When people hear about betting companies, they usually think of fun, games, and quick money. Names like 22bet pop up often in these conversations. But behind the scenes, there is a bigger story. Many of these companies earn millions in profit each year. Yet their tax contributions often do not match the size of their earnings. Instead, they use clever tactics to reduce what they pay to governments. This leaves countries short of money for important things like hospitals, schools, and roads.
Using Offshore Registrations
One of the most common tricks betting companies use is registering their businesses in countries known as tax havens. These are places where companies pay very little tax or sometimes none at all. The betting firm may operate in Africa, Asia, or Europe. But on paper, it is registered somewhere like Malta or the Cayman Islands. This makes it hard for the local government to track their real income. In the end, the company keeps more profit. Meanwhile, the local country loses valuable revenue.
Underreporting Profits
Another method is reporting less income than they actually make. Betting companies often process thousands of transactions daily. By moving money around different accounts or hiding certain streams of income, they create the appearance of lower profits. Some platforms declare only a small fraction of their online earnings locally. But the larger share is accounted for abroad. This reduces the taxes they are supposed to pay at home.
Exploiting Loopholes in Law
Tax laws are not perfect. Betting companies hire skilled lawyers and accountants who look for loopholes to exploit. These loopholes may include unclear rules about digital transactions. They may also include vague laws on winnings or weak regulations around foreign remittances. By staying one step ahead, these companies operate within the law but still avoid paying what seems fair. This creates a problem. Local businesses with fewer resources cannot compete under the same conditions.
Partnerships and Shell Companies
Some betting companies create smaller companies or form partnerships that exist only on paper. These shell companies are used to move profits from one place to another. One company may pretend to pay high fees to its partner abroad. This reduces its local profit margin. On paper, it looks like the business made little money. But in reality, the profit was just shifted out of the country.
The Effect on Communities
The money lost through tax evasion is not a small amount. Governments depend on taxes to build schools, provide healthcare, and maintain infrastructure. When betting companies avoid taxes, it means less money for public projects. Ordinary citizens end up carrying more of the tax burden. Large foreign companies benefit while the local economy suffers.
The story is not only about unfairness. It is about lost opportunities for development. A country with proper tax collection could invest more in education. It could reduce unemployment and strengthen its economy. The longer companies keep avoiding taxes, the longer communities will continue to suffer from poor services and slow growth.
Local authorities are now under pressure to act. Stronger tax systems are needed. Better monitoring of digital platforms is required. Clear international cooperation is necessary. If betting companies are allowed to continue unchecked, the gap between what they take out of a country and what they give back will only grow.