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Gambling taxes: top 5 countries with the lowest rates

Gambling taxes in Malta, Singapore, Belarus, Finland, and Gibraltar. Photo: Pixabay

Gambling taxes in Malta, Singapore, Belarus, Finland, and Gibraltar. Photo: Pixabay

Each country has its own approach to the gambling business. Somewhere a complete or partial ban is imposed, somewhere on the contrary—a successful and functional market is being built.

The gambling business in the countries that have legalized it is a major source of income for the state budget.

The Page has been finding out how countries regulate the gambling business, and what countries have the most favorable terms and low taxes.

Gambling taxes in Malta

The Maltese gambling license is considered one of the most reputable. The regulation of online gambling was imposed there back in 1998, but the industry began to show stunning results in 2004. At that time the country introduced the first law on online gambling in the EU.

Gambling in Malta brings in more than 10% of GDP, or more than 1.2 billion euros per year. Malta regulator—The Gaming Authority MGA scrutinizes the future and current licensees. If something arouses suspicion, the license may be revoked. But if everything is in order, operators with a Malta license can legally operate in the markets of Austria, Canada, Finland, Sweden, and Japan.

The tax rate is 5%.

Gambling taxes in Singapore

Despite the fact that the gambling business in Singapore is partially legalized, it is considered one of the largest gambling centers in Asia. Several agencies regulate the industry: the Casino Regulatory Authority (CRA), the MHA Gambling Regulatory Authority, and the Tote Board. The licenses are handled by the Ministry of Home Affairs (MHA). In April 2020, the MHA announced that a new body would be established by 2021 to regulate the industry.

Singapore legislation allows multiple operators and bookmakers to organize their work. The regulation of their work is quite strict, but Singapore still meets competition with the largest gambling zones.

The tax for online gambling in Singapore is 5%, for land-based casinos—15%.

Gambling taxes in Belarus

Belarus was the first among the CIS countries that allowed online casinos to operate on the territory of the republic. But gambling there is very controlled: the decrees that regulate the market are signed by Alexander Lukashenko personally.

To run a gambling business in Belarus, one must have a license and pay a state fee. The license is valid for 10 years, but it can be renewed. Online and offline activities are licensed separately from each other.

Belarus has a very good and understandable tax regime. Companies pay 4% of GGR—the revenue.

Gambling business in Finland

In Finland, the gambling market is also controlled by the state. The sphere is monopolized and divided among three firms. Thanks to this, the money that the market earns goes to charity, the development of sports, medicine, science, and support for the arts.

In Finland, companies will have to pay 12% of the lottery operator's gross profit.

Gambling business in Gibraltar

The gambling industry is large-scale in Gibraltar as well. Gibraltar was one of the first jurisdictions to issue licenses for online gambling. Gibraltar has a good reputation and only those operators can obtain licenses there who have proven themselves well over the years.

The tax rate for operators is only 0.15% of the revenue. A company with a B2B license will have to pay £100,000 annually, and a company with a B2C license will have to pay £75,000.

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