Crypto Casino
Torrent Gear
Operator Taxation and Licensing (Bahamas)
1) Legal framework and regulator
System support - Gaming Act 2014 plus Gaming Regulations 2014 and separate Gaming House Operator Regulations 2014 (for the domestic segment, the so-called web-shops). The oversight is carried out by the Gaming Board for The Bahamas.
2) Types of licenses (resort casinos)
For resort operators provided:- Gaming license (casino), Proxy gaming license, Mobile gaming license, Restricted interactive gaming license (online/mobile in conjunction with a land casino and under certain restrictions), Licenses/certificates for employees, suppliers, junket representatives, etc. (with fixed application and annual amounts in regulations).
Examples of regulations (application/renewal): key employee, gaming employee, suitability for financial interest/suppliers/IT labs - specific amounts are indicated in chapters 178-184 of Gaming Regulations 2014.
3) Basic tax and gaming tax for casinos
Basic tax - annually, by the area of the hall:- Payment - 6 equal contributions: January 31 and further on the last days of the months.
- up to $10 million - 10%, over $10 million - $1 million + 15% of the amount over $10 million.
- up to $10 million - 25%, $10-16 million - $2. 5 million + 20% over $10 million, $16-20 million - $3. 7 million + 10% over $16 million, over $20 million - $4. 1 million + 5% over $20 million
Interactive/mobile/proxy (as part of the casino): fixed 5% of Adjusted Gross Revenue, accounted for separately from ground revenue.
Tax period: calendar month.
4) Domestic segment (web-shops): taxes and deposits
Gaming House Operator Regulations 2014 install:- Gaming tax: The larger of
11% of taxable revenue, or
25% of EBITDA for the tax period.
Delay penalty: 10% of the tax amount for each week started, but not more than double the amount of debt.
Cost recovery deposits: $100,000 (operator), $30,000 (premises), $15,000 (agent), $2,000 (key employee), $1,000 (gaming employee), etc.
Tight reporting regime and audit (monthly/quarterly reports, annual audit).
5) VAT and other taxes/charges relevant to the operator
VAT in the country: 10% (from January 1, 2022; the system has been in effect since 2015). For operators, this affects the procurement part (goods/services costs, CAPEX/OPEX), exported services - zero/exempt rate according to general rules.
Game operations and VAT. Historically, it has been discussed that "taxing VAT from above" would create a double taxation effect; the VAT tour guide states that casino-related costs may have deduction limits, and a number of intra-group casino deliveries are exempt - that is, gaming activity usually does not form a standard VAT deduction like a regular merchandise business. Check current Department explanations on VAT.
Income tax. There is no classic CIT; from the end of 2024, Domestic Minimum Top-up Tax (Pillar Two, 15%) was introduced - only for MNG with revenue ≥ €750 million (two out of four years). As a rule, a small/medium local operator does not fall under this mode.
6) Terms, payment procedure and control
Basic tax casinos - six equal payments during the year (special order - when opening after January 31). Gaming tax (casino/interactive/mobile and web-shops) - monthly; reporting and audit are spelled out in the regulations.
Penalties and sanctions for web-shops - 10% per week of delay (cap - x2 debt). Similarly, the casino has an administration and enforcement mechanism through the Gaming Board.
7) Discussion about "equality of bets" between casinos and web-shops
The press periodically raises the question of the convergence of the fiscal burden of resort casinos and web-shops (the contribution of the latter is estimated as "two-thirds" of the sector's tax revenues). This is the context of public policy, but the rules of procedure mentioned above remain the starting point for calculations.
8) What to consider for investors and content creators
1. The exact definition of "taxable revenue/AGR/EBITDA" for the selected license (casino vs. interactive/mobile vs. web-shop) is different bases and rates. Primary text Gaming Regulations 2014 and Gaming House Operator Regulations 2014.
2. HOA clauses for large resorts may affect the economics of the project, but do not eliminate "standard" payments explicitly marked as payable over the HOA.
3. VAT 10% - check the applicability of deductions/exemptions for profile guides (especially for mixed hotel-casino structures).
4. Pillar Two (DMTT) is relevant for global groups with turnover ≥ €750 million. Local projects are more often outside the coverage area.
Key references to regulations and official sources
Gaming Regulations 2014: base tax, gaming tax scales, 5% for interactive/mobile/proxy, application/renewal fees, monthly tax period; guidance on HOA.
Gaming House Operator Regulations 2014: tax formula max (11% of revenue; 25% of EBITDA), due diligence deposits, reporting, 10% penalty/week.
Gaming Act 2014 (consolidated text).
Taxation Rates (Gaming Board page - basic tax payment schedule).
VAT: review and rate of 10% (Ministry of Finance/Inland Revenue) + FAQ on the transition to 10% from 01. 01. 2022; industry clarifications on hotels/casinos.
Pillar Two / DMTT (PwC Bahamas).
The Bahamian model combines a rigid licensing architecture and transparent fiscal rules for different segments (casino resorts vs. web-shops). For casinos, the key is the base area tax + progressive gaming tax and a separate 5% for interactive/mobile/proxy. For web-shops - the formula "11% of revenue or 25% EBITDA - which is more" plus tangible deposits and strict reporting. On the "add-on" - VAT 10% (with deduction features for casino activities) and targeted Pillar Two for large MNEs. This design provides predictability for investors, and the regulator - controllability and compliance control.