Poll: Changes to taxation will harm the Italian market
46% believe rumoured change to a 1% turnover tax will hurt Italian operators.
A small majority believes the Italian Ministry of Finance’s rumoured change in the rate of tax on casino and poker will cause problems for operators in the market, though a significant percentage of readers believe Italy’s high egaming revenues will sustain the market.
The Ministry of Finance is thought to be in the process of changing the current rate of 20% of gross profit on casino and poker to 1% of turnover, bringing it closer in line with the 5.5% of turnover taxed on sportsbook, and 12% turnover tax paid by bingo operators. 46% of those polled feel that this change will badly affect operators in the market.
Ten of the leading Italian online operators are currently embroiled in an ongoing case with the Ministry over gaming machine taxes, with the government’s audit department looking to fine ten operators a total of 2.5bn. As the majority of operators have high levels of debt, turnover tax could further damage their income and potentially see entire market change, with leading operators crippled by huge debt and poor revenues.
However, the introduction of regulated cash poker and casino last year is expected to help the market grow significantly, so despite paying a high level of tax, around 42% of readers believe the market could weather the change. Italy remains the largest egaming market in Europe, so it is likely that European operators would enter the market to attempt to claim market share.