Home

Tax-free winnings at online casinos

One issue we often get from casino players is whether they have to pay taxes on their income and for their winnings on a online casino. The simple answer is that it depends on what kind of license the casino has. Below the list of recommended casinos, you can read more about what’s applicable and find out more about what criteria are available and which game pages allow you to keep your earnings without paying taxes.

Tax-free profits

There is a monopoly today, which means that no foreign gaming companies are allowed to settle. It is only the Swedish state that is allowed to play games about money, in addition to some lotteries and the like. However, there is nothing that prevents us from playing online at companies based abroad.

When online gambling and online casinos began to get their impact in Sweden, everyone who won money paid tax. This was considered to be in violation of current EU rules and laws regulating trade within the EU / EEA and the state received from the ECJ (as it was called at that time) choose between two options.

Option 1: Begin taxing profits from state games
Option 2: Stop taxing winnings from games within the EU / EEA

As a result, chose to let all profits generated from an EU or EEA country be tax-free because they were reluctant to tax the profits of the state games. On the other hand, if you are taxable, you must pay a 30% income tax on all profits exceeding $ 100 if the casino is outside the EU / EEA.

There are several different licenses that you should keep a close eye on. Let’s look a little closer to the most common and what they mean to you as a Swedish player online.

Malta licensed gaming authority

When a casino has a license from Malta’s gaming authority, it’s the thumbs up for Swedish players. Malta is the same as tax-free and it is because the small island belongs to the EU. Because of this, it is also incredible many casinos that have MGA (Malta Gaming Authority) license. Sites like Leo Vegas and Mr Green are examples of mobile casino and casino with Malta license. This is also a license that is only given to legal players with games tested for fair results.

UK license

This has previously meant that you get tax-free profits, but now that Britain has voted to leave the EU, it can mean changes. So far, UK license still benefits without taxes, but we have to keep an eye on this too. Now, of course, many sites that have this license also have Malta license, so even if the UK license no longer gives us the same benefits, it will not make a big difference to Swedish players.

Gibraltar

Another common license is that from Gibraltar belonging to Great Britain. There are many remote gaming licenses from this area and it is very common for licenses for odds games to come from here. Because a company can use the same license for multiple sites, it is often the case that a casino operator operating many different gaming sites selects the Gibraltar license.

What is so good about Gibraltar licenses is that they place high demands on gaming operators. You do not get this kind of license so easy, which means that the casinos that have it can count as very safe and fair.

So far, winnings from casinos with Gibraltar license are tax-free. The area located in the southern part of Spain is classified as British territory and is thus part of the EU. Following Brexit, discussions on special agreements between the EU and Gibraltar have begun. Given the dependence of free trade in the EU, it is very likely that you will find a solution that prevents profits in casinos with the Gibraltar license to remain tax-free, but this is of course something we must keep an eye on on.

Advantages of tax-free casinos for Swedish players

You are well aware that we have a monopoly in Sweden. Even though the EU is pushing and trying to abolish this monopoly, it is still the case that foreign casino operators can not conduct their business physically from Sweden. In practice, this means that foreign actors as well as private Swedish actors can not have their spell on Swedish soil.

Thanks to EU laws on trade between EU countries and the countries that are part of the EEA, it is nevertheless that we can play in foreign casinos that have their server in another country. This is fully legal and in addition, the EU license ensures that we do not have to pay taxes on profits. There are many advantages to this system and some of the top ones are:

Good competition-When you access more than Svenska Spel’s casinos, it means you can make higher demands. Casino sites compete with each other and do their utmost to give you what you are looking for, namely good game offer, lucrative bonuses and good winning chances.

Variation- With many choices you also get variation. You can be a member of several online casinos at the same time and choose the one that suits you best right now. In addition, it is common with game sites that combine casino games with bingo, poker and odds to make you incredibly fun and exciting under one roof.

A big foundation for big jackpots – With online casinos available for Swedish players as well as for other players from Europe and around the world, progressive jackpots are quickly built. You get the chance to win much more than in a regular Swedish venue.
You can keep your money! “This is perhaps the main advantage of tax-free casinos online, you can keep the money just as they are and do not need to keep track of how much you get into your account, as this should not be reported to the Swedish Tax Agency.

Casinos that are not tax-free

There are also casinos who have chosen to get a license outside of the EU / EEA and that does not mean they are bad game sites! Nor is it illegal to play on them. It simply means that you have to declare your net profit each year and then pay income taxes on what you won.

In our reviews, the license is important and we know that tax-free casinos are important to you. Despite this, there are many gaming sites that have other advantages that weigh out the fact that they have licenses issued outside the EU / EEA. These can be exceptionally good bonuses, good conditions or other great benefits like security solutions or high quality. Sometimes it’s worth paying a little tax if you win more money at the same time, and really enjoy being at Winner or BGO for example.

Some of the countries most famous, outside the EU / EEA, offering game licenses are Isle of Man, Alderney, Belize, Curacao, Antigua and Barbuda, Costa Rica and Aruba. Winnings from casinos licensed in these countries are therefore not tax-free.

Tax-free winnings after Brexit – What changes?

UK Gambling CommissionThis is a bit more diffuse because negotiations are not yet complete. We do not know with 100% certainty how it will be. On the other hand, by means of analyzes and listening to experts, we can describe a very likely scenario. As Britain leaves the EU, the vast majority of betting sites will leave the UK. Alternatively, they will have dual licenses so that EU citizens will continue to be able to enjoy tax-free casino profits.

Experts believe that as many as 40% of all gaming companies currently licensed by UKGC will move their offices. It will hit England, and above all Gibraltar hardest. However, our hope is that London and Brussels will come up with a solution that works for all parties and that does not make us play.

Large selection of dishes

New gaming legislation in progress in Sweden – How does it affect us?

There have been, and still exist, many who are worried about what a new gaming legislation means to us who want to play online. This is how it is:

  • It was never the question that the investigation would look if players were to pay taxes.
  • It is the gaming companies who are taxable on their profits.
  • Hard requirements are imposed on gaming companies that want to conduct business in Sweden.
  • You as a player get increased security, greater security and continue to receive tax-free profits.

If a gaming company wants to conduct business in Sweden, they must obtain a Swedish license. To get this license, they must meet some requirements. Among other things, information about gambling addiction, the ability to have a gaming budget, the possibility of self-shutdown, and to give full insight to the State Lottery Inspectorate that will oversee gaming companies. It is suggested that gaming companies will be taxed with 18% of their total profit, and this applies to the companies and not to the players.

If the new bill is approved in its entirety, as it was presented by the committee that was added, then it is only beneficial to us who play online. Most of the gaming companies will apply for this license because otherwise they will not be able to play games in Sweden either.

Tax-free winnings on poker

You can not always expect the poker room to have an EU license, even though the casino on the same site has it. One example of this is Come On Casino, which has the casino licensed in Malta, but the poker room registered in Curacao. The Swedish Tax Agency has published a detailed list of tax-free poker rooms, which you will find here.

Tax-free winnings on sports games

Even the sports betting may have its license issued in a completely different country than the casino side itself. It is therefore important that you always check the license they are working on and choose from where you want to add your games. Unfortunately, the tax authorities have no list of which sports sites are tax-free so if you are unsure, it is always best to contact the support at the casino. They can then tell you where they have their license issued.

Tax-free winnings at land-based casinos

This is easier, you usually know which country you are in and thus also if you are going to estimate your profits or not. In Sweden, and in the rest of the EU, just pay off your profits and go home with a smile!

Much to keep track of? – We are looking forward to you!

The simple answer to the question, whether paying taxes or not, will be that if you play at a casino that is licensed in the EU, the winnings are tax-free and you play at a casino that is licensed outside the EU, so you must pay taxes. In the text above you have all the information you need to choose a casino online that suits you and your game style and also everything you need to know to find a tax-free casino.

In our reviews you can always read about each individual casino and find out if you need to pay taxes or not and we recommend that you visit us often to keep track of new rules and laws. We keep updated all the time so you will not let it go!