Taxation of operators (Antigua and Barbuda)

Taxation of operators

1) Basic model for online operators (Interactive Gaming/Interactive Wagering)

Antigua and Barbuda have historically applied a 3% tax on net win (GGR) for interactive operators, with a monthly ceiling of $50,000. Net win is interpreted as the gross gain of the operator after payments to players; when the ceiling is reached, no additional tax is charged for this month. This rule is repeatedly described in industry and academic sources analyzing the Antigua regime.

What can be deducted from the base (in practice)

A number of specialized guides and consulting reviews indicate the permissible deductions when calculating net win - for example, chargeback and up to 40% of software/development costs (deduction limit), but this requires confirmation at the compliance stage from the regulator/tax authority.

💡 Important: exact interpretations and spending limits are consistent with the regulator and in the current license conditions. Use the provisions of the contract/license decision plus annual FSRC guidance.

2) Regulatory fees and associated costs

In addition to fiscal tax, interactive licenses are accompanied by license/procedural fees and mandatory reserves under the supervision of FSRC/Directorate of Offshore Gaming:

Application (due diligence): usually 15,000 USD for each license at the submission stage.
Annual license fee: Interactive Gaming - USD 100,000, Interactive Wagering - USD 75,000.
Statutory Reserve: USD 100,000 per company.
Monitoring System Fee: a separate annual fee for connecting to the monitoring system (size depends on the set of licenses; the structure is periodically updated).

FSRC publishes consolidated materials on fee structure and procedures (Schedules A-E, dates, list of documents).

3) Corporate taxes and regimes (outside industry 3% GGR)

Corporate tax (CIT) for local resident companies: typically 25% (flat rate). For planning, it is important to determine where the company is considered "resident" (management/control, source of income, etc.).

IBCs and benefits: registration in the status of International Business Corporation (IBC) can give concession regimes (in particular, exemptions for external income and customs exemptions for "essential equipment"), which is confirmed in the documents of investment guides and in the FSRC infolists (section "Concessions"). Specific benefits depend on the profile of the activity and must be confirmed by the regulator/tax.

ABST (local analogue of VAT/VAT): standard rate of 15% (there are special rates for individual industries, for example, hotels). The applicability to the services of a particular operator depends on the nature of the operations and the place of delivery; tax analysis required.

4) Offline Games & Lotteries: Individual Gambling Act 2016 Bets

For the land sector and lotteries, the Gambling Act 2016 is valid with its own tax/licensing standards (and by-laws of 2020). Typical provisions include taxes on gaming tables/betting providers calculated from player loss/gross result, with monthly payment; the exact percentages and methods of fixation are determined by the law/amendments and regulations themselves.

💡 An example from the 2017 draft law illustrates the approach: for offline, rates of 8% of player loss were offered on gaming tables and 8% for betting providers, with monthly payment (specified in the current version of the adopted act/regulations). Always consult the current version of the law and regulations.

5) What it means for the operator's P&L

Online: the key driver - 3% with net win + ceiling of USD 50,000 per month - limits the progression of the tax burden and facilitates margin forecasting; further - fixed regulatory costs (license, monitoring, reserve).

Offline/lotteries: fiscal architecture is different (rates and bases in Gambling Act), plus local licenses/fees. For consolidated groups with online and offline assets, it is important to separate databases and reporting.

Deductions/expenses: take into account documented write-offs (chargeback 'and, part of R & D/software), but agree on interpretations in advance.

Corporate circuit: residency/IBS status, ABST and cross-border flows - the subject of a separate tax memo.

6) Quick checklist for financial model

1. Lay down 3% GGR with a ceiling of 50,000 USD/month. (seasonally sensitive).

2. Consider annual FSRC payments: license (s), monitoring, reserve, due diligence.

3. Check the possible deductions (chargeback 'and, software up to 40%) and their evidence base.

4. Determine the CIT/ABST applicability with the tax adviser (residence, place of delivery).

5. For offline/lotteries - apply rates and calculations from Gambling Act 2016 and regulations 2020.

Sources and where to update

FSRC/Directorate of Offshore Gaming - official materials on procedures and fees (Schedules, licenses, reserve, monitoring).

Gambling Act 2016 and regulations 2020 - offline/lotteries.

Antigua Academic and Industry Reviews - Historic and current model 3% net win with ceiling.

Antigua mode for online operators relies on a light GGR tax (3% with a ceiling) plus clear regulatory fees and a reserve, and for offline games and lotteries there is a separate betting matrix for Gambling Act 2016. Together, this ensures the predictability of P&L, but requires careful configuration of the structure (IBS/residency), compliance and tax reporting to meet the requirements of the FSRC and fiscal authorities.