Government revenues from licenses and taxes

The Slovak gambling industry is a compact but stable part of the fiscal system. After the liberalization of online (since 2019), budget revenues are formed from three main blocks: taxes on GGR, licensing and supervisory fees and cash flows from the TIPOS state lottery (dividends/earmarks). Below is the structure, mechanics and approximate calculations.

1) The main channels of state income

1. GGR taxes (gross gaming income)

The base rate for casinos (offline/online) and bets is about 22% GGR.

Base - difference between accepted bets and winnings paid (excluding operating expenses).

Vertical differences in the methodology are possible, but the general principle is tax on the gross margin of the product.

2. Licenses, permits and supervisory fees

One-time payments for issuing/renewing licenses.

Regular payments for supervision, content/software certification, registration fees for gaming halls/terminals, reporting services of the regulator.

For online operators - payment for domain permission/level of access to state registers (self-exclusion, etc.).

3. Fines and sanctions

For violations in advertising, KYC/AML, RG tools, reporting.

Additionally - penalties for blocking unlicensed sites and payment channels.

4. TIPOS (state-owned company)

Dividends to the budget as from an asset with state participation.

Earmarked contributions to social/community programs from lottery proceeds according to established rules.

💡 Note: VAT, as a rule, is not a key source for bets/games, since the tax base is precisely the GGR tax and special fees (and not the turnover of bets). There are separate modes for lotteries and related services.

2) Estimated revenue fork in the market ~ €1 billion GGR

We rely on the previously adopted market capacity estimate ~ €1 billion GGR/year.

GGR simplified section (working model):

Casino (offline + online): €440-480 million
Bets: €330-380 million
Lotteries (TIPOS): €150-190 million
Other (poker/bingo/club): €20-40 million

1) GGR tax (casino + bets):

Base: ~ €770-860 million (casino + bets).
Rate: ~ 22% ⇒ €169-189 million per year.

2) Licenses and supervision:

Depends on the number of licensees, halls/terminals and the amount of online activity.
Working fork: €8-15 million per year (total market).

3) Penalties/sanctions:

Volatile, but usually €1-3 million per year (in "normal" years without large cases).

4) TIPOS (dividends/earmarks):

Depends on final profit and distribution policy.
Benchmark: Double-digit millions of euros a year.

Final budget revenue corridor:

≈ €180-230 million/year, taking into account variations in rates, licenses, fines and dividends.

3) How the state "runs the tap" of revenue

Tax stability. Betting on GGR gives a predictable base; the changes more often concern advertising, bonuses and RG policies than the rate itself.

Supervision of legality. Domain/IPS block lists and suppression of payments to unlicensed sites protect the tax base.

KYC/AML и RG. Tight verification and time/limit control reduce social risks - this indirectly maintains the sustainability of revenues.

State Lottery TIPOS. The social mission and dividends are a "predictability cushion" for the budget.

4) What matters to operators (to live in peace with the fiscal model)

Transparent GGR accounting: accurate reports, certified RNG/games, logging of events.

Timely payments: taxes, licenses, supervision - without delays, with a liquidity reserve.

RG/AML quality: fewer fines and checks, higher trust - from both the regulator and the players.

Local integrations: support for quick payments, clean advertising practices, compliance with age restrictions.

5) Forecast to 2030

Online is growing faster than offline: the share of online can reach ~ 60-65% of GGR, which stabilizes fees due to "transparent" reporting.

Fiscal corridor (taxes + fees + dividends) - €200 million + in a moderately optimistic scenario with market growth and no shocks.

The regulator's focus shifts to quality: advertising, bonus policy, anti-fraud, behavioral triggers RG.

6) Quick "cheat sheet" according to the formula

Casino/wagering tax: 'GGR vertical × ~ 22%'

Total from market: 'Vertical tax Σ + licences/supervision + penalties + dividends/target TIPOS'

Plan factor: Take into account the seasonality of sports and tourism, as well as "RG-quality costs" (they reduce the risk of fines).

For Slovakia, the gambling industry is a sustainable source of €180-230 million/year of budget revenues with a market of about €1 billion GGR. The framework creates a GGR tax (~ 22%), and licenses, fines and TIPOS add an "add-on." Further growth will depend on the quality of online: transparent payments, strict RG/KYC and neat advertising - something that both protects the player and maintains the stability of fiscal revenues.