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Taxes

Placement tax

If a client has regulatory obligations to apply taxes on bet amounts, we provide support for this requirement.

Once notified to enable this feature, we will process all placement related transactions with separate tax variables included.

Below are examples of transaction requests.

Examples

  • place bet processing (with only cash value)

    Placement request with placement taxation enabled
    // initial bet amount - 100; placement tax - 12%; amount to tax - 12; amount to take part in a game - 88.00
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "withdrawal",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "bet", // the reason is the same as for bet without taxes
    "betId": "bet-id"
  },
  "amountBreakdown": {
    "cash": "88.00",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for placement taxation logic here (we need to deduct it)
      "cash": "12.00",
      "bonus": "0",
      "locked": "0"
    }
  }
}

  • rollback bet processing (with only cash value)

    Rollback request with placement taxation enabled
    // initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "rollback",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "sport rollback", // the reason is the same as for rollback without taxes
    "parentId": "parent-id", // this id will be equal to an id of the transaction, we want to rollback
    "betId": "bet-id"
  },
  "amountBreakdown": {
    "cash": "88.00",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for placement taxation logic here (we need to return it)
      "cash": "12.00",
      "bonus": "0",
      "locked": "0"
    }
  }
}

Placement tax for bets that are applied in a sport bonus

  • place bet processing (with different balances)

    Placement request with placement taxation enabled
    // initial bet amount - 100; bonusRate - 0.5; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "withdrawal",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "bet", // the reason is the same as for bet without taxes
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "22.0",
    "bonus": "44.0",
    "locked": "22.0",
    "tax": { // notice tax amount for placement taxation logic here (we need to deduct it)
      "cash": "3.0",
      "bonus": "6.0",
      "locked": "3.0"
    }
  }
}

  • rollback bet processing (with different balances)

    Rollback request with placement taxation enabled
    // initial bet amount - 100; bonusRate - 0.5; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "rollback",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "sport rollback", // the reason is the same as for rollback without taxes
    "parentId": "parent-id", // this id will be equal to an id of the transaction, we want to rollback
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "22.0",
    "bonus": "44.0",
    "locked": "22.0",
    "tax": { // notice tax amount for placement taxation logic here (we need to return it)
      "cash": "3.0",
      "bonus": "6.0",
      "locked": "3.0"
    }
  }
}

  • rollback bet processing after cancellation of sport-bonus (with different balances)

    Rollback request with placement taxation enabled
    // initial bet amount - 100; bonusRate - 0.5; placement tax - 12%; amount to tax - 11.12; amount to take part in a game - 88.00
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "rollback",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "sport rollback", // the reason is the same as for rollback without taxes
    "parentId": "parent-id", // this id will be equal to an id of the transaction, we want to rollback
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "44.0",
    "bonus": "0.0",
    "locked": "0.0", // we have already moved a locked amount to the cash, so these funds will be added to the cash
    "retract": "44.0", // notice that bonus moved to retract
    "tax": { // notice tax amount for placement taxation logic here (we need to return it)
      "cash": "6.0",
      "bonus": "0.0",
      "locked": "0.0",
      "retract": "3.0"
    }
  }
}

Important notes

Note

The settlement process will calculate the payout amount based on the bet amount with the tax amount deducted.

Note

Both the tax.cash/tax.locked/tax.bonus/tax.retract amount and the cash/locked/bonus/retract amount must be deducted/returned from/to the user's main balance on placement/rollback, respectively. Same for other balances (if included).

Note

Calculation of Tax:

  • A player enters a bet sum of 100 USD in the bet slip;
  • Bet sum: 100 USD;
  • Stake after tax: 88.00 USD (calculated using the formula: bet sum - (betSum * tax rate) = 100 - (100 * 0.12) = 88.00);
  • Excise tax: 12.00 USD (difference between bet sum and stake after tax: 100 - 88.00).

Warning

When performing a rollback, ensure that the transaction specified by the parent id field has been successfully executed before initiating the rollback.

Settlement tax

If a client has regulatory obligations to apply taxes on payout profits, we provide support for this requirement.

Once notified to enable this feature, we will process all settlement related transactions with separate tax variables included.

Below are examples of transaction requests.

Examples

Win settlement request with settlement taxation enabled
// initial bet amount - 100; tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// win; odd - 2.0; payout - 88.00 * 2.0 = 176.00; profit - 88.00; profit tax - 20%; amount to tax - 17.6; user's real payout - 158.4

{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "bet-id"
  },
  "amountBreakdown": {
    "cash": "158.4",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "17.6",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Cancel settlement request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// win; odd - 2.0; payout - 88.00 * 2.0 = 176.00; profit - 88.00; profit tax - 20%; amount to tax - 17.6; user's real payout - 158.4
// unknown; payout to return - 158.4; profit tax to return - 17.6

{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "withdrawal",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "cancelsettle",
    "betId": "bet-id"
  },
  "amountBreakdown": {
    "cash": "158.4",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "17.6",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Lose settlement request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// lose; odd - 2.0; payout - 0; profit - 0; profit tax - 20%; amount to tax - 0; user's real payout - 0

{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "bet-id"
  },
  "amountBreakdown": {
    "cash": "0.0",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "0.0",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Resettlement to return request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// return; payout to return - 71.1; profit tax to return - 17.6

{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "withdrawal",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "resettle",
    "betId": "bet-id"
  },
  "amountBreakdown": {
    "cash": "70.4",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "17.6",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Settlement to return 0.25 request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// return 0.25; payout to return - 44.00; profit tax to return - 0

{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "16fb83a1-d7d2-4eed-9818-6153f613b634"
  },
  "amountBreakdown": {
    "cash": "44.0",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "0.0",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Settlement to return 0.75 request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// return 0.75; full payout - 132.00; profit - 44.00; payout to return - 123.20; profit tax to return - 8.80

{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "865e5319-4ac5-4bd6-8de6-e68385e77ed4"
  },
  "amountBreakdown": {
    "cash": "123.2",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "8.8",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}

Settlement tax for bets that are applied in a sport bonus

Win settlement request with settlement taxation enabled
// initial bet amount - 100; tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00;
// win; odd - 2.0; payout - 88.00 * 2.0 = 176.00; profit - 88.00; profit tax - 20%; amount to tax - 17.6; user's real payout - 158.4
// bonusRate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "39.6",
    "bonus": "79.2", // payout * bonusRate
    "locked": "39.6", // min(realPayout - bonus, maxLockedCapacity)
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "4.4",
      "bonus": "8.8", // amount to tax * bonusRate
      "locked": "4.4"
    }
  }
}
Cancel settlement request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// win; odd - 2.0; payout - 88.00 * 2.0 = 176.00; profit - 88.00; profit tax - 20%; amount to tax - 17.6; user's real payout - 158.4
// unknown; payout to return - 158.4; profit tax to return - 17.6
// bonusRate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "withdrawal",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "cancelsettle",
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "39.6",
    "bonus": "79.2",
    "locked": "39.6",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "4.4",
      "bonus": "8.8",
      "locked": "4.4"
    }
  }
}
Lose settlement request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// lose; odd - 2.0; payout - 0; profit - 0; profit tax - 20%; amount to tax - 0; user's real payout - 0
// bonusRate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "0.0",
    "bonus": "0.0",
    "locked": "0.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "0.0",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Resettlement to return request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// return; payout to return - 71.1; profit tax to return - 17.6
// bonusRate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "withdrawal",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "resettle",
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "0.0",
    "bonus": "35.2",
    "locked": "35.2",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "0.0",
      "bonus": "8.8",
      "locked": "8.8"
    }
  }
}
Settlement to return 0.25 request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// return 0.25; payout to return - 44.00; profit tax to return - 0
// bonus rate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "16fb83a1-d7d2-4eed-9818-6153f613b634",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "0.0",
    "bonus": "22.0",
    "locked": "22.0",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "0.0",
      "bonus": "0.0",
      "locked": "0.0"
    }
  }
}
Settlement to return 0.75 request with settlement taxation enabled
// initial bet amount - 100; placement tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00
// return 0.75; full payout - 132.00; profit - 44.00; payout to return - 123.20; profit tax to return - 8.80
// bonus rate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "865e5319-4ac5-4bd6-8de6-e68385e77ed4",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "30.8",
    "bonus": "61.6",
    "locked": "30.8",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "2.2",
      "bonus": "4.4",
      "locked": "2.2"
    }
  }
}

Settlement tax for bets after the bonus has been wagered

After the bonus is wagered, we have to transfer part of the won bonuses amount to the cash amount (because of the maxBonusRelease amount) and part to the retract

Win settlement request with settlement taxation enabled
// initial bet amount - 100; tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00;
// win; odd - 2.0; payout - 88.00 * 2.0 = 176.00; profit - 88.00; profit tax - 20%; amount to tax - 17.6; user's real payout - 158.4
// bonusRate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "118.8",
    "bonus": "0.0", // 39.6 -> cash (released money); 39.6 -> retract 
    "locked": "0.0", // 39.6 -> cash. We have to unlock funds after bonus-release
    "retract": "39.6", // 39.6 capacity of maxBonusRelease in sport-bonus
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "13.2",
      "bonus": "0.0",
      "locked": "0.0",
      "retract": "4.4"
    }
  }
}

Settlement tax for bets after the bonus has been canceled

After the bonus is canceled, we have to transfer the won bonuses amount to the retract balance

Win settlement request with settlement taxation enabled
// initial bet amount - 100; tax - 12%; amount to tax - 12.00; amount to take part in a game - 88.00;
// win; odd - 2.0; payout - 88.00 * 2.0 = 176.00; profit - 88.00; profit tax - 20%; amount to tax - 17.6; user's real payout - 158.4
// bonusRate - 0.5
{
  "id": "id",
  "currency": "USD",
  "platform": "sport",
  "type": "deposit",
  "createdAt": "2021-01-20T00:00:00Z",
  "initiatedAt": "2021-01-20T00:00:00Z",
  "context": {
    "product": "sportsbook",
    "reason": "settle",
    "betId": "bet-id",
    "sportBonusOfferId": "a37f67df-4969-4296-a38f-754384128df5",
    "sportBonusPlayerOfferId": "e09751f8-bf51-48e4-9883-21eaa720920f"
  },
  "amountBreakdown": {
    "cash": "79.2",
    "bonus": "0.0", // 79.2 -> retract. We have to not add funds to the bonus after canceling sport-bonus
    "locked": "0.0", // 39.6 -> cash. We have to unlock funds after canceling sport-bonus
    "retract": "79.2",
    "tax": { // notice tax amount for settlement taxation logic is here
      "cash": "8.8",
      "bonus": "0.0",
      "locked": "0.0",
      "retract": "8.8"
    }
  }
}