Italy ushers in new tax regime
New framework, which sees sports betting levied on revenue rather than turnover, brought into force on 1 January
Online firms in Italy are operating under a new tax regime after the country’s government ushered in a new framework at the beginning of the year.
From 1 January, sports betting and poker tournaments are no longer levied on a turnover basis but instead taxed at 22% and 20% of revenues respectively.
The move has been broadly welcomed by industry, although sports betting operators had previously anticipated the introduction of a 20% rate but a late amendment to the Stability Law sees sports betting taxed at a higher rate than all other verticals.
Speaking to eGaming Review, DLA Piper partner and gaming lawyer Giulio Coraggio said ditching the turnover tax should lead to an influx of new market entrants while consumers could also feel the benefit of improved products.
“There will be some quite interesting new entrants in the market while sports betting operators will be able to offer much more competitive odds leading to a growth of the market,” Coraggio said.
Last year both Sky Betting & Gaming and 888 announced plans to launch Italy-facing sportsbooks in 2016.
While changes to poker and sports betting went live at the start of this year, the planned change to the taxation of bingo, which will also move to a 20% revenue rate, will come into force at the start of 2017.
Casino games has long been taxed at the 20% rate so remains unchanged.