Governments are honing in on the numbers when it comes to revenues from gambling. And taxing gambling and sports betting can be a great way to earn additional revenue. Czech Republic’s finance minister, Alena Schiller, thinks that their state could gain more revenue from collecting a higher amount of taxes. That additional revenue can be gained from increasing taxes on casino games, lotteries, and sports betting.
Of course, if you want to open a sportsbook, using the services of a company that provides sports betting software will make your operations much more affordable and manageable. Profits will depend on how you manage your sportsbook, just like how anyone would manage their own business.
Taxing Gambling and Sports Betting
In Czech Republic, the tax increase is highly likely, though the gambling industry will not be the only one affected. The increase in taxes are also planned to be collected from the sale of goods, which include tobacco and alcohol. If Schiller’s efforts succeed, this can be seen as early as the beginning of 2020.
Schiller points out that there is an increase in the average salary of the country’s citizens, and therefore have a higher purchasing power. Which, naturally, means that the government can collect more money. To compare the parallels between wage growth and consumer taxes: wage growth from 2009 to 2018 is 45%. Meanwhile, the consumer tax on alcohol was last changed back in 2010, and is not due for an increase until 2020.
For sports betting, there could be an increase in tax rate by 2%. As for other gambling activities and lotteries, the taxes will be 7%. This is low compared to alcohol (increase by 10%) and hard liquor (increase by 13%). But these measures are said to give the government an additional $405.5 million annually.