The gambling industry in Italy is currently thriving. Following some setbacks faced earlier in 2022, the sector managed to continue growing, which, in its turn, is leading to changes, such as the implementation of a bigger tax on sports betting providers.
At the beginning of the week, the new betting law of the country was published in the Official Gazette. The decree, which includes a number of new features such as a change in the liability of odds, early cash-out, and fixed-odds betting, will come into effect in 25 days. As mentioned above, new taxes will also be implemented, with the increased financial burden set to be imposed not only on operators but consumers may be forced to pay as well.
The new tax regime for the Italian gambling sector will be brought into force only a few weeks after some changes were brought to Spain’s tax code. Making changes in the taxation of the gambling industry has been a common issue for local Governments, although the outcomes of such moves can not always be projected.
Anyway, the tax rule changes in Italy’s gambling industry are unlikely to lead to drastic effects on the market. As it was announced by the country’s Government, retail betting revenue is set to face a 2% increase in its tax, from 18% to 20%. The same increase rate will be imposed on online betting revenue, which is set to grow from 22% to 24%. The 1% turnover tax that had been sought by some lawmakers eventually did not make it into the final version of the decree.
Early Cash-Out Options, Reduction in Minimum Bet’s Amount Also to Be Impelemented
As mentioned above, a few other changes will be implemented along with the retail and online betting tax increase.
The early cash-out feature is probably the most interesting change that is to be brought to life with Italy’s new gambling decree, especially for people who bet on football matches. Under the cash-out option, bettors will be allowed to collect on a bet before the game is over, but punters will also have to settle their wagers for a lower amount.
Another major change that will be brought to life with the new betting law, is the reduction of the minimum bet’s amount, which was previously €2 and will not be cut to €1. There will also be some alterations in customers’ paydays, but high-roller gamblers will probably be happy to learn that the limit of wins on fixed-odd bets will be increased from €10,000 to €50,000.
Local people just love to gamble. In 2021 alone, Italians spent more than €100 billion – an amount that is expected to increase further in 2022, with the popularity of the local gambling sector becoming even bigger. This has been exactly the reason why the country’s Government decided to update the regulations concerning gambling. The competent authorities also had to provide more transparent rules and directives and online gambling companies that wished to enter the local market without facing monetary penalties.
The legislative innovations included regulatory oversight reorganization as one of the most important restructurings that were done by the Government. The Autonomous Administration of State Monopolies (AAMS) was restructured and became the Customs and Monopoly Agency (ADM) in an effort to streamline the bureaucratic procedure and bring more clarity to the license application and awarding process, the establishment of administrative controls, and manage taxation and conflict resolution.