Gambling Tax Act - what online casino and sports betting players need to know

In Slovenia, gambling, including online casinos and sports betting, is only legally allowed in the context of providers that are duly licensed. However, most players ask themselves less frequently: what about tax on winnings? In this article, we explain when and how much tax is due and which situations can lead to unpleasant surprises.

Which winnings are taxed?

In Slovenia, the basic Lawgoverning this area, Gambling Tax Act (GTAA). It provides that the tax is payable on cash prizesreceived when participating in:

• gambling (including online casinos)
• sports betting,
• lotteries and raffles,
• other forms of prize draws.

But beware: the important thing is whether the game provider was licensed in Slovenia or not.

When are winnings not subject to declaration and tax?

Winnings do not have to be declared in the following cases:

• if the winnings were paid via Slovenian providerwhich holds a concession (e.g. Sports Lottery, Loterija Slovenije, Casino Portorož etc.),
• if the winnings do not exceed EUR 300 (this applies to some other forms of prizes).

In these cases, the tax is already automatically diverted the game organiser - the player receives the net amount.

What about playing at foreign online casinos?

This is the most common grey area. Many Slovenians play at foreign online casinos (e.g. PokerStars, Bet365, 1xBet, Stake.com), which not licensed in Slovenia.

In these cases:

• Any cash winnings must be declared to FURS (Financial Administration of the Republic of Slovenia).
• Taxation is based on Income Tax Actwhere winnings are counted as other income.
• The current income tax rate in these cases is from 16 % to 50 %depending on the amount of the winnings and the individual's personal income tax bracket.
• There is also flat-rate option at 25 %if no precise data can be established.

A practical example

If a player receives €5,000 in winnings from a foreign online bookmakers without a licence (e.g. Bet365), and deposits the money into his/her bank account, the FURS may ask him/her to explain. If he has not declared the winnings, he may be fined:

• tax assessment (e.g. 25 % = €1,250),
• interest on late payment,
• and any fine for non-registration.

How do I declare my winnings correctly?

1. Registration is done via eTaxes (paper registration is also possible).
2. The form must be used Income tax return on gambling income.
3. Proof of payment (e.g. statement of transactions, proof of origin of funds) must be provided.
4. The application must be submitted by the deadline 15 days from receipt of the prize.

Does FURS check players?

Yes. FURS has access to bank transactions and can monitor large inflows from abroad. In practice, it often sends a request for clarification if you receive an unusual inflow to your TRR that it cannot link to your declared income.

Tip: if the game becomes a regular activity (e.g. several dozen transactions per month), the FURS can start a procedure to check the status (self-employed, tax resident in another country, etc.).

What can players do to avoid problems?

• If you play with foreign providers, please pay attention to the following correct registration.
• Consider playing with licensed Slovenian providers.
• Keep records all deposits, withdrawals and any losses - FURS may request this information.
• Consult a tax adviser if the winnings exceed €10,000.

Conclusion

Online gambling can be a lot of fun as well as a lot of money, but it's important to understand the tax liabilities that come with winnings - especially if you play at foreign providers without a concession in Slovenia. Unclaimed winnings may lead to additional tax liabilities, penalties and problems with bank accounts.

If you want to stay on the safe side, play Responsible and remember that winnings must also be declared.