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Gambling winnings over 40,000 kn, regardless of them being a lottery or betting proceeds, will soon be taxable.

The final draft of the law on gambling from the Ministry of Finance suggested that all winnings between 40,000 kn and 1 million kunas should be taxed 15, and 20% for winnings above 1 million kunas. On Tuesday at the Economic and Social Council (GSV) assembly, these regulations received support of the Union and employers. Minister Ivan Šuker pointed out that the law will come into force starting October 1st, if this proves to be sufficient time for the companies to adapt to the new law. On the other hand, if more time is required, enforcement will have to wait until the beginning of next year. The law will contain new regulations affecting the gaming industry. It will open possibilities for organizing gaming over the internet, telephone and other interactive communications devices which was illegal in Croatia. Gambling companies that decide to include internet betting services will be liable to pay a yearly state fee of three million kunas, while all other gambling companies will pay a one million kuna fee. In order to control these internet transactions, the Ministry of Finance will have direct access to the system. Online betting companies will have to be registered in Croatia. The law will prohibit foreign betting companies from organizing betting on the territory of Croatia. Since games of fortune, according to the EU regulations are not taxable, the law will introduce a unique tax rate of 10% on the total value of all lottery tickets sold. Gamers will have to get used to calculating and paying out taxes on winnings, since they will be responsible for transferring the taxes.