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Tax revenue from gambling

Tax Revenue from Gambling

Tax revenue by gambling: The Malaysia state also benefits from the gambling passion of the Malaysians. Several billion euros in taxes are incurred on regulated online gambling casino every year. We take a look at the types of taxes collected from different types of gambling and how much tax is collected. We also take a closer look at the use of government revenue.

What types of taxes are there in the gambling industry?

Tax revenue from gambling is a state matter, so gambling laws can vary from state to state. Depending on the type of gambling, the type of tax revenue is also different. There is a race betting and lottery tax, as well as an amusement tax.

Tax revenue by gambling

With the race betting and lottery tax, the state taxes stakes from horse betting, sports betting, and lotteries. All bets are taxed at 5%, domestic lottery ticket prices at 20%, and international lottery tickets at 25%. The respective federal state is entitled to the tax revenue. The amusement tax taxes gaming machines and slot machines. The subject of the tax is the game turnover, which is taxed at 10 to 13% depending on the federal state. This income, in turn, goes to the communities.

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There is also a casino tax. This is paid to the Treasury by the state casinos and casinos. In addition, as with any company, there are trade taxes and sales tax.

Amount of tax revenue from gambling

In 2019, the state took in around 1.5 billion in lottery taxes and almost 500 million in taxes from horse and sports betting. There are also casino taxes of 34 million. However, that’s just the revenue from state-regulated gambling. With the entry into force of the new State Treaty on Gaming in July 2021, tax revenue from games of chance can again be increased enormously. Because online casinos and private gambling providers are now also state-regulated by the GlüStV. The new sources of income and the increasing number of users of online casinos mean that high tax growth can be expected in the future.

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Tax revenue by gambling

Use of tax revenue

The state makes good money from gambling. But what is the tax revenue from gambling used for? Where exactly the tax money goes cannot be traced, since the money ends up in the general tax pot. In general, tax money is used for social, cultural, or ecological measures and projects. Among other things, for the infrastructure, schools, day-care centers or museums and theaters. The exact distribution of the money varies from state to state.

However, the introduction of the Finnish model would also be advisable in Malaysia. In Finland, annual tax revenues from gambling are used to invest in addiction prevention measures. This is to curb gambling addiction.

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