Greece approves 35% GGR tax rate
Five percentage point tax hike for operators described as "prohibitive" by industry experts
The Greek government has approved a 35% GGR tax for operators as part of an effort to address the country’s crippling economic problems.
The new rate replaces a proposed scalable 30-35% GGR duty for the 24 online operators with interim licences and will be applied retroactively from 1 January 2016.
The amended provisions ensures a level playing field in the online gambling market with the 24 online operators paying the same betting duty as the monopoly OPAP.
OPAP is said to have lobbied hard for the higher flat rate as a way of discouraging new competition from entering the market, which the government has committed to reforming, including the issue of permanent licences.
Clive Hawkswood, chief executive of the Remote Gambling Association, confirmed to EGR that the new tax rates might have exactly that effect.
“The big issue is whether companies will be deterred from entering the market when it is properly opened up with a new licensing and regulatory system,” said Hawkswood. “As ever, companies will have to weigh up the total cost of market entry, but by any standards 35% is prohibitive.”
Teemu Lehtinen, a consultant in Greece, agreed that any foreign operators entering the market under the new tax regime would likely struggle to build market share.
“If you have a lower EBITDA margin of 15-20%, then a 35% tax on the top line is going to make your life very difficult,” he said. “This is not going to make a future Greek online gambling market attractive,” he added.
Gambling was not the only industry hit by increased taxes after the government also approved higher levies on beer, coffee, hotels, TV, telephone bills and tobacco as it seeks to unlock bailout funds from Europe.