Unibet issues warning over Belgium VAT plans
CEO Henrik Tj?rnstr?m says government must "think twice" before implementing its planned 21% VAT on gambling
Unibet boss Henrik Tj?rnstr?m has asked the Belgian government to “think twice” over proposals to impose a new 21% gambling VAT, warning the levy could lead to significantly lower market channelisation.
The federal government plans to implement the new sales tax, which would hit licensed operators such as Unibet, Betway and bwin, later this year as an addition to the 11% tax on gross gaming revenue already paid by Belgium-licensed operators.
And speaking to EGR this morning, Tj?rnstr?m said the implementation of the VAT would be to “the detriment of everyone” and have a negative impact on both consumer protection and tax revenue.
“We [Unibet] have been operating online for about 19 years and we have seen it happen before as customers are only ever one click away to play where they get the best price,” Tj?rnstr?m said.
“You have the two extremes of the UK on one hand France on the other, and if people think there is no correlation between taxes and channelisation then I think it’s a bit na??ve.
“If the government thinks it can grab extra revenues without having any negative spill over effect when it comes to reinvestment into sports, for example, that unfortunately is not the case. There is so such reality,” he added.
The country’s Cabinet of Ministers and Prime Minister Charles Michel were due to discuss the proposals at last Friday’s weekly cabinet meeting but the talks were postponed until later this week.
The new 21% VAT would apply to all gambling operators with the exception of the Belgian National Lottery, including its online sportsbook Scooore!, which Unibet argues would constitute state aid.
The Stockholm-listed operator, in conjunction with other online gambling firms, has been busy lobbying the government in recent weeks in an attempt to dissuade the government from implementing the levy.
“We have been quite active with meetings and discussions; it’s not so much about putting pressure on the government but trying to explain how it works,” Tj?rnstr?m added.