Italian sportsbooks still hopeful of tax reduction
RGA hopes "good sense will prevail" and Italy replaces proposed 22% betting tax to flat 20% online rate
Italy-facing sportsbooks remain hopeful that the country’s decision makers will amend the current draft Stability Law and introduce a 20% revenue tax across all online betting and gaming products.
Earlier this week Italy’s Budget Committee passed a number of amendments to the bill, including a provision to tax online sportsbooks at 22% of GGR, higher than the 20% rate proposed for other online verticals.
But while the bill is expected to be passed in the coming days – the new betting tax is set to be implemented on 1 January 2016 – eGaming Review understands the wording of the draft has changed a number of times in recent weeks, giving hope that the 22% rate could yet be lowered.
Speaking to eGR, Remote Gaming Association chief executive Clive Hawkswood said he was pleased the country had decided to move away from a turnover-based taxation model but questioned the differential treatment reserved for sports betting.
“It’s a very positive step that there will be a move to GGR because that’s something we’ve called for since the outset, but it would be much more sensible to have a single rate for all online gambling activity,” Hawkswood said.
“The proposed difference between betting and gaming still hasn’t been explained adequately and hopefully good sense will prevail,” he added.
News of the tax switch was welcomed by Sky Bet Italia MD Giovanna D’Esposito, although the 22% rate took her somewhat by surprise.
“The switch to GGR taxation is a long-awaited and welcome change, however, setting a higher rate for online over retail was not expected,” D’Esposito said.
A spokesperson for one of the biggest foreign sportsbooks in the market, William Hill, also said it was hopeful that the final package would provide a commercially viable environment in which to operate.
“We expect final details of the tax rates to be confirmed this week and we continue to hope for realistic tax rates that support sustainable business models and effective regulation,” the spokesperson said.
According to the current draft law, poker tournament and bingo will also move away from a turnover-based levy to a revenue tax, although bingo’s change will only come into effect from 1 January 2017.