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Gambling Taxes and Laws

Gambling Taxes and Laws

The laws and taxes in online gambling is different from country to country. In this guide we’ll try to get around as many gambling laws and taxes we can find. This means you can find out whether or not you have to pay gambling tax on your winnings, and also get to know more about the laws that the casinos have to follow.

Gambling Laws

Canada

As a general rule, all types of gambling are illegal within the borders of Canada if it’s not licensed or managed by the government. This means the operators have to have a license owned by a provincial government, for it to be legal. This also means that Canadians are allowed to legally gamble online.

Canadians are allowed to gamble online due to it being a gray area. All foreign operators are allowed to offer their services to Canadians, as long as it’s offered to them outside of Canada. If the providers wish to offer it to Canadians within the borders, they have to have a license issued by a provincial government.

Denmark

All casinos with a danish license from Spillemyndigheden are allowed to target the danish market. This means all foreign casinos without a license from Spillemyndigheden are not allowed to target the danish market in any way. This includes not being allowed to offer payments in DKK, Danish language on the site or support in Danish.

In january 2020 the danish government and Spillemyndigheden enforced a new law stating that all bonuses and/or free spins should have a wager of maximum 10x. This means all casinos offering bonuses and/or free spins to Danish players with a Spillemyndigheden license are obligated to put the wager to a maximum of 10x.

All Danish players are legally allowed to play on foreign websites/online casinos, the only casinos they are not allowed to play on, are casinos not licensed in Denmark which are targeting the danish market in any way.

Some casinos don't accept players from Denmark.

Finland

All gambling in Finland is regulated by the Lotteries Act, and the only company allowed to offer gambling services in Finland is Veikkaus Ltd, which is owned by the state. This means all foreign casinos are not allowed to target the Finnish market directly in any way.

All Finnish players are legally allowed to play on foreign websites/online casinos. This is due to the Finnish government not imposing any types of restrictions on the Finnish residents.

Some casinos do not accept players from Finland.

Germany

In Germany online gambling is mostly out-lawed and hosting an online casino is illegal. This doesn’t stop many players from gambling, and therefore many players still enjoy placing bets and wagering online.

As of 1st July 2021 new rules and laws are being made. This means sports betting, online poker and online casino games will become legal in Germany. The new laws do come with some restrictions such as online slots games will be subject to a limit of €1 per spin and they must be offered separately to table games. This means before the laws come into effect, states in Germany will be able to veto table games at online casinos.

Norway

In Norway all forms of gambling are controlled by The Norwegian Gaming Authority. This means there’s only two companies allowed to offer gambling services and lotteries. (There’s also some charitable / humanitarian organisations holding a license from the Norwegian Gaming Authority).

All Norwegian residents are legally allowed to play on foreign websites/online casinos. Although the residents are allowed to gamble on their website/online casinos, they are not allowed to advertise directly to Norwegians offering their services.

Sweden

In Sweden all gambling is controlled by Spelinspektionen and is legal for all Swedish residents when they’re above 18. This means Swedish residents are also allowed to play on foreign casinos without a Spelinspektionen license. The foreign websites/casinos are not allowed to target the Swedish market with advertisements in any way.

The Netherlands

Currently the Gambling Act of 1964 is still active, and this means that online casinos are not allowed. This does not include foreign casinos which aren't specifically designed for the Dutch audience and therefore the residents are allowed to play on foreign casinos, since it’s not included in the Gambling Act of 1964.

On January 1st 2021 the Gambling Act of 1964 is expected to be changed, making it possible for casinos to obtain a license from the Dutch Gaming Authority, making it possible to start advertising and offer casinos directly to the Dutch people.

In conclusion this means until January 1st, it’s illegal to offer the Dutch residents the option to gamble online, but they are legally allowed to do so.

United Kingdom

The UK market is one of the most regulated markets in the world, this makes it one of the safest for the online casino gamblers. All websites and casinos offering gambling to the UK residents have to have a UKGC license or be listed on a UK Whitelisted Gambling Jurisdiction. This means no foreign casinos are allowed to offer or advertise their services to a resident of the UK without having a UKGC license.

All UK residents being 18 years or older are legally allowed to gamble online as long as it is on a whitelisted or UKGC licensed casino.

Gambling Tax by country

Canada

In Canada your winnings are not subject to tax, unless your income stemming from gambling is considered a constant source of income. This means if you gamble now and then, and withdraw some winnings, you do not have to pay taxes.

If you gamble as a professional living, and therefore have a constant source of income coming from gambling you could be subject to tax. This means you should fill out the needed tax forms with as much information as possible. This also means you should declare your winnings and losses in the tax forms.

Denmark

All Danish players are exempt from tax on their winnings if the casino is licensed by Spillemyndigheden. This means if the casino is not licensed by Spillemyndigheden, the player must pay taxes for all winnings since all winnings coming from casinos without a Danish license are seen as a personal income.

Finland

All Finnish players are exempt from tax on their winnings if the gambling made is any type of legal, state-controlled gambling. They are also exempt from tax if the winnings are made on a casino/website operating from an European Economic Area country.

If the gambling are made on a casino/website operating from a non European Economic Area Country or if the “Act on Tax Lottery prizes” does not apply, the winnings are subject to tax. 

Germany

Currently the German players are exempt from paying taxes of their winnings. This comes from the state-owned casinos having to pay really high tax rates.

Norway

In general you are exempt from paying taxes from your winnings in Norway if the winnings don't surpass the amount of 10.000 NOK. This applies even if you receive more than 10.000 NOK winnings in total from several gambling activities within a year. This also applies for most winnings from foreign gambling companies.

Winnings from legal Norwegian gambling activities are generally fully exempt from tax. This could be winnings from:

  • Norsk Tipping and Norsk Rikstoto’s gambling activites
  • Private operators with a licence to provide lotteries.
  • Public official competitions arranged by the media.

All winnings from gambling activities in another EEA (European Economic Area) state that are comparable to gambling activities legally provided in Norway, and that are subject to public supervision and regulation, are also fully exempt from tax.

Sweden

All Swedish players are exempt from tax on their winnings if the casino is licensed by the Swedish Gaming Authority or are won on a live casino based in Sweden. This means if the casino is not licensed by SGA or based in Sweden, you have to pay tax on your winnings.

Winnings that are taxed are taxed as personal income, so the percentage varies depending on each player.

The Netherlands

All Dutch residents have to pay gambling tax on lottery winnings, but they do not have to pay taxes on online games offered within the EU. If you win money outside of the EU, you also have to pay gambling taxes. If you already paid a gambling tax abroad, then it’s not necessary to pay again in the Netherlands.

United Kingdom

In the UK the residents are exempt from paying gambling tax on any winnings. This is due to all gambling companies with a valid UKGC license being taxed 15% of their gross profit.

*Disclaimer: BonusCatalog.com is not responsible for incorrect info regarding laws and taxes regarding the different countries. The laws and tax rates may have changed since this guide was made. BonusCatalog.com recommends all players to closely read the laws of the country they reside in.*

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