The sudden rapid-fire legalization of iGaming across many countries as of late has many gambling operators wondering what the revenue prospects are. Casino betting app and website legalizations as of late have spread for the most part to additional European countries and Latin America with slow headway being made in USA and Canada. More Asian countries are cautiously mulling over the idea of legalization as well as Dubai is the lone country in the Middle East about to legalize it for foreign operators.
Today, we are going to take a look at the territories in these regions where private iGaming has been legalized, how online casinos are taxed, new developments in regulation, the biggest markets currently available for iGaming profits, and some high-profile recent investments in the online gambling world.
Global tax rates for online casinos
We will now review the territories where iGaming is legal and the applicable taxes. Before we do, however, let’s take a look at the taxation factors that iGaming operators are subject to.
- Gross gaming revenue (GGR): this is the way taxes are generally calculated in the majority of jurisdictions. It’s calculated as the total money wagered in that casino minus the winnings paid to the players. These generally range from about 5% and go all the way up to near 60%.
- Tiered tax rates: a number of countries charge taxes in progressive fashion based on the revenue thresholds.
- Stakes-based: a certain amount is instead charged to every dollar wagered.
Europe
These are the nations in which private entities are allowed to offer games of chance in Europe. There are other countries where online gambling is possible but there is a state monopoly. In other areas, gambling can only take place at a brick-and-mortar casino.
| Country | Online Casino Tax Rate |
| Germany | 5.3% of stakes |
| Netherlands | 30.5% of GGR (rising to 37.8% by 2026) |
| France | 54.9% of GGR (soon to be 59.3%), additional social security levy will rise from 10.6 to 15% |
| Italy | 25% of GGR (soon to be 25.5%) |
| Spain | 20% of GGR |
| United Kingdom | 21% of GGR |
| Romania | 21% of GGR |
| Bulgaria | 20% of GGR |
| Czechia | 30% of GGR |
| Ukraine | 18% of GGR |
| Georgia | 5% of GGR |
| Armenia | 10% of GGR |
| Sweden | 22% of GGR |
| Denmark | 28% of GGR |
North America
Things are much more conservative in the USA and Canada, where in both cases relevant laws are established by the individual state/province. In the latter, there is no iGaming revenue to speak of locally as iGaming has only been legalized in a couple of provinces. Nevertheless, only the state can provide those games of chance legally to them.
In the United States, there is plenty of money to be made however in these jurisdictions:
| State | Online Casino Tax Rate |
| Connecticut | 18% of GGR |
| Delaware | 51% of GGR, 8.7% corporate tax |
| New Jersey | 15% of GGR |
| West Virginia | 15% of GGR |
| Michigan | 20-28% of GGR |
| Pennsylvania | 16% of GGR on table games, 54% on online slots |
| Rhode Island | 51% of GGR |
Latin America
Since about 2017, countries have been opening up the opportunity for online gambling. The biggest recent prizes have been Argentina and Brazil, the former not completely legalized, however, as it’s determined on a province basis.
| Country | Online Casino Tax Rate |
| Colombia | 15-17% of GGR |
| Brazil | 12% of GGR, 15% corporate income tax |
| Mexico | 30% of GGR |
| Argentina | Varies by province (average 10-25% of GGR) |
| Peru | 12% of GGR |
Asia
Here, the opportunities are very limited, but citizens of East Asia in particular are well-known for happily playing in offshore online casinos. The biggest market there is the Philippines. Singapore and Mongolia meanwhile feature buzzing online gambling environments. A huge market however exists in India as well. Soon, Dubai has announced that iGaming will be legal there too, despite having a harsh history of punishing offenders. China of course allows online gambling in its Macau district.
| Country | Online Casino Tax Rate |
| Philippines | 19.2% of GGR |
| Singapore | 12-20% |
| Mongolia | 40% of GGR |
| India | 28% GST |
| Macau | 35% of GGR |
The world’s largest iGaming markets
There has been a boisterous rise in iGaming markets in general, due in large part to governments opening up, technological advancements in the spectrum of games and betting offered, and growing internet availability. Here are the largest iGaming markets to profit off of at this time.
- United Kingdom, $12.48 billion: there is a longstanding history of betting and protection of consumers is thoroughly established here.
- United States, $10.96 billion: the 7 states, as small as the portion of the country that they occupy is, still offer massive profits. Almost half of US states have some form of casino gambling. Regardless, the country is projected to dominate online gambling in the future.
- Brazil, $10 billion
- Australia, $6.55 billion: though iGaming is banned in Australia, they play offshore.
- Italy, $4.51 billion
- France, $3.83 billion
- Germany, $3.65 billion
- Canada, $2.55 billion, though there’s a state monopoly for those playing legally in the country.
- Sweden, $2.10 billion
- Spain, $1.60 billion
New regulation changes
On the whole, the most stringent regulations and the most iGaming competition is noted in Europe, with Latin America being the easiest region for new entrants by virtue of its limited regulation and operator competition. In USA, only 7 states have legalized it.
Europe continues to tighten regulations on iGaming, as it certainly has the most abundant sets of laws that operators are required to follow. For instance, since last year, 2024, the Gambling Act Review in UK now focuses on stricter age verification, affordability checks, and VIP schemes in addition to increased transparency in advertising.
The EU requires high-level transparency from gambling operators in the GDPR and is standardizing iGaming regulations among member states. Just in 2021, Germany legalized iGaming at the federal level and the Netherlands joined it.
The UAE established the General Commercial Gaming Regulatory Authority in 2021 and international operators can now apply for licenses. On top of that, Japan has recently approved two integrated resorts and is now accelerating plans to control online casinos this year.
Crypto-friendliness
A common situation in many countries, seeing as crypto is foreign territory to many lawmakers, is that there are no laws regarding crypto at all. Therefore, crypto transactions flow in large numbers. There is a lot of regulatory ambiguity in USA in this regard as some states allow it while others feature vague regulations. However, in Australia, the ACMA introduced bans on credit card gambling and cryptocurrency in online gambling in June 2014.
Other countries where crypto casinos and digital currency transactions are banned include:
- Sweden
- France
- India, in certain states
- Turkey
High-profile investments
As expected, there are serious amounts of investments flying into iGaming markets all over the world. Here are some of note:
- Brazil: In mid-2024, Flutter Entertainment, owner of brands like Paddy Power and Betfair, acquired a 56% stake in NSX Group, the owner of Betnacional for $350 million.
- Serbia: In September 2023, Gaming Innovation Group’s platform went live with Betsson’s Rizk brand.
- USA: Boyd Interactive acquired Resorts Digital, the online gaming segment of Atlantic City’s Resorts Casino.
- Saudi Arabia: though iGaming is illegal in their home country itself, in 2023, Saudi Arabia’s Public Investment Fund acquired American mobile game developer Scopely for $4.9 billion and plans to acquire Niantic’s gaming division for $3.5 billion.
- In December 2024, Abu Dhabi announced the launch of Beam Ventures, a $150 million venture fund focusing on early-stage startups specializing in web3 gaming and AI. This was after Ixia Capital venture capital fund was launched in mid-2024 with the idea of launching over 25 startups, many of which will operate in iGaming in the UAE.
