All winnings from casinos licensed in Denmark are tax-free for the players. The same applies to casinos that are registered in the EU.
At Casinopenge.dk you will find a complete list of all casino bonuses at tax-free Danish casinos.
Casino without tax – applies to all Danish online casinos
All casinos with a license from the Gambling Authority pay tax to Denmark, and this means that you as a player do not have to pay tax on your winnings. You do not have to report your winnings on your tax return, but can simply keep the entire winnings and can use them as you wish.
If you play at an online casino without a license in Denmark, you need to find out where they belong to see if winnings are taxable. If the casino is based in another EU country – if they e.g. is licensed in Malta – you don’t have to pay tax on your winnings either. If, on the other hand, the casino is based outside the EU, e.g. one of the tax havens such as Curacao or the Bahamas, then your winnings are taxable, and you can read in the next section how to pay tax.
The same applies if you play at real casinos: If the casino is located in the EU, e.g. Monaco, your winnings are tax-free, while you have to pay tax on winnings won at a casino outside the EU, e.g. in Las Vegas or Macau.
Casinos in Denmark pay 20% tax on their gross gaming revenue to the Danish state. The gross gaming income is calculated as all deposits from players plus all bonuses that the casinos give to the players, minus all payouts that the casino pays to the players. They therefore pay tax on both their income and bonuses, even if they pay for the bonuses themselves. They cannot deduct any expenses – these must also be paid from their income after tax. On 1 January 2021, the tax rate will be raised to 28%.
Tax on casino winnings from outside the EU
Winnings from casinos outside the EU are taxable, but not subject to AM contributions. This corresponds to a tax of approx. 40% in addition to any top tax The tax authorities do not receive information from the casinos about your winnings. Therefore, it is your responsibility and duty to declare gains in section 20 of the tax return (other personal income). (See the Customs and Excise’s guidance for the tax return regarding section 20 and especially tax on gains that are liable to tax).
Below is an explanation of how you can prepare your accounts. The explanation does not take 100% into account which entries belong to this year and which belong to the next. But it’s a reasonable and relatively easy (and not least easy-to-define) compromise to solve the task if you play at many casinos.
Avoid paying tax on your winnings – play for example at Bet365 – lots of games and Jackpots
Otherwise, the following rules apply to unapproved casinos – and other gambling sites – outside the EU:
- From your PC bank, you must export the records from the entire year – or as long as you have been playing casino. (We hope you have PC bank – otherwise it’s running at the keys)
- Load the exported file into a spreadsheet.
- Sort the records by the text line.
Start by finding your check cashings, transfers from foreign banks and other income from foreign casinos and cut them into another spreadsheet. Income that has not gone through the bank is also added to this. This is your income.
After this, you find your foreign VISA/Dankort and Mastercard transactions – positive and negative – and cut them into the second spreadsheet a few lines below your income. Remember to sort out the transactions that have nothing to do with the casino game. The sum of these transactions is likely to be negative.
If you have transferred money to casinos in other ways via checks or transfers, these amounts must also be deducted.
Find your internet bills for the period you played casino and add them together on the spreadsheet. Estimate what proportion you have used for casino games and deduct this proportion from the amount.
Finally, you add up the other expenses you have had and can document, and subtract this amount.
You now have your taxable income, which must be entered in box 20 on the tax return.
Put all the entries up so that it is clear. Add the text necessary for understanding and attach this account to the tax return. (The receipts must not be attached).
