How much tax do online casinos pay?

In the vast majority of countries around the world, the player who wins does not have to pay taxes on their winnings, but the same does not apply to casinos.

Tax calculated

In those countries where online gambling is legalized, a tax is almost always included for the casino.

In this article, we’ll go over what taxes online casinos need to pay around the world and how much tax offshore companies that offer their services in New Zealand pay to New Zealand.

How much tax do online casinos pay to New Zealand?

None actually in New Zealand since they are offshore casinos and becouse there is no law in NZ for theese kind of companies yet, however they do pay tax as a company in the country they are oprating in.

Most of the trusted online casinos have a base on Malta where corparate tax rate is 35%.

However there are companies that only pay 5% tax in Malta. These are foreign-owned Maltese companies.

This is becouse theese companies are entitled to a tax return at the end of the year that is about 30% which means that the company ends up paying only 5% in yearly taxes.

A similar arrangement in Curacao could allow an offshore company to pay even less corporate tax.

According to some of the network’s most reliable sites in the field, you can read about a set where the company only pays 2% in corporate tax.

This is also the reson the online casino market is exploading becouse they have more money left to invest in marketing.

There are exceptions to this as well though. Skycity casino which is a local casino launched a Malta licensed version of its casino, ie an offshore casino because it is not possible to create one if you run your company from New Zealand.

In the bargain, you happen to end up outside the law in NZ and thus do not have to pay taxes in the country like all other offshore casinos. But in 2019, Skycity received a bill of $40 million in taxes according to the NZ Herald for deliberately marketing its casino to New Zealand.

What is the tax for the local casinos available in New Zealand?

Gambling tax rate for New Zealand local casinos:

  • Casino duty – 4%
  • Problem gaming levy – 0.87% of casino wins
  • Gaming mahcine duty – 20 cent of gaming mahcne profits

Top 10 countries with lowest gambling tax

However, just because an online casino does not pay taxes in New Zealand at the moment does not mean that they do not pay taxes in other countries.

Online casinos offer their services to many countries at the same time and in order to do so, the company must pay the taxes that each country requires in order for them to run their business in the country.

Below we have put together a list of 10 countries where gambling taxes are at their lowest at the moment.

CountryTax rate
Russia0% gambling tax
Singapore5% gambling tax
Finland10% gambling tax
Belgium11% gambling tax
Argentina15% gambling tax
Portugal15% gambling tax
Kenya15% gambling tax
Sweden18% gambling tax
Spain20% gambling tax
Italy25% gambling tax

How much tax do I pay as a player on my winnings?

What makes casino winnings even more interesting is precisely that you as a player do not have to pay any tax on your winnings. In other words, you keep 100% of your profit.

This is true pretty much almost all over the world and New Zealand is no exception. Whether you play at local casinos or online casinos, your winnings are tax-free.