Grenada to impose 15% tax on all game of chance winnings over EC$10000

Effective 1 March 2023, the Government of Grenada has decided to levy a 15% tax on all game of chance winnings exceeding EC$10,000.

The 2014 legislation is an amendment to the Income Tax Act of 2010, approved by the Lower House or House of Representatives on 16 May 2014 and by the Upper House or Senate on 29 May 2014 of the then-Keith Mitchell Administration. It was not enforced, and no explanation was given.

According to the law, “winnings” refers to “cash winnings,” and any reference to an amount or payment in relation to winnings is construed accordingly.

“A withholding tax of 15% will only be charged on the excess over EC$10,000 and not the full winnings,” explained Mike Sylvester, Permanent Secretary in the Ministry of Finance.

Wayne Redhead, a well-known bingo promoter, stated that he was made aware of law enforcement during a recent meeting with the Ministry of Finance. “I now have to educate my people about that law if the winnings exceed EC$10,000,” he explained. Redhead also runs a slot machine business.

All games of chance, including Lotto, Blast, and bingos, will be subject to the law. It will not be the individual’s responsibility to pay the winnings directly to the Ministry of Finance. The promoter of the game of chance will make the deduction and pass it on to the ministry.