Sist oppdatert den April 20, 2023 da Ludvig Hansen
Taxation is never a simple topic, and the answer you receive is often influenced by the situation and who you ask. In Norway, taxation is a large and difficult subject where there are many opinions and interpretations. Taxation in online casinos is not any easier.
Tax on winnings from games applies to both Norwegian and foreign casinos, which is why it is important to inform yourself about the rules for taxation on winnings.
Soon, the 28% tax in online casinos will come to an end. When Norsk Tipping introduces taxation on online casinos, it means that winnings from all similar casino games from other foreign casinos will also be exempt from taxation.
If you play in an online casino based within the EU, you can avoid any inconvenience later on, and it provides you with extra security if the casino is regulated and licensed within a European country that is a member of the EU or EEA. Previously, it has been the case that Norwegian players have had to pay taxes on winnings from online casinos, despite not receiving tax deductions for expenses related to the same games. This is not only unfair, but the practice Norway carries out here violates the rules of the EEA/EU.
Are gambling winnings taxed in Norway?
The Norwegian Tax Administration has established rules for the taxation of winnings in Norwegian casinos. Tax on Norwegian casino winnings will meet the Tax Administration’s definition of “windfall” as any form of payment you receive without effort, and the Tax Administration requires that Norwegian casinos report winnings over 10,000 NOK to the Tax Administration.
28% tax on casino winnings in Norway
There is a 28% tax on capital in Norway. If you trade stocks, you must pay a 28% capital tax, and the same applies to income from bank interest to currency gains. However, lottery and gaming prizes covered by the Lottery Act are exempt from this tax.
28% tax on cash prizes from foreign gaming companies was supposed to be history after Norsk-Tipping launched its own online casino, as a result of Norway’s EEA membership. However, this is not being enforced, and it appears that winnings from foreign gaming companies are still taxed in the same way as before.
Tax on online casino winnings could become history
Times are changing, and much should be different now that Norsk Tipping has its own casino. This is good news, not primarily because you can now play at a state-owned online casino, but because it means that all similar gambling games will also be tax-free – in theory.
You can therefore expect to play casino games in the future without paying tax on winnings, even if you play at foreign gaming companies within the EU/EEA. This means that blackjack, roulette and video poker will be tax-free. And finally, you can once again play slot machines without paying tax on your winnings.
The consequence of Norsk Tipping’s launch of online casino is tax-free casino winnings:
Section 5-50 (2)d of the Tax Act on incidental income
- 5-50. Incidental income – (2) Income, whether paid in a lump sum or spread over a period, does not include gains from:
- a) Norsk Tipping AS;
- b) Totalisator games covered by the Totalisator Games Act;
- c) Raffles covered by the Lottery Act,
- d) Gambling and lotteries in another EEA State which are recognised as equivalent to those games or lotteries which may lawfully be offered in Norway and which are subject to public supervision and control in the home State. The Ministry may issue regulations to supplement and implement this provision.
When Norsk Tipping announced the launch of a state-owned Norwegian online casino, there was great excitement among foreign gambling companies as well.
Paragraph §5-50 2(d) on random income states that all gambling games that are equivalent to those that would also be legal to offer in Norway, and which are subject to public supervision and control in their home state, should be tax-free.
Therefore, all casinos licensed in Malta, Cyprus, and the United Kingdom should be tax-free.
Player Requirements
Taxes on Norwegian casino winnings and sports betting will follow Norwegian tax authorities. The tax authorities determine that you must be over 18 years old, resident in Norway, and not have any criminal or tax convictions that would prevent you from claiming your winnings. The tax authorities also check if you have played regularly and systematically for at least one year to confirm whether you are an active or inactive player. This means that you must be aware of current tax rules for gaming and winnings to avoid taxation. The tax authorities also require Norwegian casinos to send a record of winnings over 10,000 kroner to the tax authorities so that they can check who won the money and how much tax was paid.
Tax on Gambling Winnings
Tax on gambling winnings applies to both Norwegian and foreign casinos, so it is important to familiarize yourself with the tax rules on winnings. The tax you pay depends on the size of your winnings and whether you were an active player or a new player. Tax on gambling winnings can be a different percentage depending on the type of winnings you have received. Tax on Norwegian casino winnings must be paid every year, and it is important to remember that you should know which tax rules apply.
When is a Win “Random”?
The tax authorities define additional income as any form of payment that you receive without effort. This includes lottery winnings, bingo, contests, free spins, and gambling. Tax on gambling winnings is taxed as income, so this tax must be paid. They also determined that if you are a professional player and your winnings exceed 10,000 kroner, you must pay tax. The tax authority’s rules on tax on gambling winnings require that the tax on winnings in Norwegian casinos must be paid by January 1 every year. To avoid taxation, you must also be able to determine which games are random and which are not. Tax on Norwegian casino winnings is something all players should be aware of.
For gevinster i hvilke spill må du betale skatt:
- Tilfeldige gevinster fra pokerspill
- Overskudd fra sportsspill
- Lotterier
- Andre gamblingspill.
The exception is certain types of windfall gains
Tax exemption means that if you win less than NOK 10,000 in Norwegian casinos or sports betting, you do not have to pay tax. However, the Norwegian Tax Administration encourages you to pay tax on income above this amount so that you can secure permanent debt. Therefore, you should be aware of the tax on winnings in Norwegian casinos.
Avoid tax on casino winnings
The tax authorities will continue to argue that foreign winnings will be taxable, but a change here could come at any time. We expect that in the future you will be able to play tax-free in a number of foreign online casinos, cf. the Tax Act §5-50 2d, but only in online casinos within the EU.
Choose your online casino wisely! Winnings from some gambling sites will probably be taxed for a long time yet, this applies primarily to those gambling companies that are based outside the EU. We therefore recommend that you use some of these EU casinos if you have any hope of winning tax-free winnings in the future:
- Dolly Casino
- Biamobet
- Cobra Casino
- HazCasino
- Vegaz Casino
These all offer online casinos based in the EU. The casino you play at will often help you understand the legal tax laws that apply to their casino, especially if it’s a foreign gaming company that specifically targets the Norwegian market and has knowledge of relevant tax issues for Norwegian players.
Important to remember: always report all winnings over 10,000 kroner to the authorities in your tax return. Remember to keep all documentation regarding your winnings! In case of claims for payment of tax from the Norwegian Tax Administration, it is always wise to hold back winnings won in online casinos until this is clarified. Play only in EU/EEA casinos, as this gives you hope for zero taxes on winnings as well as better regulation and player safety.
Ludvig Hansen
FAQ
Do you have to pay tax on Norwegian casino winnings?
The Norwegian Tax Administration has established rules for the taxation of winnings in Norwegian casinos and tax on winnings in Norwegian casinos must be paid annually.
What is a tax exemption for winnings?
The tax exemption means that if you win less than 10,000 kroner in Norwegian casinos or sports betting, you do not have to pay tax.
What requirements do the tax authorities impose on gambling operators?
The tax authorities require you to be at least 18 years old, resident in Norway, and have no criminal record or tax penalties that prevent you from claiming your winnings.
Do I have to pay tax on all winnings?
The Norwegian Tax Administration asks you to pay tax on income over 10,000 kroner so that you can avoid the consequences of not paying tax according to the law.
