(H1): State revenue from taxation (Bolivia)

1) The bigger picture

State revenues from the gambling sector in Bolivia consist of licensing fees and regulatory payments (in favor of Autoridad de Fiscalización y Control Social del Juego - AJ), as well as taxes paid by operators under the general tax regime and special rules for gambling and lotteries. The industry tax base is usually built around gross gaming revenue (GGR) and the results of draws/promo draws, followed by a "superstructure" - income tax, VAT/similar regimes, withholding and municipal fees (where applicable).

2) Sources of government revenue from the industry

A. AJ Regulatory Payments

Licensing and renewal: one-time and periodic payments for permits (site, assortment of games, equipment; for online - a separate circuit).

Technical control and inspections: fees for certification/registration of software and equipment; fees for scheduled/unscheduled inspections.

Administration of promotional draws: permits/notifications covering control costs.

B. Gambling-related taxes

GGR/Gross Gaming Revenue Taxes: Based on the difference between bets and prizes paid by product (slots/tables/bets/online casino/bingo).

Taxation of lotteries: the share of the prize fund is approved by the regulations; the remaining part is taxed in accordance with the procedure (operating/target deductions).

Promotional lotteries (tombolas): individual fees and/or taxes on the value of prizes; transparent protocols for selecting winners.

C. System-wide operator taxes

Income tax (CIT): on the financial result after taking into account industry fees and allowable expenses.

VAT/indirect: applicability depends on the type of services and benefits/exceptions; for gambling services around the world there are special accounting regimes; in Bolivia, one should be guided by the current explanations of the tax service.

Personal income tax/social contributions: from the salaries of employees of halls/online divisions.

Withholding: under contracts with suppliers (content, PSP, affiliates) - in cases provided for by law.

Municipal fees: signage/advertising permits, city fees (if set locally).

3) How GGR counts and why it matters

GGR = Bet Amount - Amount of winnings paid (per product/channel). Correct calculation and separate accounting are the key to a transparent tax base:

Separate offline (slots, tables, bingo) and online (slots/live/bets).
Separately, take into account jackpots (seed/savings/payments) and bonuses (expenses, breakage).
Record canceled rates and canceled runs according to regulations.
Keep registers of software versions and a log of changes - for reconciliation with the AJ inspection and tax.

4) Online: optional "add-on"

For a digital channel (with separate AJ resolution), add:

e-KYC/AML/KYT and transaction logging;
approval of reporting formats (rates/payments/bonuses/complaints);
requirements for data protection and log retention;
AJ consistency ↔ accounting GL ↔ PSP/providers - target match threshold ≥ 99.5%.

5) The impact of taxes and fees on the operator's economy

Marginality: industry fees and taxes on GGR reduce dirty margins; profit depends on the efficiency of the slot fleet, the loading of tables, the discipline of bonuses and PSP costs.

Capital plans: decisions on updating equipment, expanding halls or launching live content are made taking into account the tax burden and possible benefits.

Pricing and promotion: bonus policy should take into account the impact on the tax base and GGR reporting.

Cash flow: the frequency of payment of industry payments and taxes affects liquidity; accurate cut-off and calendar are important.

6) Control and Reporting: What AJ and Tax Watch

Daily/monthly uploads: bets, payouts, bonuses, jackpots, complaints (breakdown by product/channel).

Equipment inventory: serial numbers, firmware, sealing, service logs.

Promotional draws: protocols, audit of the prize fund, confirmation of communications 18 +/RG.

Lotteries: draw plan, ticket issue reports, share of prize pool, unclaimed winnings.

Reconciliation of registers: AJ ↔ accounting ↔ PSP tax ↔/providers.

7) Until 2030: Three scenarios for state revenue from the sector

Scenario	What changes	Effect on budget
Basic	Stable offline fees + point growth online	Smooth growth in GGR and system-wide tax revenues
Optimistic	Payment upgrade, orderly online resolutions, rise in mobile rates	Acceleration of income growth, better collection due to reporting
Conservative	Restrictions on payment/advertising, slowing down CAPEX	Stagnating revenues, shifting competition towards UX/payouts without base expansion

8) Transparency and collectability KPIs (benchmarks)

Direction	Reference point
Consistency of AJ ↔ GL ↔ PSP	≥ 99,5%
Percentage of reports submitted on time	100%
GGR discrepancy by channel (post-recon)	≤ 0,5–1,0%
Share of "clean" promos (without additional charges)	≥ 98%
Response time to inspection request	≤ 10 slave. days
Compliance Incidents (Crete) 0/quarter

9) Operator's checklist (taxes and fees)

Before start-up/extension

AJ license status checked (site/online/lottery/promo).

Approved methods for calculating GGR and posting bonuses/jackpots.

Set up uploads for AJ and tax; cut-off agreed.

Tax & legal audit of contracts with providers, PSP and affiliates was carried out.

Log retention policy and inspection access are documented.

In a monthly routine

Daily AJ ↔ GL ↔ PSP/ISP reconciliations.

The register of promotional draws (T&C, prizes, protocols) is in order.

Inventory of equipment/software, version and seal log.

Lottery reports: issue, sales, unclaimed winnings.

Advertising creative archive (18 +/RG), media plan and expenses.

10) Frequent mistakes - and how to avoid them

1. Mixing bonuses with revenue → keep separate registers: accrual, wagering, write-off.

2. Opaque jackpots → document seed/accumulations/payouts; publish the rules.

3. Different software versions without registration → keep certificates/release notes, notify AJ.

4. Promo without permission → submit notifications in advance, keep protocols for choosing winners.

5. Discrepancy in dates and time zones → a single server hour, fixed cut-off.

6. Weak document flow with PSP → acts/registers, reasons for failures, chargeback reports, SLA tables.

11) Mini-FAQ

Will players pay taxes on winnings?

For large winnings, withholding at the source and documentary identity checks are possible - focus on the current norms and payment regulations.

How are unclaimed prizes counted in lotteries?

According to the approved rules of procedure: reserve/special funds/budget - they are reflected separately in the reports.

Is VAT applied to gambling services?

Depends on current rules and possible exceptions for specific products. Operators need an up-to-date tax memo and coordination with accounting.

Online and offline are subject to the same model?

The principle of the base (GGR) is general, but the reporting and control procedures differ; online requires e-KYC/KYT, logging and separate AJ resolution.

12) The bottom line

State revenues from the Bolivian gambling industry are generated by a combination of AJ regulatory fees and GGR/profit/transaction taxes, supplemented by rules for lotteries and promotional draws. For the operator, stability is achieved through three supports:

(1) correct and separate accounting of GGR, bonuses and jackpots;
(2) perfect reporting and synchronization of AJ ↔ GL ↔ PSP;
(3) compliance discipline (licenses, promotions, inspections).
So the industry remains transparent to the state, and business is predictable and sustainable until 2030.