Lottomatica made statements about AAMS Executive Decrees in Bill 138
Lottomatica said that, although the content of the aforementioned Decrees is not yet fully known, it is possible to make several observations after an initial assessment of the elements that have emerged.
•6% tax on winnings over 500 euros
In the past, the Italian gaming sector has experienced similar increases to the ones just announced. For the game of Lotto, where today all winnings are already taxed at 6%, previous taxation has never negatively influenced consumer habits.
The new measure concentrates taxation on winnings that are significant in value, but rather limited in terms of frequency. Based on Lottomatica’s in-house estimates, more than 95% of winnings relative to the entire product portfolio would not be affected.
Consequently, the new measure does not seem to have characteristics that will affect consumer demand.
•Taxation of VLT gaming
Due to contractual agreements already signed with the retail distribution chain in the VLT Italian market, the 1% increase in taxation in 2012 would produce an impact on Lottomatica Group’s EBITDA of approximately 25 million euros. In 2013, the tax increase announced is expected to be 0.5%.
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