State taxes and revenues (Nicaragua)

State revenue from taxation (Nicaragua)

Key in two lines

Tax and quasi-tax revenues are formed from deductions from prizes/draws, general taxes (IR/IVA) and state lottery contributions; the offline gambling sector itself is regulated by Ley Nº 766 and its Regulation 06-2015 under the supervision of the Ministry of Finance (MHCP).

Goslotereya in 2024 transferred $344 million to social programs - this is a visual part of the "game" money that gets into public finances.

1) Regulatory framework: who controls what

Offline casinos and halls: special law Ley Nº 766 + Decreto 06-2015 (regulation), where the MNSR/Casino office acts "autoridad de aplicación." This is the basis for permits, inspections and general fiscal responsibilities of operators.

Financial compliance and reporting: under Ley 977, casinos are classified as "entities obligated" (KYC/AML, data transfer to UAF). This is not a "tax," but an important channel for controlling cash flows.

2) Deductions from prizes and special norms

2. 1. Historic 10% bet for raffles/reef

There is a 10% deduction from each prize for draws/riffs held in the country, with the amount of winnings from C $5,000 and above (Ley N ° 550, 1960). This is the "classic" norm for prizes of this type.

2. 2. Intersection with Total Income Tax (IR)

The Income Tax Framework Act (Ley 453 as amended by Ley 712) classifies premiums/winnings as IR subject to a final withholding rate (for non-residents, 20% on Nicaraguan source income; for residents - by scale/category, according to the applicable rules). Also, benefits for small winnings are fixed (the threshold of benefits in historical editions is C $25,000).

2. 3. Lottery: Taxes and exemptions

The Regulations of the National Lottery historically stipulate that the products of the Lottery are state income, and the Lottery itself as an institution was exempt from fiscal/municipal taxes; at the same time, the winners may have deductions in accordance with general tax standards and applicable explanations.

3) IVA (VAT) and other "general" taxes around the casino

IVA (VAT) - 15% as total GST in Nicaragua (created by Ley 453; administered by DGI). It affects services around casinos (F&B, accommodation, entertainment services) as well as procurement/contracting chains.

Profile publications and reports sometimes mention the taxation of individual payments for prizes (threshold/rate), but this requires verification against the current DGI/MHCP database at the time of the operation (an example of news interpretation for 2024 is the application of 15% to part of prizes over C $50,000). This thesis should be verified in a specific case, since discrepancies are recorded.

4) Goslotery as a visible channel of income

At the end of 2024, Lotería Nacional announced the historical volume of transfers to social programs - C $344 million (including an additional December contribution). This is a direct and publicly confirmed "game" line that increases social budgets.

Earlier it was reported about regular overfulfills of plans and additional payments for programs (confirmation through industry and official publications).

5) What about casino and online revenue

5. 1. Offline casino

Direct casino GGR/tax figures are not openly consolidated by the state, however, the legal framework (Ley 766/06-2015) assumes a licensing and inspection regime under the MHCP, plus the effect of general taxes and withholding where applicable.

5. 2. Online

There is no separate local B2C license for online operators; accordingly, there is no onshore tax base/register for their gross revenue - this narrows the official budget revenues from online. Control shifts to AML/payment perimeter (UAF, Ley 977).

6) What makes up the "game" money funnel to the budget

1. Draw/Reef Prize Deductions (10% with ≥ C $5,000 - base rate) and/or IR Deductions on relevant resident/non-resident items.

2. General taxes/fees around operating activities (IR, IVA 15% for related services, supplier fiscal payments).

3. Transfers of the National Lottery to social programs (direct transfers).

4. License and regulatory payments (as part of the Ley 766/06-2015 regime) - details and dimensions are indicated in permits/by-laws, administered by the MNSR/Casino Office.

7) "White spots" and how to work with them

Casino statistics (number of jobs, GGR, gross income tax) in the public field are fragmentary. To assess the macro effect, it is useful for analysts to combine: lists of objects/fleet of cars, Lottery reports, as well as tourism data, which includes part of the evening demand (bar/hotels/entertainment).

The online segment remains "outside the perimeter" of national statistics (there is no local license → there are no direct onshore taxes). This limits the fiscal effect, despite real consumer demand.

8) What could boost receipts (practice 2025-2027)

MHCP proactive reporting on the offline market (summary figures for sector payments) - will strengthen revenue forecasting.

Online chapter for Ley 766 (B2C/B2B licensing, GGR tax, advertising, RG, payment rules) - will transfer part of the "gray" turnover to the onshore base. (Regulatory logic has already been worked out in neighboring countries; see related batch materials.)

Uniform rules of deductions for prizes with explanations DGI/MHCP (threshold, rate, combination with IR) - will reduce discrepancies in practice and improve administration.

Today, the most visible are transfers of the Lottery (C $344 million in 2024) and deductions from prizes under special and general tax standards. Offline casinos operate in the Ley 766/06-2015 field and contribute their share through general taxes and permissive regime, but without public "consolidation" of amounts. Online without a local license - lost onshore income. Expanding transparent reporting and introducing a full-fledged online regime are the main reserves for the growth of fiscal revenues from Nicaragua's gambling ecosystem.

• Ley Nº 766 and Regulation 06-2015 (MNSR/Casino Office); Ley 977 (UAF, obligated entities); norms on deductions from prizes (Ley 550; parts Ley 453/Ley 712 to IR); Lotería Nacional 2024 enumeration data; IVA reference (15%).

Relevant for October 09, 2025.