Taxing winnings for players (Belize)

1. General tax environment of Belize

Belize is traditionally considered one of the most privileged offshore jurisdictions in Latin America and the Caribbean. The country's financial policy has historically been aimed at attracting foreign investors, IT companies, online business and gambling operators. This is reflected in the tax regime in the field of gambling:

no capital gains tax;
there is a simplified model of taxation of offshore companies;
no taxes are levied on income earned outside Belize.

For players, this means that gambling winnings are not subject to a separate tax at the individual level when it comes to offshore online casinos or licensed operators operating in the international market.

2. Taxation of individual winnings

At the moment, there is no separate tax on gambling winnings in Belize. This means:

Residents of Belize who play land-based casinos are not required to declare and pay tax on winnings.
Non-residents who win in Belize (such as tourists or online gamblers) also do not face state-level tax withholding.
Revenues from foreign online casinos are not subject to taxation in Belize if the player does not conduct permanent business in the country.

It is important to note that, unlike the United States, Canada or a number of European countries, Belize does not have a progressive tax on winnings - they are equated with ordinary income or are not taken into account at all in the tax base.

3. Taxes for operators and their indirect impact on players

Although players are not directly taxed, the casino operators themselves bear a tax burden that can be partially embedded in their business model:

Licensed companies pay an annual license fee and taxes on profits earned in Belize.
International companies registered as International Business Companies (IBC) are exempt from tax on income earned outside the country, making Belize a popular jurisdiction for hosting online casinos.
Some operators include deductions for cross-border transfers (usually 1-3%) in the payment rules, but this is not a tax levied by the government.

Thus, the operators' tax burden is minimal and does not directly affect the amount of winnings paid to players.

4. Exceptions and potential risks

Although Belize does not tax winnings, there are situations in which players may face tax consequences:

Taxation in the country of residence: If a player lives outside Belize, their country may require the declaration and payment of tax on the winnings, even if received in Belize.
Regulatory checks: For large wins at land casinos or international transfers, KYC/AML source of funds and procedures can be checked.
Changes in legislation: within the framework of the upcoming Gaming and Lotteries Control Bill, 2025, the issue of introducing a minimum tax on large winnings is being discussed, but the final version of the law has not yet been adopted.

5. Forecast for the future

The Belizean government plans to reform the gambling industry, including taxing operators. Some deputies were in favor of introducing a fixed tax on large winnings (for example, over 100,000 BZD), but at the time of 2025 this issue is under discussion.

The main scenario for the next 2-3 years:

maintaining the current liberal model for players;
possible increase in licensing fees and tax burden for operators;
strengthening financial monitoring in cross-border transfers.

Belize remains one of the most favorable jurisdictions for gamblers and gambling operators in terms of taxation.

Players pay no tax on winnings, regardless of their size and source.

The main tax burden falls on operators, but it also remains minimal.

Possible legislative changes in the future are unlikely to lead to a radical increase in taxes for players, although monitoring of large payments and AML/KYC procedures will increase.

Conclusion: Belize is a "tax paradise" for gamblers, where the winnings remain at the full disposal of the winner, and state regulation is aimed primarily at controlling operators, and not at taxing users.