Taxation: 22% GGR for online and offline operators

Volumetric text of the article

1) What is taxed: GGR base

GGR (Gross Gaming Revenue) is the gross gaming revenue of the operator: the amount of bets accepted (handle/turnover) minus the amount of winnings paid. Payment provider fees and operating expenses are not included in GGR.

Formula: GGR = Bets − Wins

Tax: 22% of GGR for all licensed verticals (online and offline).

Example of calculation (online casino):

Monthly rates: €1,000,000; Payments: 950,000 €.
GGR = 1 000 000 − 950 000 = 50 000 €.
Tax 22% = 50,000 × 22/100 = 11,000 €.

Calculation example (bookmaker):

Bets: €2,500,000; Payments: 2,350,000 €.
GGR = 2 500 000 − 2 350 000 = 150 000 €.
Tax 22% = 150,000 × 22/100 = 33,000 €.

💡 Note: bonuses/freespins are taken into account according to the operator's rules and within the licensing conditions - it is important that the reflection of bonuses in the reporting does not distort the real GGR.

2) Who is affected by the 22% rate

Online operators: casinos (slots, roulette, cards, live games), sports betting, virtual games.

Ground operators: casinos, bookmakers, slot machine halls.

State operator lotteries are subject to special rules; for private lottery operators, the rate and regime depend on the type of product (in most editions of industry regulation, private lotteries are limited, and numerical ones are in the monopoly of the state).

3) Related mandatory payments and expenses

In addition to 22% GGR for licensees, there are:

Regulatory contributions (monthly/quarterly) to finance the activities of the regulator; a small percentage of revenue is often used online (for example, ~ 0.7% of GGR/commission).
License and administrative fees (for obtaining/renewing a license, for certification, etc.).
Municipal/fixed fees for ground halls and machines (rates are generally regulated separately and are independent of GGR).
Responsible play and compliance: KYC/AML costs, self-exclusion tools, RNG/IGT audit, reporting, integration with monitoring systems.

4) Reporting and compliance

Frequency: as a rule, monthly reporting on GGR and tax payment with established terms of transfer.

Accounting: separate accounting by verticals (betting, casino, live-casino, etc.), storage of session logs/bets/payments, uploads for the regulator.

Technical requirements: connection to regulator control systems, software certification, correct accounting of bonuses and jackpots.

Advertising: compliance with restrictions (protection of minors, prohibition of aggressive practices), labeling of industrial materials.

5) Impact on operator unit economics

The rate of 22% of GGR forms a "box" of profitability and affects:

RTP and margin: balance between product attractiveness (RTP/slash-hold) and margin sufficiency to cover tax and OPEX.
Bonus policy: Promo budgets should consider that tax counts with GGR after payments, but before operating expenses - aggressive bonuses can "eat up" margins.
Payment fees: PSP costs and anti-fraud costs cannot be "deducted" from GGR for tax purposes, so they put pressure on EBITDA.
Product portfolio: live products and highly volatile slots behave differently in NGR→GGR-conversion; a portfolio approach is required.

Mini model:

Let GGR margin = 5% of sales volume; with a tax of 22%, the effective "net" margin to OPEX = 5% × (1 − 0.22) = 3.9% of turnover. Next, PSPs, licenses, regulatory fees, marketing, salaries and infrastructure are deducted.

6) Practical tips for operators

1. Put reporting "on the rails": automate the calculation of GGR by verticals, synchronize the data of payment gateways and the gaming platform.

2. Check out the contract economy: renegotiate with PSPs/providers if the commission eats up margins with the tax burden unchanged.

3. Test RTP/Pools: Optimize your game pool and bonus limits with 22% GGR.

4. Watch for RG metrics: fines and restrictions in case of violations cost more than savings on compliance.

5. Lay reserves: the volatility of winnings (especially in live casinos and betting) affects GGR and cash tax gaps.

7) Frequent questions

Is it subject to VAT? Gambling in the EU is usually exempt from VAT; operators factor this into the price/promotional model, but check for local exceptions.

Can bonuses be deducted from GGR? Depends on the recognition of bonuses in reporting: it is critical to correctly reflect the "value" of bonuses and their impact on payments.

Are there benefits for new licensees? As a rule, no - but differentiated fees and phased licensing payments are possible.

Slovakia uses a single rate of 22% of GGR for online and offline operators, supplementing it with regulatory fees and strict compliance requirements. For sustainable profitability, operators must carefully manage RTP/margin, bonuses, payment costs and reporting quality - then the tax regime remains predictable and manageable.