Italy plans to increase taxes on iGaming
The government of Italy has proposed an increase on iGaming taxes as part of its 2020 budget plan sent to the European Commission.
Italy.- Italy’s government is planning to raise €650 million in new annual revenue from the iGaming industry. As part of that initiative, it sent its 2020 budget plan draft to the European Commission, seeking its approval.
The budget draft includes a plan that would increase taxes on revenue from amusement and prizes (AWP) and video lottery terminals (VLTs). If approved, the AWP rate would be introduced on February 10, 2020. The draft establishes that it would rise from 21.6% to 23%, while the VLT rate would rise from 7.9% to 9%.
In order to fight illegal gambling, the government wants to create a central registry for gambling licensees under the Agenzia delle Dogane e dei Monopoli (ADM) regulatory body. New measures include penalties of up to €1.3 million for financial institutions that process payments on behalf of unlicensed operators.
Trade group writes an open letter to Italy’s president
Italian trade group LOGiCO, which represents the interest of online gambling operators in the country, has written an open letter to the President. The association is asking for open communication in order to review the current gambling regulations in Italy.
Moreno Morasco, president of LOGiCO, addressed Italian Giuseppe Conte and said that a total ban on advertising and sponsorship, as well as increased taxation on gaming, affects the online gaming sector. “Not only in economic terms, but also it harms the market itself,” says LOGiCO.
The trade body argues that the regulations undermine the solidity of the entire remote gaming regulatory system. It said that in the absence of a legal offer, it relegates the gaming demand to illegal channels, which are easily reachable. As gamblers can still access these sites, the regulations end up having the opposite effect, increasing social problems.
