Revenue and metrics

Gaming tax: the state's share of casino revenue

Gaming tax (gambling tax) is what the operator pays the state on gambling: usually a percentage of GGR, sometimes of betting turnover. For example, at a 20% tax on GGR, a casino with €100,000 of GGR a month pays €20,000. The tax is deducted from GGR together with bonuses when NGR is calculated.

Yevhen SychovOctober 2026

What it is charged on

BaseHow it is calculatedWhat matters
GGRa percentage of bets minus winningsthe tax rises and falls with revenue
Betting turnovera percentage of the sum of all betsthe tax is paid even in a losing month, and it hits low-margin games hardest

The rate, the base and how the tax is paid are set by the market's law and the licence. There are also licence fees, and in some markets the operator withholds tax on the player's winnings.

Formula and example

NGR = GGR minus bonus cost minus gaming taxFor example, monthly GGR is €100,000, bonuses cost €10,000 and the tax is 20%. If bonuses are not deducted from the base, the tax is €20,000 and NGR is €70,000. If they are deducted, the tax is €18,000 and NGR is €72,000.

A tax on turnover works differently. For example, turnover is €2,500,000, hold is 4%, GGR is €100,000 and the tax is 1% of turnover: €25,000, or 25% of GGR. In a bad month GGR falls to €40,000, but the tax is the same €25,000: already 62.5% of GGR.

How tax changes bonuses

  • Bonuses deducted from the base: part of their cost comes back through lower tax. In the example, €10,000 of bonuses cut the tax by €2,000.
  • Not deducted: tax is paid even on money that went back to players as bonuses. Every bonus costs its full price.
  • Tax on turnover: if the law also taxes bonus-money bets, the tax grows with every euro wagered. A €100 bonus with x40 wagering generates €4,000 in bets, and a 1% tax on them comes to €40.

Bonus Rate is still calculated on GGR, and an offer is judged on NGR after tax.

Common mistakes

  • Planning on GGR. Before tax the market looks profitable, but NGR after tax and bonuses may not pay back the cost of entry.
  • Leaving tax out of the RevShare contract. If NGR for the affiliate is calculated before tax, the casino also pays commission on money that went to the state.
  • Comparing markets on NGR. Taxes differ, and NGR across countries cannot be compared. For comparisons, use GGR and Bonus Rate, and keep tax as a separate line.
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