With online gambling being more and more popular across Europe, it was just a matter of time before governments started slapping taxes on it.
Not just for the operators, but on winnings too. It’s a bit part of the online gambling regulation in the EU, although countries can impose gambling taxes on their own.
What’s the rate and is there a generally accepted one or do rates vary depending on the game? Most governing bodies focus their attention on the winnings depending on the game type rather than anything else knowing that it’s a very important source of revenue. In this guide to online gambling taxation, we’ll tell you everything you need to know about it.
Most of the winnings obtained through online gambling are taxable in the European Union. They are classified as capital gains and should be declared on your personal income tax form. In general, winnings under €1,000 are not taxable, although countries can decide otherwise. However, if your net profits from gaming and/or together with other income exceed that amount, you will need to declare them.
It all depends on local laws and how each country treats the EU regulations. The tax rate percentages vary. On average, the higher the amount you win, the higher the taxes. All these regulations are overseen by various tax agencies which collects data on each player and their winnings so they can pay what they owe to the country.
Ignorance of the law is impossible and will only get you to further troubles. If you’re a regular online casino visitor, it’s best to check out your local taxation laws and see what you do if you happen to score a bigger win.
Late payment interests will be applied to your winnings if you don’t declare them. However, in some countries it’s a criminal offense, so you may be facing even harsher penalty. On average, penalties for not paying these taxes can range between 50% to 150% of the fee, so you best check your local laws and declare your winnings.
Yes, you must. That’s what the law recommends and you must stick to it as a law-abiding citizen. Failing to disclose this on your personal tax form can lead to harsh penalties.
It depends, but on average, expect to pay 20% or more in most countries. The tax rate is often scalable, so higher winnings will lead to higher taxes.
Yes, they do. Just like players, operators pay taxes to be able to operate. It’s a costly business and everyone must subject to the law.
Absolutely. Tax rates are applied according to laws so you don’t need to worry about your country ripping you off with no basis.
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