceeds EUR 26 (DKK 200).)
    Dansk Tipstjeneste Group: The profit generated after payment of tax to the Danish State, the prizes and administrative expenses, depreciations, provisions etc. and dividend goes to charitable causes and no-profit purposes.
  • The tax for casino :
    – if the Gross Gaming Revenue is EUR 536,655.98 (DKK 4 milion) or below the tax rate is 45%
    – if the Gross Gaming Revenue is above EUR 536,655.98 (DKK 4 milion) the tax is EUR 241,495.19 (DKK 1,800,000:45% of 4 milion) and 75% of the rest.
  • There is a fixed tax of EUR 100 ( DKK 750) per machine per year.
    For gaming machines containing prizemoney there is a 40% tax on the gross gaming revenues.
    Restaurants with gaming machines also have to pay an extra 30% tax on the gross gaming revenues that exceed EUR 4,021.93 (DKK 30,000).
    Gaming halls have to pay an extra 30% tax on the gross gaming revenues that exceed EUR 33,522.99 (DKK 250,000).
    This limit is increased by EUR 402.265 (DKK 3,000) per machine if the total number of machines is below 50 machines.105 If the total number of machines is 50 or above, the limit is increased by EUR 402.265 (DKK 3,000) per machine for the first 49 machines and by 201.117 (DKK 1,500) per machine for the rest.
    Dansk Tipstjeneste Group: The profit generated after payment of tax to the Danish State, the prizes and administrative expenses, depreciations, provisions etc. and dividend goes to charitable causes and no-profit purposes.
  • 16% of the total stake shall be paid as tax.
    However for the following types of betting the tax is either :
    -bookmaker betting: 30% of the amount by which the stake exceeds the prizes (the Gross Gaming Revenue) or
    -totalizator games: a monthly tax of 11% of the amount for which the stake in totalisator betting on horse or dog racing exceeds the prizes and an additional tax of 19% of the monthly Gross Gaming Revenue exceeding EUR 2,226,666 (DKK 16,700,000)
    Dansk TipstjenesteGroup: The profitgenerated afterpayment of tax to theDanish State, theprizes andadministrativeexpenses,depreciations,provisions etc. anddividend goes tocharitable causesand no-profitpurposes. (There are specificrules for localtotalizator games.
  • Regarding bingo there is no tax on the turnover. Prizes in cash are subject to a 15% tax on the part that exceeds EUR 26 (approximately DKK 193.899) the other prizes there is a 17,5% tax on the part that exceeds EUR 26 (approximately DKK 193.899. These taxes are only paid when the bingo is public.
  • Media games havenot yet beenofficially recognisedas being gamblingservices andtherefore there islittle informationavailable
  • Gains in money are taxed 15% of the part that exceeds EUR 26.8218 (DKK 200)
    Other gains are taxed 17,5% on the value of the prize that exceeds EUR 26.8218 (.DKK 200)
  • A gambling hall can arrange gambling with money that goes to charitable purposes which will reduce his tax (see machine gambling outside casinos) with 95% on the part that exceeds 30% of the gross gaming revenues.

ESTONIA

  • 18% of stakesfor a game ofskill
  • 18% of stakes for passive and instant lottery; 10% of stakes for number lotteries;
  • 15 000 kroons (958Euro) per onegambling table;18% of stakes forgames of chancewhich are notorganised on agambling table orgambling machine
  • 5000 kroons (32Euro) per onegambling machine
  • 5% of stakes
  • Concerning Bingo no indications can be made on the basis of information currently available.
  • Concerning media gambling services no indications can be made on the basis of information currently available.
  • Concerning sales promotional services no indications can be made on the basis of information currently available.
  • Concerning charity gambling no indications can be made on the basis of information currently available.

FINLAND

  • Games of chance are not subject to VAT.
  • The tax rate is 9.5% yield (lotteriskattelagen 26.2.1992 / 552, Art. 2 and 4)
    Veikkaus Oy 9.5% payroll tax. All its profits are subject to the levies of the Ministry of Education. In 2004 this number corresponded to 376 million euros.
  • The tax rate is 8.25% Performance (lotteriskattelagen 26.2.1992 / 552, Art. 2 and 4)
    RAY pays 8.25% tax. All its profits are subject to the public levies. For 2004 RAY distributed 73.8% of its total revenues games.
  • The tax rate is 8.25% Performance (lotteriskattelagen 26.2.1992 / 552, Art. 2 and 4)
    RAY pays 8.25% tax. All its profits are subject to the public levies. For 2004 RAY distributed 73.8% of its total revenues games.
  • The tax rate is 9.5% yield (lotteriskattelagen 26.2.1992 / 552, Art. 2 and 4)
    Fintoto payroll tax 9.5% and about 4% of sales to the Ministry of Agriculture and Forestry. All proceeds are distributed Fintoto trotting as prizes.
  • The tax rate is 5% of the total value of the prizes distributed. (Lotteriskattelagen 26.2.1992 / 552, Art. 2 and 4)
  • The tax rate is 30% of the total value of the prizes distributed. (Lotteriskattelagen 26.2.1992 / 552, Art. 2 and 4)
  • The tax rate is 30% of total value of the prizes distributed. (02/26/1992 Lotteriskattelage n / 552, Art. 2 and 4)
  • For games that have not been mentioned n Impositio rate is 1.5% yield of the lottery. (Lotteriskat telagen 26.2.1992 / 552, Art. 2 and 4)

FRANCE

  • Engaged research has uncovered no relevant information about it, see national report
  • Public levies rates on lottery games for the year 2003/2004: 69.1% of total gross revenues (stakes minus winnings)
    the statutory levy accruing to the organizers is subject to VAT at the rate of 19.6%.
  • Rate of public levies on casino games for the year 2003/2004:
    57.2% of total gross revenues (stakes minus winnings)
  • Gaming machines are only allowed inside casinos (see National Report p. 199-200)
  • * Paris on horse racing: rate of public levies on horse racing for the year 2003/2004: 51.6% of total gross revenues (stakes minus winnings)
    – Legal harvest accruing to companies Racing is subject to VAT at the rate of 19.6%.
    * other sports paris: 69.1% of total gross revenues (stakes minus winnings)
    the statutory levy accruing to the organizers is subject to VAT at the rate of 19.6%
  • Bingo is not a specific category of gambling in France. The games that resemble it are treated under “lotteries”
  • See “lotteries”
  • Only the Free sweepstakes are authorized in France
  • The games organized in the framework of charitable activities represent a very minimal share of games in France. Their organization is subject to authorization and are not subject to specific taxation.

GERMANY

  • Winnings are not subject to income taxation
    For income and corporate income taxes of the operators see the national report
  • Public lotteries, raffles:
    Lottery tax (sec. 17 RennLottG, sec. 37 ABRennLott): 20% of the scheduled prize net of tax, this corresponds to 16 2/3% of the gross stakes turnover tax only in the event of exemption from lottery tax
    License levy: If this system is chosen by a Land the percentage differs: e.g. 20% of the stakes or “at least 20% of the gaming capital for number lotteries, 25% of it for other lotteries and 17 1/3% of the stakes for sports bets.”
    In some cases thepercentage can beraised up to a max of30% and an additionallicense tax can be fixedamounting up to 60% ofthe annual surplus
  • Kursaal levy, percentage differing from Land to Land (50% or more of the gross revenues, following a graduation system) Some Länder receive an additional levy (up to 20% of the annual gross revenue) and even a third levy calculated on the basis of the annual surplus or deficit of the licensee (30%)
    The exemption from turnover tax in sec.4 Nr. 9b UStG has been abolished by the act on the reduction of abusive tax arrangements, 28.4.2006 (BGBl. I 1095)
    According to the legislative materials on the modification of the turnover tax act, that the Länder might equalize the changes caused by the new turnover tax obligation by lower rates of kursaal levies
  • Turnover tax obligation 16% (it will be changed into 19 % by 1.1.2007)
    Change of jurisprudence: The VAT taxation of machine gaming outside casinos contrary to casino games has first been abolished due to the recent decision of the ECJ in the cases C-453/02 and C- 462/02 (Linneweber and Akritidis) and the decision of the BFH (12.5.2005, V R 7/02) which declared Art. 13 B lit. f dir. 77/388/EWG for directly applicable. By 28.4.2006 a new act on the reduction of abusive tax arrangements, 28. 4. 2006 (BGBl. I 1095) leads to a VAT obligation for both machine gaming outside casinos and casino gambling activities
    Entertainment tax in the Länder lump sum taxation pursuant to entertainment tax statutes or local tax statutes (varying from 0€ in Bavaria where a entertainment tax is forbidden, in the other Länder from 46-306 € per machine/month for arcades; in restaurants the margin varies from 0-100€) Recent decisions question the constitutionality of the lump sum taxation (contradiction to principle of equality)
  • Oddset-bets:
    Lottery tax (sec. 17 RennLottG, sec. 37 ABRennLott): 20% of the scheduled prize net of tax, this corresponds to 16 2/3% of the gross stakes turnover tax only in case of exemption from lottery tax
    Horse Races: 16 2/3% of the stakes turnover tax only in case of exemption from horse race tax
    License levy: If this system is chosen by a Land the percentage differs, see lotteries (e.g. “17 1/3% of the stakes” or “15% of each betting contract oddest bets and 21% for other bets” or “20% of the stakes”).
  • See lotteries
  • Turnover tax, 16%
  • Turnover tax 16%

GREECE

  • The net proceeds of lotteries run by the state (Laiko, Ethniko, Europaiko and Stikmieo) is paid entirely to the state budget. It is the same with the lottery Idiko Kratiko but its product is assigned wholly and exclusively charitable purposes.
    The gross annual income from lotteries based on figures of the “Lotto” and “PROTO”, are subject to public levies at rates specified by Article 1 paragraph 3 of the Law 2433/1996 as amended by section 30 paragraph 7 of the Law 2579/1998, as follows:
    6) 19% (LOTTO) and 10% (PROTO), OPAP paid by the general budget of the State,
    7) 12% (LOTTO and PROTO), assigned to the Ministry of Culture,
    8) 2% (LOTTO and PROTO), assigned to the Department of Press and cummunication,
    4) 17% (LOTTO) and 12% (PROTO), assigned to the General Secretariat of the sport.
    The winnings from lotteries that took place in Greece as well as gains from prognoses for football games (Greek: PROPO) are subjected, after deduction of 100 euros on total gains from this activity to a tax at 10%. The tax is payable by the winner (Articles 58 and 60 of the tax code successions, donations and lottery winnings).
  • The law 2206/1994 (as amended by Law 3139/2003) provides, in Article 1, paragraph 6, the various rights and state revenues about casinos, as follows:
    f) A single payment of 6000 euros when filing the application for a casino license;
    g) The proposal to offer the state a minimum amount fixed by law and vary according to the place of installation of the casino (p. ex. 4,402,054 euros, 29 euros in Corfu and 16,140,865, 74 Mont Parnes), to obtain the requested concession;
    h) participation in the gross profits from games of not less than 30% for the casinos located in Attica, Thessaloniki, Crete, Rhodes, Achaia and 20% in Corfu and other areas. Regarding the Mont Parnes casino located in Attica, this contribution shall be 30% for annual gross profits to the level of EUR 200 million and 31.5%, 32% and 32.5% for gross annual earnings in excess of 200, 250 and 300 million respectively; ) A special annual fee of 730,000 euros to be paid to the Greek State for the maintenance of a casino license
  • Gaming machines are not allowed outside casinos in Greece
  • The gross annual income from mutual paris on horse races, except mutual paris called sweepstakes, are subject to a public levy at the rate of 3% paid monthly to the state budget (Article 34 of the 1326 Act / 1983 as amended by atricle 30, paragraph 8 of Law 2579/1998).
    Gains from paris to a variable or fixed dimension beyond 146.74 euros are subject to a public levy at the rate of 5%, selected by OPAP at the time of payment to the winners and paid by OPAP in Ministry of Finance (Article 2 paragraph 2 of the Law 2433/1996).
  • The bingo of services is prohibited in Greece.
  • The supply of gambling services by and for media publishers account is forbidden in Greece.
  • The supply of gambling services aimed at promoting sales is forbidden in Greece.
  • Greek law does not allow the offer by charitable organizations play services. A portion of the net proceeds of the State Lottery is nevertheless assigned to charitable

HUNGARY

  • Operators of gambling activities, including the operators of gaming slot machines for amusement, shall be subject to pay game taxes in accordance with the Chapter III of the Act XXXIV of 1991 on Gambling Operations
  • The game tax on raffleand drawing gameswhich are not operatedcontinuously except forthe drawing specified inSection 16 of the Act onGambling Operation,shall be 16 per cent ofthe monthly prize-pool;the game tax on lotteriesshall be 24 per cent ofthe prize-pool;
  • The game tax on keno shall be 24 per cent of the net monthly proceeds – the game tax on joker game shall be 17 per cent of the monthly prize pool. The game tax on other lottery games shall be 17 per cent of the monthly prize pool. (Section 32 of the Act XXXIV of 1991 on Gambling Operations) The game tax on casinos, including the money-winning machines operated therein, is
    – 30 per cent of the net monthly gaming revenues if the net game revenue achieved in the fiscal year is 0 to 5 billion HUF ;
    – 1 billion and 500 million HUF plus the 25% of the amount over 5 billion HUF if the net game revenue is between 5 billion and 10 billion HUF;
    -and 2 billion and 750 million HUF and 10% of the amount over 10 billion HUF. (Section 35 of the Act XXXIV of 1991 on Gambling Operations)
  • The game tax on money-winning machines, with the exception of the money winning machines operated in casinos, shall be 100.000 HUF per month per location. The annual tax of gambling machines shall be 60,000 HUF per machine. (Section 33 and 33A of the Act XXXIV of 1991 on Gambling Operations)
    The game tax on totalizer-type betting organized continuously shall be 17 per cent of the monthly prize-pool and on noncontinuously organized totalizertype betting shall be 17 per cent of the prize-pool;
    -the game tax on keno shall be 24 per cent of the net monthly proceeds.
    -the game tax on joker games shall be 17 per cent of the monthly prize-pool.
    The game tax on bookmaking shall be 30 per cent of the net gambling proceeds. (Section 32 of the Act XXXIV of 1991 on Gambling Operations)
  • The game tax on bingo games shall be 7 per cent of the monthly prize-pool. (Section 32 of the Act XXXIV of 1991 on Gambling Operations)
  • °Sales promotionalgambling is exceptfrom game tax(Section 32 of theAct XXXIV of 1991on GamblingOperations).
  • In Act XXXIV of1991 onGamblingOperations noparticularlyreference to suchkind of games
  • In Act XXXIV of 1991 on Gambling Operations no particularly reference to such kind of games

IRELAND

  • Betting services are not subject to VAT, bookmakers do not need to register nor can they claim VAT paid.
  • Exempt
  • N/A
  • Gaming machinelicence fees are€145 for up to threemonths and €505 foran annual licence
  • The applicable rate of tax for betting has now been reduced to 0% tax on home betting (i.e. oncourse) and 2% of turnover on “away events” and offcourse betting. Bookmakers are permitted to absorb and pay the betting tax rather than charge it to the customer. A bookmaker pays an annual licence fee of €250.
    An annual Standing Charge of €500 plus 0.5% of the betting turnover is payable to Horse Racing Ireland. Bookmakers pay a pitch fee to individual racecourses or greyhound tracks based on the price3 charged to the general public for admission.
    Excise duty on registration or renewal of registration of bookmaking premises is €380.
    Reinstatement of a licence after deregistration is subject to a fee of €2000
  • Treated as lottery.
  • N/A
  • May, in some cases, be treated as lotteries

ITALY

  • For traditional lotteries 35.07 %, for instantaneous lotteries 37.58 %
  • Determined by eachof the four Regionswhere the fourexisting casinos arelocatedEither 8.00 % or13.50 % accordingto the type ofmachine
  • For sports betting generally 33.84 %
    For bets at fixed quote other than horse races 10 %
    For bets at totalisator other than horse races 10 %
    For horse races 4.51 % goes to the State and 12.6 % goes to the UNIRE
    For Totip, 28.63 % goes to the State and 10.3 % goes to UNIRE
    For TRIS (a particular horse race) 9.00 % goes to the State and 21.8 goes to the UNIRE
  • 20 %
  • N/A
  • N/A
  • N/A

LATVIA

  • If games of chance are organized by means of telecommunicat ions, the gaming tax disregarding the type of game of chance organized, is 10 percent from all bets paid and accepted.
  • For national lotteries – for each calendar year – 10 000 Latvian Lats (14.400 Euro); for local lotteries – for each calendar year – 500 Latvian Lats (720 Euro); for national instant lotteries – for each draw – 6 000 Latvian Lats; for local instant lotteries – for each draw – 500 Latvian Lats; for single local lotteries – for each draw – 25 Latvian Lats. lotteries – 8% from ticket sales; instant lotteries – 10% from ticket sales.
  • for issuance of thespecial license –300 000 Latvian Lats(432.000 Euro),for prolongation ofthe special license –25 000 Latvian Lats(36 000 Euro),for yearly reregistrationof thespecial license –25 000 Latvian Latsfor each year;for permission tooperate a casino –20 000 Latvian Latsfor each year;roulette (cylindricalgame) – for eachtable that isconnected to therotating device ofroulette – 19 800Latvian Lats;cards and dicegames – for eachtable – 4 800 LatvianLats;video games andmechanic slotmachines, that are incasinos and gaminghalls – for theplaying place ofeach machine – 840Latvian Lats;
  • for issuance of the special license – 300 000 Latvian Lats, for prolongation of the special license – 25 000 Latvian Lats, for yearly reregistration of the special license – 25 000 Latvian Lats for each year; for permission to operate a gaming or bingo hall –1 500 Latvian Lats for each year; video games and mechanic slot machines, that are outside casinos and gaming halls – for the playing place of each machine – 1 140 Latvian Lats.
  • for issuance of aspecial license –30 000 Latvian Lats(43 200 Euro),for prolongation ofthe special license –30 000 Latvian Lats,for yearly reregistrationof the special license –30 000 Latvian Latsfor each year;30 000 Latvian Latsfor each year and 10percent from theincome of theorganisation of thegame.
  • for issuance of the special license – 300 000 Latvian Lats, for prolongation of the special license – 25 000 Latvian Lats, for yearly reregistration of the special license – 25 000 Latvian Lats for each year; for permission to operate a gaming or bingo hall –1 500 Latvian Lats for each year; bingo (up to 100 seats) – 11 000 Latvian Lats; bingo (up to 200 seats) – 16 500 Latvian Lats; bingo (up to 300 seats) – 22 000 Latvian Lats; bingo ( more than 300 seats) – 33 000 Latvian Lats;
  • for issuance of a special license – 10 000 Latvian Lats, for prolongation of a special license – 10 000 Latvian Lats, for yearly reregistration of a special license – 10 000 Latvian Lats for each year. 10 percent from the income of the organisation of the game.
  • See lotteries since the organiser has to obtain a lottery licence for offering sales promotional gambling services (Art. 3 of the Law on Promotional Lotteries).
  • Non-profit organisatio ns, their associations and religious organisations are exempt from the state fee for the issuance of the special licence and lotteries tax if they organize only single local lotteries as provided in the law.

LITHUANIA

  • When operating lotteries, a tax rate of 5% shall be imposed on the lottery and gaming tax base. tax base shall be the total face value of the tickets distributed in a lottery.
  • A fixed amount for each gaming device
    1) LTL 1 800 (app. 521 EUR) per gaming machine of category A for each taxable period;
    2) LTL 600 (app. 174 EUR) per gaming machine of category B for each taxable period;
    3) LTL 12 000 (app. 3.475 EUR) per roulette, card or dice table for each taxable period.
  • A fixed amount for each gaming device
    1) LTL 1 800 (app. 521 EUR) per gaming machine of category A for each taxable period;
    2) LTL 600 (app. 174 EUR) per gaming machine of category B for each taxable period;
  • When operatingbingo, totalisator andbetting, a tax rate of15% shall beimposed on the taxbase which shall bethe total amount ofproceeds less theamount of prizesactually paid out.
  • When operating bingo, totalisator and betting, a tax rate of 15% shall be imposed on the tax base which shall be the total amount of proceeds less the amount of prizes actually paid out.
  • In the Law noparticularlyreference to suchkind of games (seenational report).
  • In the Law no particularly reference to such kind of games (see national report).
  • In the Law no particularly reference to such kind of games (see national report).

LUXEMBOURG

  • Games of chance are not subject to VAT, nor to the taxes on the revenue and fotune (Article 12 para. 5 of the Act of April 20, 1977) See the National Report of the Grand Duchy of Luxembourg, page 493.
  • The law on lotteries of 15 February 1882 does not contain tax rules, subjecting them to a special tax lottery.
  • Tax from 10 to 80% (Article 12 para. 2 of the Act of 20 April 1977).
  • Section 3 of the Act of 20 April 1977 shall operate slot machines on public roads and in public places (excluding casinos).
  • Sampling 15% of the gross sums involved in betting (Article 17 of Regulation Grandducal of 7 September 1987 on paris on sporting events)
  • Tax from 10 to 80% (Article 12 para. 2 of the Act of 20 April 1977).
  • Tax from 10 to 80% (Article 12 para. 2 of the Act of 20 April 1977).
  • Tax from 10 to 80% (Article 12 para. 2 of the Act of 20 April 1977).
  • Tax from 10 to 80% (Article 12 para. 2 of the Act of 20 April 1977).

MALTA

  • The annual licence fee for land-based casinos is. €46’000.
    The annual licence fee for any class of remote gaming licence is Lm 3’000 (approx. €7’000), plus an additional is Lm 3’000 (approx. €7’000) per month gaming fee.
    Refer also tocountry report
  • 20% on gross turnover, 12.5% on gross turnover from instant lottery tickets. The national lottery operator pays an annual licence fee of approx €46’000.
    Refer also to country report
  • 36% on gross turnover on table games (15% on gross turnover paid by Junket players) and 40% on gross turnover on slot machines (25% in the case of Junket players).
    All remote gaming (except betting and pool betting) is subject to fees of Lm 3’000 (approx. €7’000) per month
    The annual licence fee for any class of remote gaming licence is Lm 3’000 (approx. €7’000).
    Refer also to country report
  • Refer also to country report 25% on net turnover;
    0.5% on gross turnover on online betting.
    The annual licence fee for any class of remote gaming licence is Lm 3’000 (approx. €7’000).
    Refer also to country report
  • 20% on gross turnover. Online bingo operators are subject to an annual licence fee of is Lm 3’000 (approx. €7’000) and a monthly gaming fee of is Lm 3’000 (approx. €7’000).
    Refer also to country report
  • Refer also to country report
  • Refer also to country report
  • Refer also to country report

NETHERLANDS

  • No VAT is due for games of chance, except for machine gambling in and outside casinos.
    No gaming tax is levied if the prize money does not exceed 454 euro, or if the prize money does not exceed the stake money (article 4 par. 1 litt. a and b Act on Games of Chance).
    Refer also to the country report, p. 557.
  • A gaming tax of 29 % is imposed on the winnings of a lottery (article 5 par. 1 litt. b Act on Gaming Taxes).
  • A tax of 40, 85% is levied on the net gaming revenue (wager minus prizes) of casino gaming (article 5 par. 1 litt. a Act on Gaming Taxes).
  • Machine gambling is subject to ordinary taxation rules, as it is considered as a regular commercial activity (article 2 of the Dutch Act on Gaming Taxes).
  • A gaming tax of 29% is imposed on the winnings of a sports bet or horse racing (article 5 par. 1 litt. b Act on Gaming Taxes).
  • No gaming taxes levied on a bingo, since the prize money of a bingo does not exceed 454 euro (article 4 par. 1 litt. a and b Act on Games of Chance).
  • The Dutch gaming regulations do not contain a specific taxation regime for media gambling services, hence media gambling is subject to the ordinary gaming tax of 29 % is imposed on the winnings (article 5 par. 1 litt. b Act on Gaming Taxes). No gaming tax is levied if the prize money does not exceed 454 euro, or if the prize money does not exceed the stake money (article 4 par. 1 litt. a and b Act on Games of Chance).
  • The Dutch gaming regulations do not contain a specific taxation regime for sales promotional gambling services, hence sales promotional gambling is subject to the ordinary gaming tax of 29 % (article 5 par. 1 litt. b Act on Gaming Taxes). No gaming tax is levied if the prize money does not exceed 454 euro, or if the prize money does not exceed the stake money (article 4 par. 1 litt. a and b Act on Games of Chance).
  • A gaming tax of 29% is imposed on the winnings of a charity game (article 5 par. 1 litt. b Act on Gaming Taxes).

POLAND

  • The tax on games rate amounts to 10% in case of award lotteries 10-15% in case of cash lotteries 45% in case of video lotteries
    The tax base -in lotteries is the sum of receipts collected from the sale of lottery tickets.
    -in video lotteries the difference between the amount paid or credited in terminal memory and the amount of winnings gained by the participants of games.
  • 45% in case of all games organised in casinos.
    The tax base in cylindrical games, dice games and card games is the difference between the cash payments in virtue of card exchange in a counter and on a game table and the amounts paid out for the returned tokens at the counter.
  • 45% in case of games organised slot machines games salons
    The tax base in slot machine games is the difference between the amount collected from the tokens exchange or paid in at the counter and credited in the slot machine memory or paid into the slot machine and the amount of winnings gained by the participants of games.
    Slot machine games with low prizes pay the tax in a form of a lump sum amounting to the equivalent of:
    1) 100 euro – for the period from 1 January 2005 to 31 December 2005
    2) 125 euro – for the period from 1 January 2006 on a monthly basis for the games on every slot machine.
  • 20-25% in case of number games
    The tax base is the sum of all the prepaid stakes.
  • The tax on games rate amounts to 10% in case of raffle bingo games, cash bingo games and mutual wagetring 15% in case of other bingo games
    The tax base in cash bingo game is the nominal value of the cards purchased by the company in raffle bingo game is the nominal value of the cards used for the game; telebingo game is the sum of receipts collected from the sale of lottery tickets or other participation receipts
  • In the Law noparticularlyreference to suchkind of games (seenational report)..
  • In the Law noparticularlyreference to suchkind of games(see nationalreport).
  • In the Law no particularly reference to such kind of games (see national report).

PORTUGAL

  • There are not axes levied on the lottery operations of the SCML. This institution benefits of tax excemption (Decree-Law N° 262, 12.12.2003). The SCML pays VAT for goods and services purchased (between 5% and 21%).
    According to article 84 of Decree Decree- Law No. 422/89, besides the special tax on gaming no other general or local tax shall be claimed from concessionaire companies.
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  • Between 30-50%. Of gross revenue.
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  • Between 20-25%

SLOVAKIA

  • For ticket lotteries 15 % of the financial guarantee (financial guarantee is 5 % of the sum calculated as the product of the number of tickets issued and price of one ticket);
    – for raffles 15 % of the sum calculated as the product of the number of tickets issued and price for one ticket;
    – for number lotteries 17 % of the financial guarantee;
    – for instant lotteries 20 % of the sum calculated as the product of the number of tickets sold and the price for one ticket, minus the total amount of pay-off during the whole period of instant lottery ticket sales
  • For betting games in a casino 27 % of the financial guarantee, of which 24 % to the state budget and 3 % to the budget of the town in which the casino is located (- financial guarantee for gambling games in a casino is SKK 15,000,000 – app.387.000 EUR).
  • Games operated via gambling machines SKK 45,000 (app. 1.160 EUR) per calendar year and per machine (financial guarantee for gambling machines, SKK 10,000 /app. 258,- EUR/ for each machine).
  • For betting games, except for horse racing, 5 % of the financial guarantee, while in the case of course bets 4.5 % of the financial guarantee to the state budget and 0.5 % to the town budget (financial guarantee for betting games except for course bets SKK 1,000,000 /app.26.000 EUR/ for course bets, SKK 10,000,000/app. 258.000,-EUR).
  • For bingo 4.5 % of the financial guarantee, of which 4 % of the financial guarantee to the state budget and 0.5 % of the financial guarantee to the budget of the town in which the bingo game room is located (financial guarantee is SKK 500,000 for one operation of bingo
    For special bingo 4 % of the financial guarantee
  • Gambling games operated via telecommunication devices, 10 % of financial guarantee
    Gambling games operated on the internet 27 % of the difference between accepted bets and pay-offs to the state budget
    (Financial guarantee for gambling games operated by means of technical equipment operated directly by gamblers or operated by means of telecommunication equipment, and video games SKK 3,000,000/app 78.000 EUR).
  • In the Law no particularly reference to such kind of games (see national report).
  • In the Law no particularly reference to such kind of games (see national report).

SLOVENIA

  • Games of chance are exempt from the VAT liability (Art. 27 of VAT Act)
    5% tax on games of chance
    Concession fee for all particular games except slot machines is monthly 5% from the gaming revenue
  • On the territory of Slovenia are countrywide allowed by Law as a maximum two gambling business keepers (lotteries).
    A conduct of games of chance is in Slovenia subject to the following taxes:
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    moreover the concession (license) fee has to be paid for conduct of particular games.
    The concession fee for particular games conduct shall be calculated monthly, on gaming revenues accruing from every single game. The calculation base shall be the sum of daily computations for each separate game (cumulatively). The licensee shall submit the monthly report distinguishing types of games.
  • Government of Slovenia is limited in issuing gambling licenses. It can issue up to 15 licenses for “game houses” and 40 licences for “game rooms
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    Concession fee depending on an amount of the month revenue between 5% and 20%
  • 5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    Concession fee depending on an amount of the month revenue between 5% and 20%
    See also national report on license restrictions in Law on Games.
  • A conduct of games of chance is in Slovenia subject to the following taxes:
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    moreover the concession (license) fee has to be paid for conduct of particular games.
    The concession fee for particular games conduct shall be calculated monthly, on gaming revenues accruing from every single game. The calculation base shall be the sum of daily computations for each separate game (cumulatively). The licensee shall submit the monthly report distinguishing types of games.
    Concession fee depending on an amount of the month revenue between 5% and 20%
    See also national report on license restrictions in Law on Games.
  • A conduct of games of chance is in Slovenia subject to the following taxes:
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    moreover the concession (license) fee has to be paid for conduct of particular games.
    The concession fee for particular games conduct shall be calculated monthly, on gaming revenues accruing from every single game. The calculation base shall be the sum of daily computations for each separate game (cumulatively). The licensee shall submit the monthly report distinguishing types of games.
    Concession fee depending on an amount of the month revenue between 5% and 20%
    See also national report on license restrictions in Law on Games.
  • A conduct of games of chance is in Slovenia subject to the following taxes:
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    moreover the concession (license) fee has to be paid for conduct of particular games.
    The concession fee for particular games conduct shall be calculated monthly, on gaming revenues accruing from every single game. The calculation base shall be the sum of daily computations for each separate game (cumulatively). The licensee shall submit the monthly report distinguishing types of games.
    Concession fee depending on an amount of the month revenue between 5% and 20%
    See also national report on license restrictions in Law on Games.
  • A conduct of games of chance is in Slovenia subject to the following taxes:
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’s corporate tax on the profit gained for the year 2005 is 25%;
    moreover the concession (license) fee has to be paid for conduct of particular games.
    The concession fee for particular games conduct shall be calculated monthly, on gaming revenues accruing from every single game. The calculation base shall be the sum of daily computations for each separate game (cumulatively). The licensee shall submit the monthly report distinguishing types of games.
    Concession fee depending on an amount of the month revenue between 5% and 20%
    See national report on license restrictions in Law on Games.
  • A conduct of games of chance is in Slovenia subject to the following taxes:
    5% tax on games of chance; the taxable basis being the value of payments received for the participation in a game of chance, reduced by the value of prizes paid out;
    operation of games of chance is also taken as the performance of any and all other activities that are prescribed to the operator by other legal regulations
    . The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Slovenian’ s corporate tax on the profit gained for the year 2005 is 25%;
    moreover the concession (license) fee has to be paid for conduct of particular games.
    The concession fee for particular games conduct shall be calculated monthly, on gaming revenues accruing from every single game. The calculation base shall be the sum of daily computations for each separate game (cumulatively). The licensee shall submit the monthly report distinguishing types of games.
    Concession fee depending on an amount of the month revenue between 5% and 20%
    See national report on license restrictions in Law on Games.

SPAIN

  • No TVA on gaming operations. No tax on lottery.
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  • Depending on the concerned CCAA, between 20-61% on a progressive scale.
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  • In the Basque CCAA 10%
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  • Depending on the concerned CCAA, between 10-31% 10% of the value of the prizes.
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SWEDEN

  • Games of chance are not subject to VAT.
  • The rate is 36% on the remaining amount after prices were deducted from the total of paris ((Lag 1991.. 1482 om lotteriskatt art 1b) As “Svenska Spel” is part of the state, it should not pay taxes (art. 1a p. 5). However there is a collection of all profits Svenska Spel. Taxes will not be paid by certain ideational organizations (art. 1a p. 4).
  • For roulette tables taxes are:
    -2000 SEK (211 EUR) per month for a table.
    -4000 SEK (421 EUR) per month for two tables.
    -9000 (946 EUR) per month for three tables.
    -18000 SEK (1892 EUR) per month for four tables.
    -25000 SEK (2628 EUR) per month for five tables.
    -More Than 5 tables: 5000 SEK (526 EUR) per table. (Lag om spel på skatt Art. 10.) As Cosmopol Casino is part of the state, it should not pay taxes (art. 1a p. 5). However there is a levy on all profits.
  • A lottery where prices are not money should not pay taxes (Lag om lotteriskatt, Art. 1a p.6).
    If prices are silver one has paid taxes at the rate of 36% on the remaining amount after prices were deducted from the total of paris. (Art. 1b) As “Svenska Spel”, which has a general authorization operate its machines, is part of the state, it should not pay taxes (art. 1a p. 5). However there is a levy on all profits.
  • The rate is 36% on the remaining amount after prices were deducted from the total of paris. (Lag om lotteriskatt art. 1b)
  • A lottery where prices are not money should not pay taxes (Lag 1991: 1482 om lotteriskatt, art 1a p. 6.).
    The general license authorizes Svenska Spel organizing bingos. As “Svenska Spel” is part of the state, it should not pay taxes (Lag om lotteriskatt art. 1a p. 5). However there is a collection of all profits.
    Ideational organizations (lotterilagen art. 15) can organize bingo. They should not pay taxes (Lag om lotteriskatt art. 1a p. 4)
  • In principle a prohibition, but as Svenska Spel has even received an authorization allowing it to organize this type of game. As Svenska Spel is part of the state, it should not pay taxes (art. 1a p. 5) . However there is a collection of all profits.
  • The study of the legislation did not reveal any special provisions of that hypothesis
  • The study of the legislation did not reveal any specific provisions to this hypothesis

UNITED KINGDOM

  • No general gambling tax is levied in the United Kingdom and the sectorspecific taxes that are levied can be understood individually, without the need for general comments.
  • National Lottery Duty atthe rate of 12% on grossticket sales receipts
  • Gaming Duty on various amounts of gross gaming yield from casino operations:
    2.5% of the first £534’500 (approx. €750’000)
    12.5% of next £1’186’500 (approx.€1’750’000)
    20% of the next £1’186’500 (approx.€1’750’000)
    30% of the next £2’078’000 (approx. €3 million)
    40% of yield above £4’986’500 (approx. €7’250’000)
  • Gaming MachineLicense Duty at alump sum rate of£1’915 (approx.€2’800) per annumper machine
  • General Betting Duty at the rate of 15% of receipts net of winnings paid out, or 15% of commissions taken from punters. On-course betting at horse or greyhound race meetings is exempted.
    Pool Betting Duty at the rate of 15% of receipts net of winnings paid out.
    Horserace Betting Levy at the rate of 10% of profits from fixed-odds betting on British horseracing, reduced to 6% for on-course bookmakers and nominal amounts for betting on trotting and point-to-point events.
  • Bingo Excise Duty atthe rate of 15% ofreceipts net ofwinnings paid out
  • The turnover generated by or profits made as a result of media gambling services offered in the United Kingdom are not subjected to any specific duty or tax. To the extent that that an enterprise does earn profits from such competitions, those profits will of course be subjected to normal corporate or personal income tax.
  • The turnover generated or profits made by lawful sales promotional prize competitions in the United Kingdom are not subjected to any specific duty or tax. To the extent that that an enterprise does earn profits from such competitions, those profits will of course be subjected to normal corporate or personal income tax.
  • Charitable societies are not required to pay lottery duty or other taxes on the proceeds of charitable lotteries. Although the licensing fees are not negligible (£4’810 (approx. €7’070) for initial registration and up to £454 (approx. €670) per lottery), they are of no real economic significance, given that a charity may earn up to £2’000’000 (approx. €2’940’000 ) per annum from the organisation of lotteries.

© European Union

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