Do I have to pay taxes for wins made in Online Casino?
Category: Beginners Guides.
The answer to the title question is: There is no need to pay taxes if the profit comes from an online casino in the European Economic Area. Most online casinos are registered in Malta, a small island in Europe. In other words, if you win from an online casino registered in Malta, the winnings are just as tax-free as the winnings from the lottery.
Here’s a small list of 100% secure tax-free online casinos.
- Bonus: 600 €
- Bonus: 1000 €
Terms and Conditions apply | Play responsibly | GamCare.org.uk | BML Group Ltd MGA/CRP/108/2004
- Bonus: 1200 €
Terms and Conditions apply | Play responsibly | GamCare.org.uk | MGA/CRP/217/2012
Excerpts from the Taxpayer’s own website:
The exemption under section 85 of the Income Tax Act requires that the lottery be deemed to have been held in a State belonging to the European Economic Area. The implementation of lotteries is a concept derived from lottery law. The execution of a lottery is the offer, sale and other concrete actions and arrangements made by the organizer to create lotteries and games to create opportunities for participation. In order for a poker game to be considered to have been performed in a European Economic Area country, the implementation of the game must have taken place there.
Add to this the fact that, again, profits from outside the European Economic Area are subject to tax. The Maltese license is a little too expensive for some smaller operators, so they may have a Game License, no matter where. For example, in Costa Rica or Curacao. The fact that an online casino has a Finnish name or that its websites have been translated into Finnish does not mean that the online casino in question is tax-free. For example, a casino called Suomivegas.com has a name that looks very Finnish, but they have a Gaming License in Curacao, which is not in the European Economic Area, so the winnings from that site should be taxed in Finland!
You can read more about taxes and their use in the Kela blog.