The Parliament is discussing a 0.75% tax across all betting-related wagers to fund sports

Italian gaming trade bodies criticize potential wagering tax

The Italian Parliament is discussing the terms of a ‘Revival Decree’ aimed at supporting the recovery of business and society from the long-term effects of COVID-19.
2020-05-11
Reading time 1:46 min
Retail trade bodies Acadi and Sistema Gioco stated it would increase the overall tax burden on Italian betting’s commercial chain to over 30%, and that the betting sector is "living in aguish" and has been "discriminated against." LOGiCO President argued that licensed online firms would not digest another tax in a market that has doubled its tax demand to over 40%.

All Italian gambling trade bodies criticized parliamentary discussions on introducing a new tax on betting and virtual sports wagers aimed at raising funds for Italian sports.

As the Italian Parliament continues discussing the terms of a ‘Revival Decree’ aimed at supporting the recovery of business and society from the long-term effects of COVID-19, last week lawmakers considered the potential introduction of a 0.75% tax across all betting-related wagers, including online, retail and virtual sports content, as reported by SBC News. Members of Parliament (MPs) argued that a direct wagering tax was needed to help the government’s continued funding of Italian sports and its associated development programmes.

All Italian gambling trade bodies issued a response to MPs actions, stating that COVID-19 discussions had been hijacked to further punish the industry. Retail trade bodies Acadi (gaming machines) and Sistema Gioco (betting shops) issued a joint statement, demanding that Parliament instantly drop any discussions on “hypothetical taxes at a time when Italian gambling is living in anguish”. They stated that its members were “in bewilderment that the government would pursue a 0.75% sports wagering tax, that would increase the overall tax burden on Italian betting’s commercial chain to over 30%”.

The trade bodies also said that Italian betting had been “discriminated against,” reminding MPs that the government had made no guarantees on reopening or state funding to overcome the crisis – “this is a dramatic situation compared to what is foreseen for other sectors”.

In addition, Italian online gambling trade association LOGiCO stated that a wagering tax would simply be “a gift to the underworld.” Writing to Parliament, LOGiCO President Moreno Marasco argued that licensed online incumbents would not “digest an umpteenth tax that harasses legal firms to operate in a market that has doubled its tax demand to +40%.”

Marasco reminded MPs that Italian sports and Serie A had previously demanded that the government repeal its Dignity Decree restrictions on sports betting advertising/sponsorship to help sports navigate the crisis. “The betting sector has always supported sport and society with annual financing which is already foreseen by the gaming sector with a contribution to the national State Budget of over €400 million, destined for sport and health organisations,” Marasco added. “A support which must continue, without penalizing the legal gaming offer and users’ choices, especially since in 2018 the tax has already increased.”

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