Poll: Is Italy's 22% GGR betting tax a fair deal?

A recent amendment to Italy’s Stability Law will see the introduction of a new betting tax on gross gaming revenues (GGR) on 1 January 2016.

The new 22% tax on GGR will replace the current tax on turnover which has proved unpopular with operators.

While the move away from a turnover tax will no doubt be welcomed, the rate has come in slightly higher than previously anticipated.

Italy’s Budget Committee had been expected to implement a flat 20% revenue tax across all online betting and gaming verticals, but a late amendment sees sportsbook singled out with a higher rate, while land-based betting has also been handed a more favourable 18% levy.

A number of otherwise successful operators, including Paddy Power and William Hill, have struggled to turn a profit in Italy, and one executive from another major operator described the rate as “higher than expected”, adding that more differentiation on product category would have been preferred.

Regardless, should the bill pass as expected later this week, Italy will fall broadly in line with much of the rest of Europe. While the rate is higher than the 15% levied in the UK, it is lower than Spain’s 25% and similar to the 20% currently proposed in the Netherlands.

With this in mind, this week’s eGaming Review poll asks readers whether Italy-facing sportsbooks should be happy with the new tax regime, even at the slightly higher than expected 22% rate. Have your say on the right-hand side of the page.