New 22% GGR tax for Italian sportsbooks
Amendment to Stability Law sees introduction of revenue-based levy but at a slightly higher rate than expected
Italy-facing sportsbooks will be taxed on a gross gaming revenues (GGR) basis from the beginning of next year, albeit at a slightly higher than anticipated rate of 22%.
The switch comes after Italy’s Budget Committee passed a number of amendments to the Stability Law, a bill which is expected to be passed by the country’s Chamber of Deputies later this week.
If the bill is given the green light, from 1 January 2016 sportsbooks will no longer be taxed on a burdensome turnover basis and instead be levied at 22% of revenues.
Italy had been expected to implement a flat 20% revenue tax across all online betting and gaming verticals. Poker and bingo will be moved in line with casino at 20% although the change to bingo won’t be implemented until 1 January 2017.
Nevertheless, DLA Piper gaming lawyer and partner Giulio Coraggio welcomed the news and said the 22% rate wouldn’t overshadow the move away from the turnover tax.
“I don’t think they [operators] will be disappointed [with the higher rate] as the main goal was to obtain a GGR tax – I think they will be happy about that,” Coraggio told eGaming Review.
Italy’s online sportsbook market has gone through a period of change in recent years with the regulator implementing a series of libralisations measures which has resulted in a spike in regulated marekt revenues, partially due to new market entrants.