Italy is set to introduce a new emergency “turnover tax” on betting and virtual sports wagers. 

Last week the Italian parliament approved the new “temporary” 0.5% turnover tax across all betting verticals, including online, retail and virtual sports. It is set to apply until 31 December 2021. 

The new tax is part of the “Revival Decree,” which includes a raft of measures aimed at raising funds to support the post-COVID-19 recovery of the Italian economy and society. The tax will also enable the establishment of a “sports relief fund,” which aims to raise €90m by 2021. 

During March and April, the Italian sports betting industry saw revenues crash a record 72%, and estimates suggest it may take a year or more for it to recover to pre-COVID-19 levels.

Understandably, the new tax has been met with disbelief by many, who question the logic of increasing the tax burden on a sector that has been so badly hit by the crisis, and leading to the country becoming one of the highest-taxed regulated sports betting markets in Europe.

Italian sports betting operators already pay GGR betting duties of 20% for retail, 22% for virtual games, and 24% for online betting.

Though operators will be dismayed at the new tax, it could have been worse, as initial drafts of the legislation called for a 0.75% turnover tax. 

AYO.NEWS says:

The Italian government is hardly known for sound economic decisions, but this really does take things to a new level of absurdity – increasing the tax burden on one of the sectors COVID-19 hit hardest. 

Staying with Italian sports betting, don’t miss “Southern Change: Shaping Italy’s Online Betting Market.”

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