Albania: Income tax implications following changes to gambling laws

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Albania: Income tax implications following changes to gambling laws

Sponsored by

Eurofast Albania
intl-updates-small.jpg

The Albanian government approved a series of changes to gambling laws on October 25 2018, which are effective from January 1 2019. This will have wide-reaching effects considering the gambling industry is the second largest employer in Albania after the energy sector.

Sports betting and slot machines will be closed from December 31 2018, and will only be available online. The only gambling activities that will be allowed to continue operations will be gambling at casino resorts and large hotels in residential areas, playing bingo games on television, and the national lottery.

Furthermore, details regarding the suspension of the Albanian Gambling Supervisory Authority (GSA) has been published, due to its restructuring.

Most importantly, the new gambling law will affect income tax revenues as well as employment. The government considers these effects irrelevant when compared to the negative social effect of gambling and the high risks associated with money laundering.

The gambling industry's turnover in 2018 was around €130 million ($147.3 million), an amount which should be taken with a grain of salt as the GSA estimates that the declared income from this sector is less than a half, with the other part remaining unofficial. The effect in state income would be a decrease in the revenue from tax on gambling of around €40 million.

Sports betting has become an undisputable social phenomenon in recent years. It is estimated that Albania – a country of 2.8 million people – is currently home to more than 4,000 sports betting locations all over the republic. The spread of the gambling industry has caused concern about its impact on low-income families.

more across site & shared bottom lb ros

More from across our site

India also brokered its first-ever multilateral APA last year, the Central Board of Taxes announced
A global tax framework may not materialise anytime soon, but a common set of principles is becoming increasingly necessary, Rudolf Winkenius also tells ITR
Kingsley Napley’s claimants are arguing that taxing the provision of education breaches the European Convention on Human Rights
While pillar two can progress without the US, it won’t reach the same heights without American involvement, argues Renáta Bláhová, founding partner of BMB Partners Taxand
There are unanswered questions as to how foreign investors could reclaim money via tax credits, advisers suggested
Amid an ever-changing tax environment, India’s advisory market is bustling with competition ahead of the 2025 World Tax rankings and ITR Awards
The deal comes after PwC had accused Paul McNab of using confidential information; in other news, McDermott hired a new London tax head from a US rival
Looking at transfer pricing simplification is “obviously helpful”, but it should be done in line with current standards, a senior government figure reportedly said
The UK Government’s plans to close the tax gap via increased HM Revenue and Customs investment have failed to impress local tax advisers
Under the merged scheme for R&D tax relief introduced last year, rules on contracted out R&D have changed. James Dudbridge argues for a proactive approach when reviewing companies’ commercial arrangements
Gift this article