The digital transformation of the gambling industry, coupled with evolving regulatory frameworks, has created a complex and dynamic environment for both operators and players. For the latter, the key consideration beyond the thrill of the wager is the portion of their winnings they can legally retain.
UK,
Belgium*,
France*,
Germany*,
Austria,
Denmark,
Sweden,
Finland
Spain,
Poland,
Hungary,
Greece,
Italy
Romania
* Tax-free for casual players only. Professional gamblers may be subject to income tax.
Gamblers in the UK enjoy one of the most favourable tax regimes in Europe. Winnings from all forms of gambling are entirely exempt from taxation for players. The tax burden falls squarely on gambling operators, who pay Remote Gaming Duty (21%) and General Betting Duty (15%).
Gambling winnings for casual players are tax-free in Belgium. However, professional gamblers face progressive tax rates of up to 50%. The determination of a “professional gambler” is based on regularity, organization, and methodology of gambling activities.
Casual gamblers in France are not taxed on their winnings. Professional gamblers may be subject to progressive income tax rates (0-45%). The tax liability is primarily placed on operators.
Spain has a complex system with different rules for different types of gambling: Lottery: 20% tax on prizes over €40,000; Sports/Casino: Progressive rates 19-45% on net annual winnings
Most gambling winnings are tax-free for casual players using EU-licensed operators. Professional gamblers face progressive income tax rates (14-45%). Operators of online gambling facilities pay 5.3% turnover tax.
Austria offers complete tax exemption on gambling winnings from EEA-licensed operators. The government levies taxes directly on operators (35%-50%).
Poland imposes a flat 10% tax on most gambling winnings above PLN 2,280 (€530). Poker tournaments face a 25% tax on prize value. Tax is withheld at source. Operators pay 10% – 50% of taxes, depending on the type of activity.
Romania has a tiered tax system: Up to RON 10,000: 3%; RON 10,001-66,750: RON 300 + 20% on excess; Above RON 66,750: RON 11,650 + 40% on excess
Most winnings are tax-free except online casino/poker (15% tax). Foreign jackpots and betting winnings are subject to 15% personal income tax.
Winnings from Danish-licensed operators are tax-free for players. Operators pay 28 % of gross gaming revenue. A clear distinction makes the system straightforward.
Winnings from Swedish-licensed operators are tax-free. Operators pay 22% tax on GGR (increased from 18% in July 2024).
Winnings from state monopoly Veikkaus and EEA-licensed operators are tax-free. Major reform of the licensing system is planned for 2026. The operators’ tax rate is 22 % of the GGR.
Greece uses per-session taxation: €0-100: Tax-free; €100-500: 2.5-15% on excess; Above €500: 7.5-20% on excess
Italy applies “tassa sulla fortuna” (tax on luck): Lottery: 20% on winnings > €500; VLTs: 20% on winnings > €200; Online cash games: 20% withholding
| Country | Lottery Tax | Sports Betting Tax | Casino Tax | Professional Status |
|---|---|---|---|---|
| UK
|
0% | 0% | 0% | Tax-free even for pros |
| Belgium
|
0% | 0% (casual) | 0% (casual) | 25-50% for professionals |
| France
|
0% | 0% | 0% | 0-45% for professionals |
| Spain
|
20% (>€40k) | 19-45% | 19-45% | Progressive rates apply |
| Germany
|
0% | 0% | 0% (EU) | 14-45% for professionals |
| Austria
|
0% | 0% | 0% | Variable for professionals |
| Poland
|
10% | 10% | Variable | Same rates apply |
| Romania
|
3-40% | 3-40% | 3-40% | Same progressive rates |
| Hungary
|
0% | 0% | 15% | Same rates apply |
| Denmark
|
0% | 0% | 0% | Tax-free from licensed |
| Sweden
|
0% | 0% | 0% | Tax-free from licensed |
| Finland
|
0% | 0% | 0% | May be taxed on income |
| Greece
|
Progressive | 0-7.5% | 0-20% | Same rates apply |
| Italy
|
20% (>€500) | Variable | 20% | Same withholding applies |
The European gambling taxation landscape reveals a fundamental divide between countries prioritizing revenue generation through player taxation (Romania, parts of Spain) and those focusing exclusively on operator taxation (UK, Belgium, Austria).
The most favourable jurisdictions combine zero player taxation with reasonable operator rates, ensuring both player satisfaction and market sustainability. The UK’s approach of complete player tax exemption, even for professionals, coupled with moderate operator taxes, has created one of the world’s most successful regulated gambling markets.
Countries with high player taxation rates (Romania) or complex progressive systems (Spain, France) may face challenges with compliance and black market competition. The trend across Europe appears to be moving toward operator-focused taxation models that maximize channelization while protecting recreational players from tax burdens.
As regulatory frameworks continue to evolve-with Finland’s 2026 reform and ongoing discussions in several countries-the European gambling tax landscape remains dynamic, requiring both operators and players to stay informed of changing regulations.