Italian government introduces emergency turnover tax until 2022

Italy’s government has greenlit a new 0.5% emergency tax on sports betting turnover until 2022, in another blow to Italian sports betting operators already hit hard by the coronavirus pandemic.

The Decreto Rilancio, or Revival Decree, was passed by MPs in the Italian parliament at the weekend and will apply to all bets, both online and retail.

In addition, all bets on virtual sports will be included within this new turnover tax.

However, the tax is limited in how much can be levied by the Italian government each year. In 2020, a maximum of €40m can be secured while in 2021 there is an upper limit in place of €50m.

Italian operators are currently subject to a taxation rate of 20% of gross gambling revenue on retail bets (excluding horseracing), rising to 24% for all online bets. Online casino operators are currently taxed at a rate of 25% of GGR.

Italian sports betting operators have seen their revenues drop substantially as a result of the coronavirus pandemic with top operator revenues dropping by 57% to just €19.4m for April, down from €45.6m in March.

The funds raised from the additional taxes will be used as part of efforts to re-energise Italian sport following the impact of Covid-19.

In April, the president of the Italian Football Federation Gabriele Gravina called for a 1% Robin Hood tax from sports betting revenue to re-energise the sport following its coronavirus stagnation.

LOGiCO CEO Moreno Morasco has previously attacked the new proposals, calling them “inappropriate and unsustainable” for the Italian sports betting market.

Morasco has also alleged that the increased taxation of sports betting operators is a “gift” to Italy’s criminal underworld.