Italian online operators hit with new tax rises

Italy-facing online operators will be hit with a raft of new taxes from next year after the country’s Senate approved a new budget yesterday which increases taxes on various types of gambling.

The new legislation is scheduled to take effect from 1 January 2019 and will see tax on online poker tournament revenue increase from 20% to 25%, while online sports betting tax will also rise from 22% to 24%. It is still unclear whether the poker tournament tax increase will also apply online casino and cash poker.

Italy’s land-based sports betting sector will also be subject to tax increases, with the levy on retail sports betting operators rising to 20% of the GGR. There are also some increases for video lottery terminals and amusements with prizes machines.

The news follows what has been a difficult year for Italy-facing gambling operators after the government earlier this year announced it would introduce a blanket ban on gambling advertising in 2019.

London-listed supplier Playtech, which acquired Italian gambling giant SNAITECH earlier this year, this morning announced it expects to reduce its 2019 adjusted EBITDA by approximately €20-25m before any mitigating actions.

Italy’s new budget was passed by the Senate yesterday by 167 votes to 78 after the governing coalition watered down a number of measures amid a standoff with Brussels and still has to be approved by the other chamber of the Parliament.

The new legislation is expected to receive final approvals before the end of 2018.