Taxes and regulations kill the odds

[paxmao]

Taxes make a huge impact on betting earnings in certain countries while other are relatively free of that burden. Many central European countries such as Germany, France, Luxembourg, Denmark, etc... charge directly to the casinos and other charge to the earnings. For example Denmark will get nearly 70% of the Casino earnings.

https://www.taxback.com/blog/the-ultimate-guide-to-gambling-tax-rates-around-the-world

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax! The message cannot be more clear: if you want money, go work! You could argue that Italy - tax free -  is also sending a message: go gamble, there is not much more to do  On-line is also different per country and some are tax-free if it is online and other make no difference.

I researched this because I hear that a professional poker player from Spain was about to move to Andorra, which is something that may people do when they earn big.

[1715529383]

1715529383

[Yogee]

Is there even a bookie still operating in Germany? hehe. Sports betting is probably popular with Bundesliga and other top sports there but I do not know how they will survive with that 90% tax.

I researched this because I hear that a professional poker player from Spain was about to move to Andorra, which is something that may people do when they earn big.

I hope he settles any tax due in Spain so he won't be bothered by evasion cases before moving to another country.

[Slow death]

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax!

that's true? so how do casino owners keep profits if they have to pay this high tax? how will casino owners be able to pay workers wages or is this tax amount only applied to online casinos? because a real world casino needs to pay water bill, electricity bill and workers wages and also needs to have money to maintain the infrastructure, if the real world casino pays 90% in taxes they go bankrupt in the same month

[Sled]

Even 50% tax from earning isn't acceptable for me, how about 70%, 90%, ohh...that it looks like that we got hack by these people. The government is milking them too much, it wasn't fair. I don't think their reason is to stop gambling as they allow it in the first place. Or they just wanted that gambler to never think about winning or they have to pay for it. And this urges them to move out from their beloved country for that sake.

How I wish they will think it and don't let their people, gamblers to suffer such a thing, in fact, that was their money anyway.

[Baofeng]

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax!

that's true? so how do casino owners keep profits if they have to pay this high tax? how will casino owners be able to pay workers wages or is this tax amount only applied to online casinos? because a real world casino needs to pay water bill, electricity bill and workers wages and also needs to have money to maintain the infrastructure, if the real world casino pays 90% in taxes they go bankrupt in the same month

Perhaps this casino's are still making profits from online gamblers and maybe there are still a lot of gambling addicts in Germany that's why this casinos continue to exist and willing to pay that tax because they still make huge profits?

Because business wise it's not wise to continue if you are going to suffer huge losses in the beginning. But they are smart, they know that there are individuals they can still trap and they are not going to go bankrupt the soonest.

[Lanatsa]

Even 50% tax from earning isn't acceptable for me, how about 70%, 90%, ohh...that it looks like that we got hack by these people. The government is milking them too much, it wasn't fair. I don't think their reason is to stop gambling as they allow it in the first place. Or they just wanted that gambler to never think about winning or they have to pay for it. And this urges them to move out from their beloved country for that sake.

How I wish they will think it and don't let their people, gamblers to suffer such a thing, in fact, that was their money anyway.

Government doesn't directly tell those business owners that gambling should be banned but instead they do tend to choke them into their necks on imposing 70-90% taxation? How the hell they would survive on that? I don't know if there are gambling business into those countries do still operational
as of this moment despite of those high taxes.

Actions like moving into other country or places just because of that particular reason isn't something new on where there are people
who are really eager on doing that.

[wheelz1200]

Taxes make a huge impact on betting earnings in certain countries while other are relatively free of that burden. Many central European countries such as Germany, France, Luxembourg, Denmark, etc... charge directly to the casinos and other charge to the earnings. For example Denmark will get nearly 70% of the Casino earnings.

https://www.taxback.com/blog/the-ultimate-guide-to-gambling-tax-rates-around-the-world

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax! The message cannot be more clear: if you want money, go work! You could argue that Italy - tax free -  is also sending a message: go gamble, there is not much more to do  On-line is also different per country and some are tax-free if it is online and other make no difference.

I researched this because I hear that a professional poker player from Spain was about to move to Andorra, which is something that may people do when they earn big.

It's a fine linebut yeah taxes kill the worth of gbling a lot.  Tax too much and people will just skirt the system, there best bet is to keep taxes low on gambling if they want to keep everything legit.

[Maslate]

Lol, 90% tax. That's the opposite in some countries I guess as they'll only get a small percentage of the total income while Germany charges 90%, that only means one thing, it's an indirect way to impose a gambling ban, operators will not survive with that kind of tax rate.

[alegotardo]

I've said it once and I'll say it again...
I'm in favor of high rates for everything that is bad for the physical, mental and financial health of the population.
I think it's that fair that governments impose high rates as long as these taxes are duly reverted to the population.
But look at other countries that prefer to simply ban gambling altogether, there nobody can have fun and the government doesn't collect a lot of money from taxes, that's cruel.

[Darker45]

What is even more sad is that in many countries gambling taxes are imposed not on the winnings but on the bets themselves. The article mentions Kenya and Ireland as examples.

This is like double house edge. In a casino, the house itself has an advantage either in the game or in the payout if you prefer the odds to be 50:50. But even before winning, your bet is already reduced to the taxes. That sounds a little too much to me.

Isn't fair not to tax the loser and tax only the winner?

[cabron]

Destination Spain. I use to think of Puerto Rico which Logan even considered his choice.

Even 50% tax from earning isn't acceptable for me, how about 70%, 90%, ohh...that it looks like that we got hack by these people. The government is milking them too much, it wasn't fair. I don't think their reason is to stop gambling as they allow it in the first place. Or they just wanted that gambler to never think about winning or they have to pay for it. And this urges them to move out from their beloved country for that sake.

How I wish they will think it and don't let their people, gamblers to suffer such a thing, in fact, that was their money anyway.

Government doesn't directly tell those business owners that gambling should be banned but instead they do tend to choke them into their necks on imposing 70-90% taxation? How the hell they would survive on that? I don't know if there are gambling business into those countries do still operational
as of this moment despite of those high taxes.

Actions like moving into other country or places just because of that particular reason isn't something new on where there are people
who are really eager on doing that.

They are only choking the businesses and gambling companies if they are not making money out of it. Right now they are even making more regulations to Robinhood options because they are also not making money out of it.

Checking out the biggest Lottery where citizens spend thousands every year of it not knowing thier chances of winning but because the government is making money out of it, they just let it be.

[molsewid]

What is even more sad is that in many countries gambling taxes are imposed not on the winnings but on the bets themselves. The article mentions Kenya and Ireland as examples.

This is like double house edge. In a casino, the house itself has an advantage either in the game or in the payout if you prefer the odds to be 50:50. But even before winning, your bet is already reduced to the taxes. That sounds a little too much to me.

Isn't fair not to tax the loser and tax only the winner?

Most probably I think it's a must to impose taxes on gambling businesses but it would be fair enough if taxing only the winner and not the loser but as stated in the article like there are many countries like Ireland and Kenya that impose taxes on the bookies, which on other hand it is what they have in their laws and gambler must follow this. But they are already collecting money from a gambler even without assurance of winning and for that case they are collecting a little much from the gambler, and the gambler will stay loser as it seems even if they win.

[Wexnident]

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax! The message cannot be more clear: if you want money, go work!

Poor casinos lmao. Why would they even bother registering for one when it basically looks like they're earning money for someone else. I first thought they were taxing the player's winning but it doesn't seem to be like that, from the article itself it says that Germany is one of the countries that has no taxes on winnings earned from gambling. It's like a haven for players but hell for casino owners.

I've said it once and I'll say it again...
I'm in favor of high rates for everything that is bad for the physical, mental and financial health of the population.
I think it's that fair that governments impose high rates as long as these taxes are duly reverted to the population.
But look at other countries that prefer to simply ban gambling altogether, there nobody can have fun and the government doesn't collect a lot of money from taxes, that's cruel.

High rates is fine and all but borderline unfair is not. It pretty much kills the business after all. I agree with having an equilibrium of casinos being allowed and them being taxed, but if it was like this, they'd just ultimately leave or do an illegal one or a private one (which has its own taxation rules according to the article).

[Poker Player]

-snip

Congratulations! You have discovered that regulations and taxes kill business!

That's why crypto casinos are so attractive. Most of them either don't even have a license or if they do it's from some tax haven where they pay hardly any taxes, so they can give better odds to customers. By giving better odds, even for casino games, people usually have a better return in the short term (and lose less in the long term).

Regarding poker specifically, what happened about ten years ago is that apart from regulations and taxes in most European countries, the market was fragmented. Previously a poker player would enter pokerstars (to give an example) and play against players from all over the world. From about 2012 onwards a poker player from France could only play against players from France. So there was a migration of poker players who earned the most money from countries with strict regulations and high taxes to countries that still allowed to play with the rest of the world and with low taxes.

[swogerino]

Taxes make a huge impact on betting earnings in certain countries while other are relatively free of that burden. Many central European countries such as Germany, France, Luxembourg, Denmark, etc... charge directly to the casinos and other charge to the earnings. For example Denmark will get nearly 70% of the Casino earnings.

https://www.taxback.com/blog/the-ultimate-guide-to-gambling-tax-rates-around-the-world

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax! The message cannot be more clear: if you want money, go work! You could argue that Italy - tax free -  is also sending a message: go gamble, there is not much more to do  On-line is also different per country and some are tax-free if it is online and other make no difference.

I researched this because I hear that a professional poker player from Spain was about to move to Andorra, which is something that may people do when they earn big.

Some countries like Germany are built on their national culture that work is primary to them,Germans are well known for their really good products like Mercedes-Benz and other cars but not only car industries but they excel in many others.They see gambling as a menace to this culture and they will do the maximum in their power to limit gambling as much as possible.Other countries are less stringent when it comes to gambling,they just tax it to a normal amount of money which they see as a good big source of income to their government.

In the end this boils down to different point of views,however countries like Germany compared to others in Europe are far ahead and maybe this says a lot as why they limit the gambling to the maximum extent possible.They are the biggest economy of Europe as of right now.

[Fesatmas]

What about gambling casino sponsorship in Germany? I don't think the extra income is based on the results of gamblers losing their money, in Germany itself big stakes are something not to be missed. just 10% is still not enough while the 9-% casino tax is a huge tax action. Given the rules for setting up a casino, it's better to accept the policy than nothing. So Germany has the opportunity to earn more with crypto casinos providing Bitcoin, Ethereum as the most mandatory coin to be included as a crypto that should not be missed. The rest they can add any crypto according to the taste of the gamblers. That way 10% of crypto bets will pay off more when facing the bull market.

[romero121]

As you can read, Germany is the most astringent jurisdiction, with 90% of casino earning being paid as tax!

that's true? so how do casino owners keep profits if they have to pay this high tax? how will casino owners be able to pay workers wages or is this tax amount only applied to online casinos? because a real world casino needs to pay water bill, electricity bill and workers wages and also needs to have money to maintain the infrastructure, if the real world casino pays 90% in taxes they go bankrupt in the same month

Maybe that's the reason most of the offline casino business owners are making arrangements for online gambling access. If the online gambling business is registered on some other country, then it'll bring good revenue.

Many countries have policies and law against gambling, however there is always ways through which people get access to it. In my country gambling have got restrictions, but platforms registered on other countries promote their services on our regional broadcast. In some State lottery is allowed and for that the government takes around 40% as tax from the winner.

[harizen]

I think we are just looking at the single side. I don't have any idea but try to research how much gambling operators in those countries profit overall since their inception prior to the new tax rate. In Europe, gambling is the most overwhelmed industries and even with how much tax is applied to those, they are still bagging some big profits in return as no casinos are losing in that line of business.

Just come to think of it, if those taxes and regulations are killing the odds, why there are still new operators joining the game and willing to spend big on the operations? Because the bottom line is, it's profitable!

[michellee]

It seems the governments want to limit the casino revenue by implementing big taxes from them. It could make the medium and big casinos move their business to another country that does not have to pay high taxes. I wonder how those casinos can survive while paying the taxes. Maybe we will see many underground casinos start running because some casinos owners do not want to pay high taxes. And that is the only thing that the casino's owner can do besides moving to the other places that do not have high taxes.

[goinmerry]

It seems the governments want to limit the casino revenue by implementing big taxes from them. It could make the medium and big casinos move their business to another country that does not have to pay high taxes. I wonder how those casinos can survive while paying the taxes. Maybe we will see many underground casinos start running because some casinos owners do not want to pay high taxes. And that is the only thing that the casino's owner can do besides moving to the other places that do not have high taxes.

There's no such thing as the government wanting to limit casino revenues even in any country. It's just that gambling seems to be the most profitable industry they can look at to contribute more to the government's funding now that we are in the post-pandemic period.

I don't see anything wrong with that as long as there's a good reason to implement it like for example, gambling is really kicking up in these countries. High tax will also limit those who are trying to establish unlicensed gambling operations. There's also a good advantage of implementing high tax but it should be used properly by the government or else, anything is useless.