Other Countries That Levy Taxes on Mines Games Gambling Winnings
The US is hardly the only country to impose hefty taxes on gambling winnings. Its southern neighbor, Mexico, also enforces taxation on gamblers’ profits and so do several other countries on the other side of the pond.
The tax rates are significantly lower than those in the United States, at least in most cases.
1. France
France taxes casino winnings at a rate of 12% provided that they go over the €1,500 threshold. Gambling operators deduct the corresponding amounts on the spot. Gamblers who engage professionally in skill-based games like poker must report their earnings as non-commercial profits.
2. Spain
In Spain, gamblers must declare their gains but have the option to deduct their losses similarly to US players, up to the amount of their winnings. A 20% withholding tax applies to lottery winnings over €40,000, including lotteries organized by non-profit entities like the National Organization of Blind People and the Spanish Red Cross.
3. Norway
Norway taxes ‘accidental’ gambling winnings over NOK10,000 (US$1,006) at a rate of 27%. Exceptions are made for prizes won from lotteries organized by the state-owned Norsk Rikstoto and Norsk Tipping.
4. Mexico
In Mexico, both license holders and gamblers with permanent residency must pay income taxes on their earnings. Winning gamblers are subject to both federal (1%) and state taxes (from 4% to 6%). Licensed operators must withhold the taxes on the spot and pay them on behalf of gamblers. The federal rate applies to non-resident gamblers as well.
5. The Czech Republic
The Czech Republic has adopted the GGR tax model whereby the levies apply to the difference between the overall amounts wagered and the winnings paid out to successful gamblers. Lottery operators are subject to the highest tax rates.
- 35% of the GGR of lotteries
- 23% of the GGR of all other gambling games conducted in landbased and interactive casinos
- 19% corporate income tax
Czech players are also subject to taxation in certain cases under the provisions of the Income Tax Act № 586/1992 Coll. Residents who win more than Kč1 million (US$42,531) from raffles or lotteries must pay a 15% personal income tax.
The same tax rate applies annually to profits from other types of gambling but only on condition the difference between the overall winnings and the wagers made is greater than Kč1 million.
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