29 Feb

Is It True: No Taxes for Players at Online Casinos in Latvia

13:38 August 11, 2023 0 245
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Latvia, a small Baltic country, is a young country in the world of online casinos. Even though land-based casinos were legalized in 1998, online casinos in Latvia got their legal license in 2003. However, not until 2006 were all regulations enforced. This article won’t discuss the history behind casinos in Latvia, but rather its taxes policy, which is quite interesting.

Content:

    Casino Winnings Are Tax-Free at Online Casinos in Latvia

    Tax regulations for the online casino Latvija are indeed an interesting thing. Taxes don’t burden casino winnings. Well, in most cases. One might ask themselves where the catch is. Any Latvian casino player isn’t obliged to pay taxes for casino winnings if they don’t exceed €3,000 in their earnings per year.

    So this means every player can win under €3,000 per year, and their winning is tax-free, i.e., they can keep the whole amount by themselves. How lucky they are. 

    What Happens With Winnings over €3,000

    If players win over €3,000 in one year, the winning amount is added to their taxable income. The percentage of how much you should pay depends on your personal annual income.

    Yearly earnings up to €20,004 have a rate of 20%. Latvians who earn between €20,005 and €78,100 yearly have a rate of 23%. Those who earn more than €78,100 have a rate of 31%. 

    So, if a Latvian wins more than €3,000 in one single year, all the casino winnings are added to the taxable income. Otherwise, a Latvian casino player keeps all the winnings untouched by taxes. Well, the amount of €3,000 isn’t for discarding. It’s still a nice amount. Nevertheless, that’s why the gambling Latvia has, is so popular.

    What About Taxes for Casino Providers in Latvia?

    The whole thing regarding taxes is completely different for casino providers in Latvia. According to the Lottery and Gambling Tax Laws, all casino providers in Latvia must pay taxes. The tax rate depends on the type of games they provide. It’s all stated in the Lottery and Gambling Tax.

    Regardless of the below-mentioned taxes, the tax rate is calculated monthly. This also means that every casino provider needs to pay taxes by the 15th of a month. 

    The Lottery Tax

    The lottery needs to pay 10% of its earnings. Those earnings include the revenue for the sold tickets and scratch cards.

    The Land-Based Casinos

    The stay for land-based casinos is a bit high. Every provider of card, dice, and roulette games must pay €28,080 per table, but it’s an annual tax. Also, every provider with slot machines or similar must pay €5,172 per machine in one year. 

    The Revenue Tax

    Taxes for games of chance by phone, sweepstakes, and betting have a tax rate of 15%.

    Online Gambling Tax

    Online Gambling has a tax rate of 10%. In comparison to land-based casinos, it’s not that much.

    Casino Taxes Into State’s Budget

    Of all tax money, only 75% goes to the state's budget, and the rest, 25%, goes to local governments whose governing area is gambling situated.

    There's no easier way to collect money for the state's budget than casino taxes. Even though those taxes may seem unfair to some, there are still rules about where it goes once it's collected. It's still considered the average tax rate in comparison to the tax rates of other European countries.

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