RGA slams Portugal's online tax plans
Remote Gaming Association says proposed sports betting revenue tax of 8-16% would "destroy any hope of fair competition"
The Remote Gambling Association (RGA) has criticised the Portuguese government’s plans to hit online sportsbooks with a revenue tax of 8-16%, describing the proposal as being both “punitive” and “unviable”.
The tax proposal was laid out in a draft bill currently making its way through Portugal’s parliament as part of the country’s plans to liberalise a market currently controlled by state-owned monopoly Santa Casa da Misericórdia.
And while the RGA welcomed the decision to open up the market, it said its members were concerned that the online sports betting rate, which is higher than the average 4.5% turnover rate applied to Santa Casa, would create an uneven playing field.
On top of the higher rate, it has also been proposed that Santa Casa would receive 27% of online tax receipts, something the RGA has claimed would constitute a payment of illegal state aid.
“The extent of the disparity in tax burden between licensed online sports betting operators and the offline monopoly operator Santa Casa could be as much as 50% in favour of Santa Casa,” Clive Hawkswood, RGA chief executive, said.
“Such a differential has the potential to create a situation of substantial illegal state aid being granted to Santa Casa by the Portuguese government whilst also destroying any hope for fair competition in a future regulated online sports betting government.
“The RGA would welcome the opportunity to engage in a constructive dialogue with the Portuguese government to ensure a level playing field for all online sports betting operators seeking to obtain licenses.”
According to the draft, online gaming taxes will be set at 15% gross gaming revenue.
It is understood Portugal had been considering an extension of its offline monopoly but had been warned off by the European Commission, however, such tax rates could well prove too bigger barrier to entry for foreign operators.
Portugal hopes to make progress on legislation ahead of its summer recess on 10 July.