(short): Taxes of operators and players (Uruguay)

Taxation of operators and players (Uruguay)

1) The bigger picture

Business taxes for operators. Operators (including casino concessionaires) pay corporate IRAE at a rate of 25% of taxable profits (Uruguayan source annuities). Standard IVA rates are 22% (basic) and 10% (reduced) unless there are benefits/exemptions.

Industry features. For circulation "paper" games, there is an IVA benefit: "games based on tickets/forms" are exempted, except for 5 de Oro/5 de Oro Junior (their base is the bet price).

New special tax (from 12. 08. 2025). A single Impuesto a las Apuestas was introduced: 0.75% of the amount of each bet (cash, chips, electronic funds); holds and lists the operator as a "responsible substitute" in the DGI. Decree 167/025 replaced the old regulation of 2017.

2) Casino and lounge operator taxes

A. Corporate and indirect

IRAE 25% - basic corporate tax on net income.

IVA - applies to taxable services/goods (22 %/10%); for "paper" lotteries - a historical benefit (see below).

B. Special Rate Tax (aka IA) - 0.75%

Object: each bet in casinos/halls (including electronic machines and "automatic" bets).

Rate: 0.75% of the rate amount; payer - player, hold and enumeration - on the operator (responsible sustituto).

Standard: Decree 167/025 (12. 08. 2025) systematized the rules and derogó Decree 359/017 (2017).

💡 Example: UYU 1,000 roulette bet is → withheld by UYU 7.5 in favor of IA; bookkeeping, the operator reflects the deduction and lists it in the DGI in the order established by the tax.

C. Financial and operational aspects

The revenues and distribution of the "casino of the state" (DGC) are regulated by the Ministry of Finance; DGC publishes reports and interacts with DGI on taxes/deductions.

3) Winnings and wagering taxes for players

A. IRPF/IRNR deductions by prize

The La Banca/DNLQ line has a rule: prizes (except for the National Lottery) may be subject to IRPF (resident) or IRNR (non-resident) withholding, according to established thresholds/conditions. La Banca/agency portals have published thresholds and approximate retention benchmarks (e.g. 12% for large prizes). The exact limits are periodically updated.

B. Special charges for "5 de Oro"

Of the winnings, "5 de Oro con Revancha" holds 5% in favor of Fondo Nacional de Recursos (FNR) (the norm in the rules of the game and MEF materials). This is in addition to the IVA mode and possible IRPF/IRNR deductions, if applicable.

C. IA Rate (0.75%)

The IA is paid by the player through the operator's deduction from each bet (not from the win). This is not personal income tax, but a separate indirect tax on the very fact of the rate.

💡 Example: a player placed 40 UYU 500 bets per night → base IA = UYU 20,000, hold = UYU 150 (0.75%). Whether he won or lost - the value does not change the IA amount.

4) Benefits and exclusions (lottery vertical)

The IVA exemption for "ticket/blank games" (except 5 de Oro/Junior) is Ley 16's historical norm. 697 confirmed by TO-2023 consolidations. For 5 de Oro/Junior, the IVA taxable base is the rate price.

5) Online context (for completeness)

Online casinos/poker without special permission are prohibited; advertising illegal online is also prohibited (Ley 19. 535 + Decreto 366/017). This is not about the tax rate, but critical for tax status: illegal online transactions are not recognized and are subject to blocking/sanctions.

6) Quick examples of calculations

1. Casino operator (conditional month)

Revenue (floor level), operating costs → IRAE 25% of taxable profit.

On the hall side, an IA of 0.75% is withheld and listed from each visitor rate.

Regular operations subject to IVA go for 22 %/10% (if not subject to benefits).

2. Player - Lotteries/quiniela

Winnings may fall under the IRPF/IRNR deduction (e.g. 12% for large prizes at local thresholds other than the National Lottery).

3. Player - "5 de Oro con Revancha"

Plus a 5% deduction in FNR from the corresponding "sweat prizes."

4. Gambler - Casino Bets

Each rate is subject to an IA of 0.75% (cash/terminal deduction). Casino winnings may have different tax consequences depending on the form of payment and applicable rules (IRPF/IRNR - for individual cases).

7) What to track in 2025-2026

The practice of applying Decree 167/025: document management procedure, transfer deadlines and DGI control.

Current IRPF/IRNR retention thresholds by prize (updates on La Banca/DNLQ).

Clarifications on IVA benefits in terms of circulation games and exceptions for 5 de Oro/Junior.

Uruguay's tax architecture for the gambling sector relies on general business rules (IRAE/IVA) and special rules for bets and prizes:

IA 0.75% from each bet (operator - withholding), IRPF/IRNR deductions from large prizes (by thresholds), 5% in FNR for "5 de Oro," historical IVA benefit for "paper" lotteries with exceptions for 5 de Oro/Junior.
This combination supports fiscal predictability and transparency for the state, operators and players.

Sources and norms:

IRAE 25% (corporate): Texto Ordenado - Título 4 (DGI/IMPO).
IVA 22 %/10% (general rates): DGI/IMPO.
IVA exemption for "ticket games" and exemptions for 5 de Oro/Junior: Ley 16. 697 (and consolids. materials).
Impuesto a las Apuestas 0.75%: Decreto 167/025 (replaced 359/017); KPMG/Jurassic comments firms.
Prize deductions (IRPF/IRNR) and La Banca references (incl. benchmarks 12% for large prizes): La Banca/agency pages.
5% in FNR by "5 de Oro": rules of the game/MEF publications.
Online prohibition and prohibition of advertising of illegal immigrants: Decreto 366/017 (Ley 19. 535 - base).

Do you need to peer the table "who pays and how much" (operator vs. player) or add step-by-step deduction schemes for the cash register/terminal? I will say - I will do it.