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Gaming machines: Income tax treatment of gaming machine income

Income tax treatment of gaming machine income

From 3 April 2006, all gaming machine income is exempt from income tax as long as:

  • the organisation is licensed to conduct gaming machine gambling under the Gambling Act 2003, and
  • they comply with the Act in applying and distributing the net gambling proceeds.

Do I need to pay tax on my gaming machine income?

If... then... and...
your only source of income is from the gross gambling proceeds you will automatically qualify for an exemption you are not required to file income tax returns.*
you receive income from other sources
  • only the income from gross gambling proceeds will be exempt from income tax, and
  • you may still be liable for an exemption
  • you will need to file income tax returns unless you have an exemption from us.
  • the conditions for exemption depend on whether the organisation is:
    • established exclusively for charitable purposes, or
    • an amateur sports promoter, or
    • some other type of non-profit organisation.
your organisation is found to be not exempt from income tax you will be required to file a tax return each year you should include in the return a:
  • full set of accounts, and
  • schedule of distributions made by the organisation.
Don't include any income from gross gambling proceeds from gaming machine income.

* Please let us know if this applies to you so we don't send you any income tax returns.