Casino games and taxes-what really matters?

Casino winnings can be tax-free depending on which games you engage in and on which online casino you play. When in early 2019 began to distribute New Zealand gaming licenses to casinos that applied for it to be able to offer their services and games in New Zealand, there has been little change in the New Zealand gaming market. One of the major changes was about tax on casino and whether New Zealand players would be taxable or not on the casino winnings made in a New Zealand casino. Here we go through when and how much tax you pay on different casino winnings .

Are casino winnings taxable?

Have you ever wondered what it's really like with winnings from online casinos and taxes? Are profits taxable or not? Only sometimes? And if so, when? If we are going to give you a brief answer to these questions, it is as follows: Nowadays, it is enough to make sure that the casino you play at has a New Zealand gaming license to be absolutely sure that your winnings are free from taxation . If you play at a New Zealand online casino with a New Zealand license, you can be sure that this is one of the many tax free casinos who are registered with and with whom you do not have to pay tax for winnings.

But there is of course a more intricate answer for those who want to know how taxation on casino winnings works more in depth. Casino winnings are tax-free if the game is organized within the EU/EEA – but there are some exceptions . However, if the game is organized outside the EU / EEA, the winnings always taxed as a capital income, that is, against 30 percent. Nowadays income is not taxed on winnings from lotteries, poker and casino games longer – as long as the game and the casino are not organized outside the EU/EEA.

What is$uxet?

So it's not just to start playing at any European online casino. The New Zealand tax agency has information on how this works, but we have chosen to simplify the whole thing a bit.

• If you come across an online casino that is aimed at New Zealand players in such a way that the website has been translated into New Zealand and payments can be made in New Zealand currency, but without them possessing a New Zealand license, then your winnings will be taxable when you play at that casino.
• However, if you play at a European online casino without a New Zealand gaming license, and which does not target New Zealand players in such a way that the Website is displayed in a language other than New Zealand and deposits and withdrawals are made in a currency other than $, you do not have to pay tax on any winnings.

Therefore̊: It is therefore up to everyone to check how things are with taxation on various online casinos before you start playing. But if you know where the license comes from, there should be no problems.

Our tip : scroll to the bottom of the casino's website to see which country their license comes from. If you see the s log, you can feel safe, not only in terms of taxation but also all security features such as deposit limits, self-test and account freezing. All New Zealand licensed gaming companies also follow the same restrictions and laws, which is the main reason why we do not recommend playing at casinos without a New Zealand license.

Some explanatory examples from the New Zealand tax agency

To make it as clear as possible, the New Zealand Tax Agency's website has published some examples of scenarios where profits are taxed and when it can be avoided. This will hopefully provide a more in-depth explanation and is thus taken from the New Zealand tax agency.

Example 1: You Play Online poker at a bookmaker operated from Malta and the game is aimed at New Zealand players. However, the company does not have a New Zealand gaming license and your winnings will therefore be taxable.

Example 2: You play casino games at a gaming company operated from Dubai. The game does not specifically target any market within the EEA and your winnings are taxable.

Example 3: You play online casino games with a gaming company that is primarily provided in Germany. The games are therefore aimed at German players, and have not adapted the website to New Zealand, but the winnings remain free of taxation because the game is provided within the EU/EEA and the specific game does not have a New Zealand gaming license.

Example 4: You win in poker at a casino in the United States that is provided outside the EEA. Therefore, the profit is taxable. But if the game had instead taken place in Paris, the profit is tax-free,because the game is then provided within the EEA and does not have a New Zealand license.

Casino license-get a quick idea

The first thing you should check when playing at an online casino is whether they are really stationed within the EU, as well as whether they hold a New Zealand gaming license. This is usually quite easy to check as most online casinos have published this information at the bottom of the website. There you will find a smaller text that clearly explains where the business is run, and which operator provided the gaming license. The picture below shows what the fine print looks like at The New Zealand online casino Snabbare.com .

We are aware that this is really bog style, but if you enlarge the picture a little, you will see that it says that faster is run by a Maltese company whose the Organization number is written together with contact details and the date when the license expires . Faster Casino, like many other New Zealand casinos online is operated from Malta but has a New Zealand license, and should you find yourself at an online casino that does not present this information in a clear and clear way, our recommendation is that you turn the heel and choose another, serious gaming company. Partly because you can otherwise go on a tax claim if you happen to win at a casino operated outside the EU.

Common countries for operating and licensing online casinos

There are a whole bunch of countries that distribute licenses to online casinos that meet the respective country's$av. The fact that a country is located outside the EU does not mean that online casinos licensed there would be rogue or bad. However, for us New Zealandr it is always safest to choose a casino that is operated and licensed within the EU. For your convenience, we have compiled a list of countries (in addition to New Zealand) and their tax status:

Tax-free profits – as long as they are not targeting New Zealand players.
Cyprus
Estonia
Gibraltar
Latvia
Malta
UK
Aland islands

Non-tax-free profits
Alderney
Antigua and Barbuda
Aruba
Costa Rica
Curaçao
Isle of Man

Tax liability for casinos outside New Zealand

We understand that it is tricky that some online casinos that seem to be completely New Zealand basically do not have a New Zealand gaming license at all, but that profits from other European gaming companies do not need to be taxed if their website is only in another language. It can be easy to misunderstand as many game companies are so skilled that even the graphics and website design look Scandinavian at times.

And surely it can feel ugly, to have to tax on a profit you thought was tax-free to begin with? That is why we recommend that you always start by looking at the logo of the license of the casino you are considering making a deposit at. And if it is to any consolation, then significantly tougher penalties apply to foreign casinos that choose to target the New Zealand gaming market without owning a New Zealand license.

Casinos without a New Zealand license who offer their services to New Zealand players instead usually get a pretty juicy fine note. However, if you are a player at a casino without a license and win big, a fairly large piece is taken from you. Gambling winnings exceeding$ 100 at a casino without a New Zealand license are taxed as capital income of 30% of the net profit .