Operators welcome new Italian horseracing tax
A horseracing tax switch from turnover to gross gaming revenue for 2018 could reinvigorate the sector according to domestic operators
Italian operators have hailed a new tax rate for horseracing betting in the country that could help reinvigorate the sector.
Horseracing bets were previously taxed on a turnover basis, but a new law, active from 1 January 2018, means taxes on the sport will now come from gross gaming revenue (GGR), set at 43% for retail bets and 47% for online.
“Horse betting has always been part of the Italian tradition, but a turnover-based tax regime had led to its rapid decline,” said DLA Piper lawyer Giulio Coraggio on his blog.
SNAITECH, one of the biggest horseracing operators in Italy, hailed the changes, with CEO Fabio Schiavolin saying: “This [change] is the first concrete step for the reform of the sector that we have been talking about for many years.”
“Horseracing in Italy has a long and rich culture that needs to be revaluated and this is a task we all have to take on with maximum responsibility.”
However, one executive for an international operator in Italy who requested anonymity, questioned whether there would be any major uptick given the still hefty tax rates.
“It has now changed to 47% of GGR so no one is putting the flags out,” the exec said. “It does seem like a missed opportunity at the moment, as no major international operator that I am aware of is rushing to offer betting on racing in the Italian market.”
Tax rates on horseracing are significantly higher than on sports betting which is also taxed by GGR (18% retail and 22% online).
However the Ministry of Finance is reportedly open to further reductions in the tax rate should they see an increase in tax entries from the initial change in the law.
The original draft for the new tax law, although not implemented, called for the GGR tax on a sliding scale from 47% down to 37% as overall volumes increased.