How is the taxation of winnings by country

In a nutshell

In many Anglo-Saxon countries (Great Britain, Canada, Australia), the player does not pay personal income tax on winnings - taxes are imposed on the operator's side.

In the US, any winnings are taxable income; there are forms of W-2G and withholding for large amounts.

In the EU, approaches vary: Spain taxes winnings as income (with thresholds and offset losses), Germany/Italy focuses on taxes for operators (the player usually does not pay), Poland applies deductions for bets/lotteries and discusses tightening.

In the Eastern Europe/CIS region: Ukraine - retention of 18% of PDFO + 5% of military collection at source; Georgia - 5% when withdrawing funds, Belarus - withholding from the organizer (including 4% at rates), Kazakhstan - general IPN rates are low, but the emphasis is on operator taxes.

Brazil (2024/25): 15% from net fixed odds bettors; holds the operator.

Quick Matrix for Players (2025)

Country	Player tax	Threshold/rule	Who holds
USA	Yes	Any winnings are taxable; for individual amounts - W-2G and standard deduction of 24%	Casino/operator at thresholds; further - the player in the declaration
Great Britain	No	Winnings are not taxed by an individual	—
Canada	Not usually	Lotteries/casual play - not taxed; "professional activity" may be subject to	—
Australia	Not usually	If not recognized "prof. player"	—
Spain	Yes	Tax on the amount of winnings (there are thresholds/rules; losses are credited within the winnings); lotteries> thresholds - separate rate	Player (IRPF Declaration )/Lottery Deductions
Italy	Usually not at the player	Tax burden - on the operator; special modes and holds for certain types	Operator/Hold by Game Type
Germany	Usually not at the player	Budget revenues - from the "tax on bets/game" from operators	Operator
Poland	Yes (by species)	Winnings deductions (bets/lotteries), bet changes discussed	Operator organizer
Ukraine	Yes	18% PDFO + 5% military fee (withholding at source)	Operator (tax agent)
Georgia	Yes	5% when withdrawing funds from an online account	Operator holds on payment/withdrawal
Belarus	Yes	On bets - 4% from winning; for other games - other modes, operator retention	Operator organizer
Kazakhstan	In general, there is no uniform personal income tax on winnings	Players have general rules of IPN; key load on operators; from 2026 for gambling, CIT rises to 25%	-/business tax operator
Brazil	Yes	15% of net bet winnings (including annual non-taxable minimum)	Operator holds IRRF

💡 Note: some jurisdictions have different rules for non-residents (increased rates/fixed deductions). Clarify under double taxation treaties.

Key Win Tax Models

1) "The player does not pay, the operator pays"

This is how it works in the UK, Canada and Australia: the player retains the entire winnings, and the tax model is shifted to the gaming duty/operator taxes level. This reduces friction on the player's side and maintains a high level of "sewer" into the white segment.

2) "Player income = taxable base"

USA and Spain: winnings are taxable income. In the USA - mandatory declaration, for large winnings - the form of W-2G and retention of 24% at the source, in Spain - inclusion in the IRPF database (with nuances in lotteries and the right to offset losses within the winnings).

3) "Mixed/Special Modes"

Ukraine: income in the form of winnings - the object of taxation, the operator holds 18% + 5% of the military fee.

Georgia: from 2024-2025, the tax on the sector was increased and 5% of the player's withdrawal amount was introduced.

Belarus: at rates valid 4% from winnings, deduction from the organizer; for other vertical - fixed and mixed modes.

Brazil: 15% IRPF on Fixed Odds Player Net Prize effective 2024/25; holds the operator during payment/settlement.

Important nuances and pitfalls

1. Threshold and moment of retention.

In the US, 24% retention does not always work (depending on the type of game and amount); in Spain, lotteries are subject to a separate scale/thresholds. In Georgia, the tax is taken at the withdrawal of funds, and not at every win.

2. Prof. player vs. amateur.

In Canada/Australia, "ordinary" winnings are not taxed, but systematic professional activity can lead to taxation as a business.

3. Non-residents.

Often there are increased/fixed rates and other forms of withholding (for example, US practice for a non-resident). Review tax agreements and reporting forms.

4. Regional shifts.

Ukraine raised the "military fee" to 5%, which also affects winnings.

Poland is discussing expanding and raising deductions with winnings.

Brazil has unified 15% IRPF for betting players, and the operator pays 12% GGR.

Memo to player and affiliate

Check: who is the tax agent (operator holds/does not hold).

Track thresholds (US W-2G; thresholds of Spain/lotteries).

Record transactions and wins - this helps with declarations and settlement of losses (relevant in the USA/Spain).

Conclusion ≠ winning: in a number of countries, tax is taken upon withdrawal (Georgia).

Non-residents - check retention rates and double tax treaties.

Frequent scenarios

"I won $2,000 in Las Vegas - what about taxes?"

Report in revenue (Schedule 1 to 1040). W-2G may not be issued, but the obligation to declare is. Losses can only be written off within winnings (and with itemize).

"Winning a UK online casino - should you pay?"

No, for a resident player, winnings are not subject to personal income tax.

'Winning the Spanish Lottery'

Amounts in excess of the established threshold are subject to special rates; other winnings - in the IRPF database, with the right to offset losses to the value of the winnings.

"Ukraine: Online Winnings"

Operator will withhold 18% + 5% on payment; it is not necessary to declare separately if the hold is made correctly.

"Brazil: Sports Betting"

15% with net annual result (including non-taxable minimum); is retained by the licensed operator.

Disclaimer

The material reflects public norms and explanations as of October 24, 2025. A number of countries have special regimes for non-residents, professional players and certain types of games. For complex cases (large prizes, cross-border, non-resident status), consult your local tax advisor.