Gambling tax and bonus deductibility by country

Updated 2026-10-20

Rates last checked 2026-10-20

Two operators can run the same bonus at the same cost per player and get very different results, because gambling tax treats bonuses differently from one market to the next. This page sets out the three questions that decide it, a table of rates and bases for the markets BonusBench tracks (generated from the same configuration file the bonus cost calculator uses, so it updates when a rate changes), and worked examples.

Three questions that decide what a bonus costs after tax

1. What is the tax base?

Most regulated online markets tax gross gaming revenue (GGR): stakes minus winnings. Some tax net gaming revenue (NGR), which is GGR after bonuses and sometimes other deductions. A few tax stakes (turnover) directly, as Germany does for virtual slots and online poker.

2. Is the bonus deductible?

On a GGR base, the question is whether bonus money counts as a stake or a payout. If the regulator lets the operator deduct bonus costs, the taxable base falls and the state effectively shares the cost. If not, the operator pays tax on the full GGR and funds the bonus from what is left. The UK is the clearest example of the second case: freeplays staked are valued at nil for Remote Gaming Duty.

3. Are there levies on top?

Licence fees, responsible-gambling levies and concession fees are often charged on a different base from the main tax. A levy on NGR reduces slightly when bonuses rise; a levy on stakes rises with every wagered pound.

Rates, bases and bonus deductibility by market

Rows marked with an asterisk have not yet been checked against a primary source, or have an open question on how bonuses are treated. Until they are, the calculator treats bonuses in those markets as not deductible, which is the conservative assumption: it never understates cost.

• United Kingdom (casino). Remote Gaming Duty rose from 21% to 40% on 1 April 2026. Freeplays staked count as nil value, so a bonus never reduces the duty: the operator carries 100% of the bonus cost.
• United Kingdom (sports). Remote betting (General Betting Duty, remote) is 15% and goes to 25% from 1 April 2027. Free bets are treated as not deductible here, matching the RGD freeplay treatment. Open question: Confirm free-bet deductibility under General Betting Duty.
• Netherlands (casino). Gaming tax on gross gaming result, 37.8% for 2026 (34.2% in 2025). Open question: Verify the 2026 rate and whether bonuses reduce the taxable gross gaming result.
• Italy (casino). Online casino, bingo and poker 25.5% of GGR (online betting 24.5%). Open question: Rate confirmed in trade press only; verify bonus treatment and the 3% fee with ADM.
• Italy (sports). Online sports and virtual betting 24.5% of GGR. Open question: Rate confirmed in trade press only; verify bonus treatment and the 3% fee with ADM.
• Denmark (casino). 28% of GGR from 2024. Open question: Verify bonus deductibility and the bonus rules (10x, DKK 1,000).
• Sweden (casino). 22% of GGR from 1 July 2024. Open question: Verify bonus deductibility.
• Spain (casino). 20% of net gaming income (stakes minus prizes, i.e. GGR). A rise to 25% has been reported but is unconfirmed. Open question: Verify the rate (20% vs reported 25%) and whether bonuses reduce net gaming income.
• Ontario (casino). 20% revenue share paid to iGaming Ontario. Open question: Verify whether the 20% share is on GGR or NGR after promotional credits.
• Malta (casino). 5% gaming tax on GGR for B2C licensees. Open question: Verify bonus treatment.
• Pennsylvania (slots) (casino). 54% of GGR on online slots. Open question: Verify whether promotional credits are deductible for iGaming in PA.
• Pennsylvania (tables) (casino). 16% of GGR on online table games. Open question: Verify whether promotional credits are deductible for iGaming in PA.
• Germany (virtual slots) (casino). Virtual slots and online poker are taxed at 5.3% of every stake, not of GGR, so wagering a bonus generates tax on every spin. Open question: Verify the rate and whether bonus-funded stakes are taxed.

The same offer in every market

Here is one offer, 100% up to 100 in local currency with 10x wagering on the bonus, a 50 average deposit, 96% RTP, 70% take-up, 30% completion and 150 GGR per first-time depositor, run through each casino market. Currencies are not converted; the point is the shape, not the absolute amounts.

Because every listed market is currently configured as not deductible, the bonus cost per player is the same everywhere except Italy (where the 3% NGR fee shaves a few pence off) and Germany (where wagering the bonus generates stakes tax). What differs is the margin left to pay for it: from 142.50 per FTD in Malta to 69.00 in Pennsylvania slots.

How much deductibility is worth

At 20%, deductibility cuts the after-tax cost of a 9.00 bonus to 7.20. At 40% it cuts it to 5.40. The higher the rate, the more a deduction is worth, and the more a non-deductible regime like the UK penalises bonus-heavy acquisition. Note the break-even NGR: with full deductibility it is zero (tax is paid on NGR, so any positive NGR is profitable before acquisition costs), while without it the operator needs positive NGR just to cover the tax on the GGR the bonus did not shield.

Stakes-based tax: the German case

Germany taxes virtual slot stakes at 5.3%, regardless of outcome. At 96% RTP the house keeps 4p per pound staked, so a 5.3p tax on that pound is 132.5% of GGR: the operator loses money on every spin before paying for a bonus. That is why German slots typically run at much lower RTPs.

Bonuses make this worse in a way GGR-based markets do not see: the wagering requirement exists to generate turnover, and every pound of that turnover is taxed. Our model counts the full required turnover for players who complete and half of it for players who drop out, so in the 96% RTP example the bonus adds about 17.22 of tax per claimer on top of a 9.00 bonus cost. At 89% RTP the edge recovered exceeds the bonus, but the stakes tax remains.

Using this when you design an offer

• In non-deductible GGR markets (the UK today), size offers to the post-tax margin of the target segment, not to competitors' headlines.
• In deductible or NGR markets, the state shares the cost; the same headline is cheaper, and break-even is easier.
• In stakes-taxed markets, wagering requirements add tax. Prefer low-wagering or wager-free offers with smaller values.
• When comparing your offer to a competitor in another market, compare after-tax cost per FTD and the share of post-tax GGR, not the headline.

The calculator has a compare mode that runs one offer in two markets side by side, plus a custom market where you set the rate, base and deductibility yourself.