Gambling Tax News
It might not sound like the most compelling topic, but gambling taxes have a major impact on punters the world over. In honour of this global impact, I’ve gathered a trio of recent news stories for your perusal. One section deals with gambling taxes in Australia, while two more involve the same subject in foreign nations.
Foreigners Exempt from Taxes at Japanese Casinos
Japanese casinos, more commonly referred to as “integrated resorts,” are expected to open in 2025. However, the government must iron out a lot of kinks in the years leading up to this momentous date. Recently, one such issue got taken care of.
According to Akira Amari, the chairman of the Japanese tax system, changes are coming. Not surprisingly, these changes will coincide with the opening of casinos around the nation.
Here’s how it will work:
- Residents of Japan – Japanese citizens must pay taxes when their casino winnings exceed a certain level.
- Foreign Visitors – Casino winnings are tax exempt for anyone who normally resides outside Japan.
Amari explained this adjustment by saying, “It should be fine to employ the method of tax exemption based on international standards. If no one comes to an IR (integrated resort) we develop, then it will all be pointless.”
This tax reform stands in stark contrast to the previous proposal from the Ministry of Finance. They had suggested taxing all casino winnings, something which both horrified and perplexed potential investors.
Indian Supreme Court Rules on Taxation of Gambling Winnings
The Supreme Court of India recently ruled that winnings from betting, gambling, and lotteries are considered taxable. The court defined such revenue as “actionable items” and present “goods,” which caused them to fall under the Central Goods and Services Tax Act of 2017.
Judges Mukeshkumar Rashikbhai Shah, Ashok Bhushan, and Ramayyagari Subhash Reddy delivered an 87-page judgement on the case. Skill Lotto Solutions set the court case in motion, claiming the tax was a constitutional violation.
The judges disagreed with the plaintiff’s claim, stating that it did not violate the constitution or represent hostile discrimination. The court also agreed that the government may impose the GST tax on lotteries in accordance with Article 246A of the constitution.
Judge Ashok Bhushan also wrote, “When Act, 2017 defines the ‘goods’ to include actionable claims and included only three categories of actionable claims, such as lottery, betting and gambling, for purposes of levy of GST, it cannot be said that there was no rationale for the Parliament in including these three actionable claims for tax purposes, and leaving others.”
ACT Collects Online Betting Tax
Thanks to a 15% point of consumption tax for online gambling, the government of the Australian Capital Territory is enjoying an influx of revenue.
When the tax took effect in January of 2019, the government estimated an annual profit of $2 million per year. However, back in May, they said the tax had accounted for $10.2 million during the 2018-19 financial year. That’s more than five times their original estimate.
This year may be the best yet, as a large number of citizens have turned to online gaming following various lockdowns and closures caused by COVID-19. Also, while a percentage of pokie revenue must be diverted back into community organizations, the same requirement does not exist for online gambling.
Additional Gambling News
Every day, there’s some form of gambling news taking place across the globe. While we certainly can’t cover it all, we do make an effort to touch on topics that might be of interest to Aussie punters. For example:
- No More Pokies for Geelong Cats
- Man Sentenced for Gambling-Related Kidnapping
- Italian Casinos to Close Again
- Negative Reaction to NSW Cashless Pokies