| Cyprus |
The practice of gambling and betting is regulated through local, specific and autonomous licensing, and only online betting is authorized and can be carried out on sporting and non-sporting events. Since the approval of the “Betting Law of 2012” (The Beting Law of 2012) licenses for interactive betting have been allocated where the charge depends on its duration and, in addition, a bank guarantee deposited in a financial entity based in Cyprus or in another European Union country. |
Under the licensing regime in force, online betting operators are subject to an effective tax of 13% on net revenues: 10% in favor of the central government, 2% for the Cypriot senior sports authority (Cyprus Sport Organization) and a additional 1% to finance responsible gambling initiatives by the regulatory authority. |
| Spain |
The exploitation of games of chance in Spain is subject to authorization by the supervisory body with competences assigned for its regulation: if the scope of marketing is national, the competent regulator is the Directorate-General for the Ordering of the game (DGOJ). If the scope is that of an Autonomous Community, competence is assigned to the corresponding autonomous administrative unit. Thus, online games with national coverage, contests and lotteries are a state competence. In the sphere of autonomous competences there are games in casinos, bingos, lotteries of an autonomous scope and other games of a traditional character. |
The tax regime in force for online gambling and betting is provided for in “Ley 13/2011, de 27 de mayo, de Regulación del Juego” (the Law of the Game) which regulates, in particular, the activity of gambling and betting at money when developed through electronic, computerized, telematic and interactive channels. Since its entry into force, the Gambling Law has provided for taxation in two areas: a tax on all online (state) gambling activities and a fee for the administrative management of those games. The tax rate differs according to the type of game, the lowest being 10% (random combinations) and the highest 25% (all other games). More recently, through Law 6/2018, of July 3, the Spanish government introduced relevant news in the gambling taxation system, significantly reducing the tax on all online gambling and betting, with tax rates of 25% to 20%, and setting all taxable bases on the operators' real profit. |
| Malta |
The first legislation on online gambling and betting in Malta was enacted in 2000 (Public Ordinance Lotto L.N. 34, 2000). In April 2004, after the reform and reevaluation of the initial legislation, the Remote Gaming Regulation (S.L. 438.04) was published, becoming the first EU member state to regulate remote gaming. The Republic of Malta has, since then, been an established and reference name in the online gambling and betting industry, with hundreds of companies operating from that territory, benefiting from an attractive tax rate on income from the exploitation activity (the lowest in Europe). The market is open to operators in the European Economic Area (EEA) and the sector represents around 10% of Malta's economy, with the Malta Authorized Gambling “tag” being an indication of reliability for those interested. |
Online operators, holders of licenses validated by MGA, pay tax at the rate of 5% on gross revenue, that is, on the difference between the stakes and the payments received, less the amounts paid in prizes. The scheme was updated with the approval of the “Gaming Act 2018” (Chapter 583 of the Laws of MaltaMGA - MALTA GAMING AUTHORITY. Gaming Tax Regulations 2018 - Gaming Act (Cap. 583). Department of Information, 2018. Available in: Available in: https://www.mga.org.mt/wp-content/uploads/Gaming-Tax-Regulations-2018-1.pdf . Access in:16 jan. 2019.
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| Portugal |
The regulation of online gambling is a significant milestone in the history of gambling in Portugal, marked with the approval of the Legal Regime for Online Gambling and Betting (RJO), by Decree-Law No. 66/2015, of 29 April, which placed Portugal alongside the vast majority of European countries, which, in the last decade, had already regulated their exploitation. The complementary legislation necessary for the implementation of the defined model was approved, namely the control, monitoring and inspection system, managed by the competent entity - the Games Regulation and Inspection Service (SRIJ). The first licenses were granted in 2016, making it possible to play online with the guarantee that the game is regulated, supervised and controlled. Accordingly, the Portuguese State was able to tax revenues that until now escaped it, as the amounts spent by portuguese players and bettors on (legal) platforms operating in other countries were not subject to any tax in Portugal. |
Online gambling and betting are taxed through a specific tax - the Special Online Gambling Tax (IEJO). In terms of subjective incidence, this tax falls on the exploiting entities that hold a license, being the objective tax base defined in the law according to the category of game or bet and taking into account the exploration model that underlies each one. The operating entities are only taxed in IEJO on income directly resulting from the exercise of the activity of exploiting online gambling, with no other tax being levied on these income. The IEJO's legal framework for taxation establishes, for games of chance, a rate between 15% and 30%, depending on gross revenue and, for sports betting, a rate between 8% and 16%, based on impact on the volume of bets. The revenue from the tax collected is applied in accordance with the stipulated in the RJO and, in particular, is intended to finance the development of the sports and tourism sectors. SRIJ itself and the Autonomous Regions, also benefit from IEJO revenues, as do other public entities, namely the Service for Intervention in Additive Behaviors and Dependencies (SICAD). |
| United Kingdom |
The issuance of licenses for the exploitation of online gambling was regulated through the Law on Licensing and Advertising of Gambling (Gambling Act, 2014) which came into force on 1 November 2014, which determined that remote gambling operators must have a license from the regulatory authority to accept players and to advertise their services in the United Kingdom, if the equipment or facilities are located in the territory. The scope of the subject of the new legal regulation, now includes all operators that provide online gambling services to customers physically located in the United Kingdom, whether they are resident or non-resident entities in the territory. |
License holders pay tax at a single (universal) rate of 15% on their profits, that is, on the difference between the stakes and payments received, less the amounts they pay in prizes. The scheme was implemented through the 2014 Finance Law for remote gaming (Finance Act, 2014). |
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Source: Portal Statista (2019), “Size of the online gambling market”
Source: SUALO - National Lottery Superintendence15
Source: H2 Gambling Capital and iGaming Business Magazine