Torrent Gear

Taxation of operators (Grenada)

1) Regulatory framework and who pays taxes

Functional frame for sector is set by:

Gaming Act 2016 (does not apply to casino gaming, which is brought into a separate law of 2014; act "binds" and NLA), Casino Gaming Act 2014 (casinos are allowed only in hotels/resorts with 300 + rooms), Gaming Regulations SRO 48/2016 (license forms and operating conditions).

The tax administrator is the Inland Revenue Division (IRD), which publishes Gaming Tax rates and other fiscal rules.

2) Special game tax (Gaming Tax): IRD bets

Official rates for calculating Gaming Tax:

Slot machines (halls): 30% of gross revenue (GGR) or EC $250 for each machine - which is more. (Note IRD: The minimum "per machine" payment does not apply to machines used for e-gaming.)
Betting (except pool betting): 30% of gross revenue.
Pool betting: 30% of gross receipts.
Lotteries (commercial promoters other than non-profit/municipal): 25% of gross receipts.

💡 Important: NLA is a state lottery operator operating on the basis of a separate act; for private lotto initiatives, the above rates/modes apply.

3) State-wide taxes that affect operators

Corporate income tax (CIT): base rate of 28% (for resident companies - from world income; for non-residents - from income from sources in Grenada).

VAT: standard rate of 15% on taxable supplies/services (with exceptions by law). For operators, there may be an obligation to register as a VAT payer, taking into account the thresholds and type of services.

Other modes: the general Income Tax Act standards for determining profit, accounting for expenses, etc. are applied (for the correct CIT base).

4) Taxation of winnings from players (note to operators)

Since March 1, 2023, Grenada has held 15% with game wins over EC $10,000. This is a tax on the player's side, but draw operators/managers are often involved in administering and informing winners.

5) Licenses and taxes: how it fits with the laws

Gaming Act 2016 establishes the area of responsibility of the Gaming Commission and categories of permits (including machines, lotteries, e-gaming in the sense of "electronic forms"), and SRO 48/2016 contains license forms and operating conditions. The tax part (GGR rates, etc.) is administered through IRD under the Gaming Tax.

Casino Gaming Act 2014 regulates casinos in large hotels; for such projects, general corporate/indirect taxes and any special payments prescribed by the license/conditions (details are agreed upon when issuing permits) shall apply.

6) Calculation examples (simplified)

A) Stand-alone - 50 cars

Gross revenue (GGR) for the month: EC $300,000.

Gaming Tax at 30% GGR: EC $90,000.

Alternative "minimum per machine": 50 × EC $250 = EC $12,500.

More ⇒ EC $90,000 (not EC $12,500) is charged.

B) Bookmaker (fixed odds)

GGR for the month: EC $200,000.

Gaming Tax = 30% × EC$200 000 = EC$60 000.

C) Commercial Lottery (not NLA)

GGR for the month: EC $100,000.

Gaming Tax = 25% × EC$100 000 = EC$25 000.

💡 After payment of Gaming Tax, the company's profit is additionally subject to a CIT of 28% at the end of the tax period (taking into account allowable expenses), and for taxable deliveries - VAT obligations of 15% are possible. Specific base and accounting - by Income Tax Act.

7) Practical notes for operators

GGR accounting and reporting. Transparent journals, cash discipline, revenue sharing by product (machines/betting/lotteries) and timely filing of declarations with the IRD are required.

E-gaming ≠ "national online license." SRO 48/2016 forms contain "E-gaming Operating License," but these are electronic forms of gaming, not a full-fledged remote B2C online mode. The actual tax is determined by the economy of operations in Grenada and the place of delivery of services.

Casinos in 300 + hotels. For such projects, the payment structure may include specific license conditions + general taxes (CIT, VAT), but Gaming Act 2016 itself does not apply to casinos.

NLA and private lotteries. The National Lottery works according to its own law; for private promoters, Gaming Tax 25% GGR applies. Check if your draw falls within the scope of the NLA.

Winnings tax. Set up procedures to inform and withhold/document 15% of large winnings (if you are involved in payouts).

8) Frequent Questions (FAQs)

What is the tax rate for slot machines? 30% GGR or EC $250 per machine - which is more.

What is the betting rate for betting? 30% GGR (including pool betting).

Is there VAT? Yes, standard 15% on taxable transactions; registration and administration - according to general rules.

Corporate tax? 28% on profit (resident/non-resident - by source of income).

A tax on player winnings? 15% for EC amounts of $10,000 +.

Sources

IRD Grenada - Gaming Tax (official bets): machines, betting, pool betting, lotteries.

Gaming Act 2016 (application, exclusion of casinos; NLA covered): primary source.

Casino Gaming Act 2014 (casino only for hotels/resorts with 300 + rooms): primary source.

Gaming Regulations SRO 48/2016 (license forms, conditions): primary source.

National Lotteries Authority Act (NLA status).

Corporate tax & VAT reference (28% CIT; 15% VAT).

15% winnings tax (from 2023) - news/communique.