(Above) Malta, a group of islands in the central Mediterranean between Sicily and the North African coast (Pixabay).
27-Apr-22 – With so many of the world’s biggest gambling markets charging operators some 10-15 percent of their revenues in taxes, it’s no wonder many of them look to other countries that still have market access but with lower taxes.
Here are five countries considered low tax destinations for gambling operators globally:
Malta
If you’re looking for a $2 deposit casino, you’re obviously after a good deal! It’s the same with casino operators, too.
In a lot of cases, casino offer hunters from New Zealand might find your chosen site is based in Malta or has a Maltese Gaming Authority License.
Why is that? Well, the same reason you were looking for a $2 deposit – value for money.
This tiny European island nation has super low gambling taxes, a gorgeous Mediterranean climate to attract workers, and (most importantly) it is a member of the European Union (EU).
This means any casino certified here is allowed to serve customers across the majority of the EU. Easy!
Gibraltar
Gibraltar is another European island nation that offers low taxes and sunny weather for gambling companies.
Formerly, the territory’s status as part of the United Kingdom – but able to make their own laws in many cases – was a big draw, too.
The U.K. is one of the biggest single gambling markets in Europe, and their regulator is internationally respected. As many might know if you’ve ever been, though, U.K. taxes are high, and the weather isn’t great.
Gibraltar was, at one point, charging just one percent of the U.K.’s online gambling tax rate.
However, since Brexit, the situation here has changed quite a bit. Gibraltar is no longer part of the EU, and many of the biggest tech companies based here have upped sticks to Ireland.
The overseas territory voted in favor of staying in the EU but was forced to leave with the rest of the U.K. after the 2016 Brexit referendum. The final outlook for gambling companies is still uncertain.
Channel Islands
The Channel Islands have long been in a similar situation to Gibraltar. For a long while, the islands of Jersey, Alderney, and Guernsey were a top destination for online gambling operators.
The literal zero percent tax rate, replaced by a flat license fee that allows access to the U.K. market, was very attractive for operators. As was the proximity to both the U.K. and mainland Europe.
Brexit, plus years of media outrage that the islands were being used as tax havens for other dodgier businesses, has led to a decline in online gambling business in the Channel Islands, however.
Finland
There aren’t many land-based casinos in Finland. In fact, there are only two casinos, in the proper sense:
• Casino Helsinki, in the country’s capital city.
• Casino PAF in Mariehamn. This casino is pretty small, though, with only a dozen or so tables and slot machines.
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(Left) Action from a poker tournament in 2018 at Casino PAF in Mariehamn, a city located on the Åland Islands between Finland and Norway. Photo by Rob Watkins (Wikipedia). |
For these two casino operators, though, the deal is quite sweet. Finland demands an 8.5 percent flat tax rate on gross profits. Which, in the global scheme of things, is a very good rate indeed.
Monaco
The tiny principality wedged into a tiny strip of southern France does not tax their land-based casinos at all.
This law goes back to the 18th century when casinos and their rich patrons helped make Monaco one of the richest places in Europe. Today, though, setting up a land-based casino in the limited space available here would cost you a pretty penny. Online gambling is also illegal.
But if you do have a casino here – tax is not going to be a worry!