Tax-free winnings

Tax-free winnings
All winnings at online casinos that have a license in Europe are tax free. That’s why it’s important to choose an online casino that is licensed in places like Malta or Gibraltar so that you have no problems keeping your entire winnings upon withdrawal. All the casinos that we list under casino reviews and casinos in our Top 5 Casino list are active in the EU/EEA and all profits are tax free. However, it is important to note that this doesn’t apply to other incomes that you may have online, just any which fall under the Lottery Act. Want to win without having to pay up? You should always carefully check where each casino has its license!

Online casino that offers tax-free profits

All taxes to non-EU

If you play at a casino that doesn’t belong to the EU/EEA, it is not tax free if you win meaning that the player must report all game profits in their tax return. If you do not report those earnings, you commit a tax evasion offence which is a crime under many laws. There have been a number of judgements against poker players from certain areas who have played on poker sites outside the EU/EEA and have been forced to pay taxes on their winnings. Fortunately, most casino sites are established in Malta, or other EU countries, so gains made on these sites are tax free.

TSkatteverket on gambling taxes

The following is an extract from the Tax Agency’s website on betting taxes:

The starting point is always that a profit from casino and poker games online should be taxed in Sweden. If you have played on a foreign site, gains in excess of 100 Swedish kronor are taxed in Sweden. At the income tax return, take up the gains as investment income. You must do this even if you have not received any scrutiny.

It is the actual gain that is taxable. Casino and poker games organized for the general public is lotteries under the lottery law. Each pot is in principle its own lottery and every pot won is taxable at their gross value, ie. not even the bet that the winner has done in the pot can be deducted. Also financial perks in the form of sponsorship and so-called Rake-back is taxable. The rake-back refers to the bonus a player may return on invested capital when he was recruiting new players to a gaming Web site.

When you play casino or poker, you should not be taxed on the profits you make from gambling establishments that are within the EU / EEA. This is because the lotteries held in Sweden are exempt. In the so-called Lindman ruling, the ECJ held that European law prevents EU countries to tax income on gains in other EU countries if the same earnings would be tax free in their own country. Gains of casino and poker games held in the EU / EEA area are as a result not taxed.

Excerpts from the Tax Agency’s website

”After a ruling, the ECJ held that European law prevents EU countries to tax income on gains in other EU countries if the same earnings would be tax free in their own country. Therefore, gains in poker / casino / betting organized within the EU / EEA area are not taxed in Sweden.”

Tax Questions and Answers