Gaming tax is tax that you pay about the profits you have made for games of chance. Gambling are playing where you do not affect the outcome of the game. Gaming tax has been around since 1961, but since then a lot has changed in this world.
The most important change is the rise and enormous popularity of the online casinos. And even though these are now still illegal in the Netherlands, with the new remote Gambling Act, this will soon come to an end. But how do you pay gambling tax on profits that you made in the online casino?
The new law
The new distance Gambling law was already approved in February 2019, but so far it has not yet been officially discussed. That is because the government and the Gaming Authority want everything to be arranged to the last detail and, in particular, want to protect players against manipulation and gambling addiction.
The end of this period seems to be in sight, because the Gaming Authority itself indicates that it wants to accept applications for permits from April 2021. From that moment on, offering a participation in online casino games in the Netherlands - under the strictly watchful eye of the Gaming Authority - is permitted.
Do you like to put your happiness to the test and take a gamble online At a casino? Then you need to know what to expect from the gambling tax.
What is gambling tax?
Gaming tax is tax that you pay if you have participated in a game of chance and have made a profit. As indicated, they are playing where you cannot influence the outcome yourself. A quiz is not a game of chance, because you need knowledge for that.
Online casino games are games of chance, because knowledge is not necessary and you cannot influence the outcome. You pay the gambling tax on the profit. That is the difference between what you have used and what you have won. Currently, the gambling tax is 30.1 percent of the total amount won.
Wonings at the online casino
If you have won the lottery, it is not that difficult to calculate what you have to pay in tax. A American provider even makes the declaration for you and you don't have to do anything for that.
If you are going to play at an online casino, two problems will present. First of all, these are often companies that are not located in the Netherlands and not even in the European Union. Secondly, at an online casino you usually do not win a large amount in one go, but you win a number of smaller amounts.
It is much more difficult to keep track of what your total profits have been, because you also have in between money. For these two reasons, the responsibility for submitting the gambling tax on profits at the online casino with the player himself is.
The casinos that we at Legal American Casino offering all have a license in the Netherlands.
Submit every month
The Tax and Customs Administration assumes that you, as an online casino player, calculate every month what the difference is between what you have deposited and what you have won. If it appears that you have made a profit, then that is the amount that you have to pay tax.
You do that every month. There is a gambling tax form that you fill in and submit to the tax authorities. It must be said here that you only pay tax if you have had the profits paid. If these are still in your wallet at the casino, you will not pay any tax on it yet.
If you win an interesting amount and you want to pay it, then that is the time to fill in and pay for the gambling tax form.
If you have already studied the gambling tax, then you know that there is an exemption over most games at prices under $ 449. Small prices are therefore generally not taxed.
With online games of chance this exemption does not exist and you simply pay taxes from the moment you have made a profit. That is because most profits at online casinos are small and lower than $ 449.
In addition, you can then decide to have less than $ 449 paid out every time and never pay taxes. It is therefore not surprising that this exemption does not exist at online casinos.
Protection against gambling addiction
The new distance Gambling and the gambling tax for online games are both set up in such a way that playing at an online casino remains fun. It is the purpose of the Gaming authority And the American government to offer American players a safe, reliable and honest environment where everyone can take a gamble.
That way it remains fun and exciting to occasionally participate in a game, but it will not be addiction. If we let the online casino world in the Netherlands, then we do that with our requirements and we ensure that everyone can play safely and protected.