Price World Cup pool and online gambling up to 454 euros tax-free

There is a lot of betting in our country during major football tournaments. Entire companies focus on the outcome and employees hope to walk away with the prize. But the tax authorities are watching and claiming their share if they know about the existence of the pool. Many people do not know what they can keep and whether they have to pay taxes if they set up a football pool themselves. Or if they participate in another football pool. However, the rules are quite simple: up to 454 euros, no opportunity tax has to be paid. Up there, yes.

Football pool up to 454 euros: no chance tax

If a company sets up a pool where the prize money is more than 454 euros, this must be declared and gambling tax must be paid. If this does not happen and the tax authorities find out, a fine must also be paid, on top of the gambling tax.

What is a game of chance?

The Tax Authorities describe a game of chance as follows: a game is a game of chance when the prize winner is determined by chance. Although someone who knows football has the best chance of winning such a pool, luck can also be with the stupid and someone can win who hardly even knows what a football is. As a result, football pools fall under the Gaming Tax Act. Competitions also fall under games of chance. These could be:

  1. A rebus
  2. A slogan
  3. A television quiz

What is excluded from gambling tax?

Strangely enough, slot machines often fall outside the Gaming Tax Act. Competitions for which people have to deliver or carry out a scientific or artistic achievement, such as research, are also excluded from this gambling tax.

How much gambling tax must be paid on prizes?

If a game of chance is organized by a person, foundation, company or association in the Netherlands, the organizer must withhold 29 percent gambling tax if the prize is higher than 454 euros. This does not only apply to a cash prize. Anyone who wins another prize, such as a trip or a product, must also pay that tax if the value is higher than 454 euros.

Bypassing the Gaming Tax

If you do want to set up a pool, it is best to avoid gambling tax by ensuring that no more than 454 euros is deposited. Anyone who does not do this will have to pay part of the money in taxes.

How do you file a gambling tax return?

If someone has set up a football pool that is higher than 454 euros, a giro collection form must be requested in writing from the Tax Authorities that apply to that location. The gambling tax must be paid within one month after the prize has been paid out. The form contains an explanation of how to complete the declaration and how to pay.

World Cup pool administration

Anyone who files a tax return must also keep complete administration. This must include, among other things, the total amount of the prizes, the date on which the prizes are paid out and the date on which tax was paid.

Taxes do not carry out massive checks, but they do keep an eye on World Cup pools

If the gambling tax is not paid on time or is not declared at all and the tax authorities find out, the tax authorities can impose a fine. It is not the case that the tax authorities only check company websites to see whether a pool has been set up. Nevertheless, checks are carried out. How the tax authorities do this is kept secret.

Online gambling

The same rules apply to participating in gambling games online. Anyone who gambles online for fun and does not win more than 454 euros does not have to contact the tax authorities. Depending on the country where a gambler is located, different rules apply. Gamblers in the Netherlands must give up their winnings. Different rules apply in other countries. Do I pay gambling tax if I win a prize? If you have won a prize worth more than 454, you must pay gambling tax. The tax rate is 29% of the value of the prize. The gambling tax is withheld from the prize.

Stake and probability tax

Probability tax only has to be paid on the amount above 454 euros, but after deduction of the money invested. So if someone has won 1,000 euros but spent 500 euros, on balance nothing has to be paid in chance tax. Incidentally, opportunity tax must also be paid on travel or cars, unless this is already included in the price.