Gambling Taxes in Canada Compared to UK and US

Gambling establishments achieve big revenues every year, making them a perfect source of income for governments. However, putting in too many fees can hurt the business, so different countries opt for different tax ranges. The goal remains, get a part of the revenue to better the local and federal communities throughout the country. When it comes to gambling tax, there are two factors to consider. The first is the business side, referring to the costs casinos have to pay. The second is the player side, referring to the percentage a player has to pay when winning something. This article will compare these taxes between Canada, the UK, and the US.

What is Gross Gaming Revenue (GGR)?

Gross Gaming Revenue is the total revenue that casinos make. Different countries introduce various taxes on GGR. Therefore, casinos have to take a percentage of their income and pay it to the government. Payments are portions of the net profit, meaning what is left once all the players take their winnings home. Each of the countries we’ve mentioned has updated its laws, and all of them tax new online casinos as they do with brick-and-mortar locations. Regarding the GGR fees, Canada, US and UK have similar regulations. The government receives from 2% to 40% of GGR, depending on the state and revenue figures. On top of GGR fees, many operators pay annual costs to renew their gaming licenses.


Therefore, when it comes to the business side, there aren’t too many differences between these countries. They all tax casinos as they do with other businesses. However, there’s a big difference in how players are taxed. Let’s take a closer look.

Winning Taxes for Canadians

Canadians are at the top of the list because their government doesn’t require any payments. Therefore, the visitors of the Gaming Club can enjoy playing without worrying about the tax. The Canadian laws perceive gambling as a game of luck. Since it’s not an income source from a legal perspective, the government doesn’t tax the players. Therefore, all Canadians are free from gambling winnings coming from brick-and-mortar establishments and online casinos, no matter if they’re in the country or offshore.

Winning Taxes for Players in the US

The US has strict policies when it comes to gambling. All players have to report their winnings and pay an income tax. Even though gambling is a game of chance, all the winnings are perceived as income that’s taxable. There are some exclusions, though. If you don’t win more than $600, you’re free from paying any fees. Keep in mind that different state regulations range from one state to another. Plus, the Internal Revenue Service has a clear list of which winnings include additional costs. For example, winnings higher than $1,200 are subject to tax if they come from slots.

On the other hand, the figure goes up to $1,500 if we’re talking about winnings from Keno. Therefore, there are two things to keep in mind when gambling in the US. First, which state are you playing, and second, which game are you playing? Federal taxes vary greatly, going from 10% up to 37%. Don’t forget to figure out how much you own on your winnings.

Winning Taxes for Players in the UK

Like in Canada, the players are free from any fees in the UK. The country does an outstanding job of properly taxing bookmakers and casinos. Therefore, the government doesn’t need to tax the players who can enjoy gaming on physical premises and online platforms. All the gamblers can have fun and take their winnings home untouched.


All these countries are getting some revenue from the gambling industry. While the US tax both the casino and the players, Canada and the UK get their tax from casinos. Either way, the government wins and carefully spends the massive revenue from gambling tax. Remember to check the local regulations before you start playing. If not, check them once you’ve won something.

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