New tax policy in Italy will negatively affect Playtech revenues
On December 23, the Italian Senate approved a tax increase on gambling. According to the gambling giant - Playtech, the change in taxation will cost the company €20 million.
On Sunday, the Italian Senate approved a modified version of the new budget of the coalition government by 167 votes. The next stage of consideration is scheduled for December 27. The voting of the chamber in full will take place on December 28.
Last week, the government suddenly announced its intention to raise the tax rate on gambling, starting January 1, 2019. Namely, on online casino revenues (from 20 to 25%), betting (from 22 to 24%) and online betting (from 20 to 22%). The tax rate on the activities of ground-based establishments was also increased from 18 to 20%.
The Italian government believes that these changes will bring an additional €770 million to the treasury, most of the revenue will come from the land sector. Italian Prime Minister Giuseppe Conte stated that the tax increase is intended to “restore some justice” to the tax codes.
Luigi Di Mayo (Giuseppe Conte’s deputy) - said that the gambling sector in Italy is now "subject to the highest taxes in Europe."
Playtech and tax increase
As an illustration of how the change in taxation in Italy will affect the operators, you should pay attention to the Playtech report. The company specializes in online gambling and has significantly expanded its influence through the acquisition of Snaitech for $1 billion.
According to the company, a tax increase is likely to reduce the company's profits in 2019 by €20-25 million.
Investors were alarmed by this announcement, causing the price of Playtech shares to drop by almost 7%.
Suggested Reading - New tribal casino will appear in US