Question about Curaçao-licensed casinos (Mainly for European affiliates)

[betteri]

Hi guys!

I'm confused about the taxation of Curacao casinos and bookers. In my market (Europe), it's been common knowledge that casinos under MGA, Estonian or Cyprus license are tax-free and Curacao sites are not because Curacao is not part of European economic region and the other ones are.

However nowadays I've noticed that many Curacao sites tell their license info like this (click the image):




What does the second paragraph mean? They have a payment management company in Cyprus, which indeed is a part of European economic area? So would that be affecting taxation or why they seem to have more and more arrangements like this?

[GPWA Maria]

Morning Batteti,

That must means that the company which manages the financial side of things for Rabidi N.V. is registered in Cyprus and perhaps they also have an office in Cyprus.

[betteri]

Hi Maria!

Thanks, yes, that's what I figured. However, what I'm thinking is, is that their way to somehow go around taxation stuff? Like if the payments are ultimately coming from Cyprus, would that possibly mean they're tax-free since the money is moving from EEA-country to another? Or otherwise why they're doing it like that?

[GPWA Maria]

Hi Maria!

Thanks, yes, that's what I figured. However, what I'm thinking is, is that their way to somehow go around taxation stuff? Like if the payments are ultimately coming from Cyprus, would that possibly mean they're tax-free since the money is moving from EEA-country to another? Or otherwise why they're doing it like that?

Not sure about that, but the taxation for companies here is lower.

[wonderpunter]

it's not so much about the taxation but many payment providers (ewallets, credit cards etc) will only work with EU based companies, hence the pay agent.

[betteri]

it's not so much about the taxation but many payment providers (ewallets, credit cards etc) will only work with EU based companies, hence the pay agent.

I see. However would that have impact on taxation as well? If casino operates under Curacao license but payments are handled by European company. (I guess not but hey you can ask)

[goldcity]

How your affiliate income is being taxed depends on the country where you live and/or where your company has its main office. The best way to clarify this is contacting a tax consultant.

[betteri]

How your affiliate income is being taxed depends on the country where you live and/or where your company has its main office. The best way to clarify this is contacting a tax consultant.

Hi. Thanks for your reply and sorry about the confusion – I meant taxation for players.

[goldcity]

Hi. Thanks for your reply and sorry about the confusion – I meant taxation for players.

Sorry, I'm confused now, too. Why should players pay tax on their deposits? Or do you talk about players gains? Whether casino/gambling gains are taxed is also different from country to country where the player resides.

[betteri]

Not on deposits obviously, but on winnings.

And yes, but my players all reside in the same country (my country). Traditionally winnings from Curacao-sites have been taxable for European players, but I'm wondering if some of the casinos would've found a way to go around this and pay taxfree winnings by using some kind of payment agency which is located in European economic area. This could be huge for me as I could promote those as taxfree sites and other affiliates still think they're taxable.