INCOME TAXES

3 Months Ended

Jan. 31, 2023

INCOME TAXES

Income Taxes

Note 14 - Income Taxes

United States of America (USA)

The Company has sufficient tax net operating losses to offset the current net income which results in $0 tax liability for the USA operations.

United Kingdom (UK)

For the three months ended January 31, 2023, the Company had income tax expense in the amount of $145,686 attributable to its operations of RKings and GMG Assets in the United Kingdom.

The Company, through RKings and GMG Assets, conducts a significant amount of its businesses in the United Kingdom and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority. Although the operations in its segments outside of the United Kingdom generate net income, the Company has sufficient tax net operating losses to offset the current net income which results in $0 tax liability for the non-United Kingdom operations.

The Company, through RKings and GMG Assets, is subject to a statutory tax rate of approximately 19% of net income generated in the United Kingdom.

As a result of the acquisition of RKings, the Company assumed the income tax liability of RKings as of November 1, 2021 of $602,628. No income tax liability was assumed from GMG Assets.

Balance November 1, 2021	$	602,628
Income Tax November 1, 2021 through October 31, 2022		419,049
Income Tax November 1, 2022 through January 31, 2023		145,686
Tax paid		(549,697	)
Currency Adjustment		(122,358	)
Income Tax Liability	$	495,308

As of January 31, 2023 and October 31, 2022, the Company had UK income tax payable of $495,308 and $243,989, respectively.

Mexico (Latin America)

For the three months ended January 31, 2023, the Company had income tax expense in the amount of $0 attributable to its operations of Golden Matrix MX, S.A. DE C.V. in Mexico as the online casino is still under development and enhancements, and marketing efforts of the online casino has not commenced and is not generating revenues yet.

The Company, through Golden Matrix MX, S.A. DE C.V., is subject to a statutory tax rate of approximately 30% of net income generated in Mexico.

As of January 31, 2023 and October 31, 2022, the Company had Mexico income tax payable of $0 and $0.