But that begs the question: just how much are casinos being taxed? Setting aside the licensing fees (another way that governments make money from casinos), let’s look at the various tax rates for casinos around the world and see how much they have to pay out on their winnings.
Top 10 Countries with the Highest Gambling Tax Rate
1. France
Gambling Tax Rate: Up To 83.5%
In 2017, the Organization for Economic Cooperation and Development (OECD) reported that France has the highest ratios of tax revenues (46.2%) versus GDP, making it the most taxed country. That’s why it’s no surprise that they are also the top spot for taxing casino revenues.
The French government will take a whopping 37.7% of horse racing wins, 44.5% of sports betting profits and 52.2% from online sportsbooks. Land-based casinos get hit the hardest as they can be taxed up to 83.5%. These taxes make it much harder to open and run a successful gaming business in the country.
2. Germany
Gambling Tax Rate: Up To 80%
Running a land-based casino – or any type of gaming venue – in Germany faces similar headwinds as in France. If you’re looking to open a land-based casino, expect to pay anywhere from 20%-80% of total gaming revenues. That’s a big burden. Even sports are hit hard as they have a 5% turnover tax, which means they’ll pay 5% on the total amount of bets received, not just the profits. Those costs are often passed down to the customer, which leads to uncompetitive sports betting lines compared to other places in the world.
3. Luxembourg
Gambling Tax Rate: Up To 80%
Luxembourg is one of the smallest countries in Europe in terms of population but one of the highest in casino taxes. They’ll charge land-based casinos anywhere from 10%-80% on their gaming revenue while sports betting and lotteries get hit at 15%.