Government revenues from licenses and taxes

The Belgian fiscal model for gambling is layered. The state and regions receive money not from one source, but from a set of payments: regional tax on games and bets, annual license fees, VAT on online services (since 2016 for most online games) and corporate tax (CIT) on profits. Below - at which "points" income is formed and what rates are applied.

1) Regional taxes on games and bets (main layer)

Online (casino/slots/betting): Industry guides for Belgium list a benchmark of about 11% of GGR for online verticals; for bets, a flat rate of 15% per margin in individual cases/regions is often featured. This explains the published "plug" of 11-15% for online operators.

Land casinos: Elevated progressive scales are in effect. For example, rates of 33% GGR up to the set threshold and 44% above it (variable by region) are given; in Flanders, part of the games is taxed on the betting shaft. This makes the "land" noticeably heavier online in terms of fiscal burden.

The regional nature of the tax: administration and rates - the competence of Flanders, Wallonia and Brussels, which is confirmed by the official pages of the regions (including Wallonia) on the tax on games and bets.

What this means for the budget: this tax is levied on working margin (GGR) or on progressive scales and goes to regional budgets, forming the bulk of the "gambling" fiscal flow.

2) Royalty/annual fee

For all classes of licenses (A, A +, B, B +, F1, F1 +, etc.), annual fees are provided, the amount of which is established each year by royal decree. This is a separate revenue item, independent of the results of a particular operator.

Profile market reviews for 2024 indicate a range of annual payments: from ~ €22,085 for the upper classes to symbolic amounts for some auxiliary permits. The specifics depend on the license class.

3) VAT on online gambling (from July 1, 2016)

From 1 July 2016, Belgium abolished the broad VAT exemption for online gambling services (the exception being online lotteries). Offline games in some cases continue to enjoy liberation. This adds indirect tax to the budget from online transactions (at the service/commission level according to the provider model).

4) Corporate income tax (CIT)

Profits of Belgian companies (including gambling operators) are subject to 25% corporate tax. The rate is relevant for 2025; for small companies, reduced modes are provided subject to conditions, but the baseline is 25%.

5) How these layers add up to cash flow for the state

1. Regional tax on games/bets → goes to the budgets of the regions (rates and scales depend on the vertical and region: online ≈11 -15% GGR; at the "earth" - high progressions).

2. Licensed annual fees → fixed income by license class, amounts approved by royal decree.

3. VAT on online services (except for online lotteries) → indirect tax in the federal circuit.

4. CIT 25% of taxable profit of operators → federal corporate tax loop.

Additionally, the market generates indirect revenues (contributions to employment, income tax on salaries, F&B VAT in gambling complexes, etc.), but the key "gambling" incomes are points 1-4.

6) Market Context: Base for Taxation

According to data for 2023, gross gaming income (GGR) in Belgium amounted to approximately €1.7 billion (+ 16.7% YoY), while online accounted for ~ €944.6 million, offline - ~ €758 million. These volumes are the "fiscal base" for the regional tax on games/bets and subsequent layers (CIT, VAT).

7) Practical example (schematic)

• The regional tax on games (conditionally 11%) → ~ €11 million in favor of the region.
• VAT: charged according to the rules for online services (not with the whole GGR, but according to the model of taxation of services/supplies in the chain - the operator puts this in the price/commission).
• CIT 25%: accrued on profit after expenses and after payment of regional "gambling" tax; the total depends on the cost structure.
• Annual license fees: Fixed amount per license class for the year.

Conclusion: even with the same GGR, budget returns differ across verticals and regions (online vs offline; rates/progressions; VAT specificity).

8) What is important for operators to remember

Plan P&L by "layers": regional tax with GGR/rates → VAT (online) → CIT 25% → annual fees. Errors in the sequence of calculations and recognition of the base are the most common cause of discrepancies.

Consider regional differences and ground progressions: the offline casino model is fiscally heavier than online.

Follow the annual amounts of fees (royal decree) and for updates on advertising/limits - they indirectly affect the tax base.

Resume Summary

State and regional revenues from gambling in Belgium are formed from four key sources: regional tax on games and betting (online ≈11 -15% GGR; offline - progressions up to 33-44% and higher according to regional models), annual license fees, VAT on online gambling since 2016 and corporate tax of 25% on profit. Together, this makes the system strict and predictable, and the "weight" of taxation is a noticeable driver of the financial discipline of operators.