New Tax Policy Of Italy Will Negatively Affect Playtech Income

Home » New Tax Policy Of Italy Will Negatively Affect Playtech Income
January 11, 2022
2 minutes

December 23, the senate italy approved an increase in taxes on gambling. According to gambling giant playtech, the innovation will cost the company in €20 million.

New Tax Policy Of Italy will negatively affect Playtech income

On sunday, the senate italy approved the changed version of the new budget of the coalition government of 167 votes. The next stage of consideration is scheduled for december 27. Chamber’s voting in full force will be held on december 28.

Last week, the government suddenly announced its intention to increase the rate of gambling tax from january 1, 2019. Namely on the income of online casino (from 20 to 25%), betting (from 22 to 24%) and online bets (from 20 to 22%). The tax rate on the activities of ground-based bc was also raised – from 18 to 20%.

The government of italy believees that these changes will bring additional €770 million in the treasury, most of the income will come from the ground sector. Chairman of the council of ministers of italy giuseppe conte stated that tax raising is designed «restore some justice» tax codes.

Depeuty conte – luigi di mayo – stated that the gambling sector of italy now «is subtject to the highest taxes in europe».

Playtech and tax raising

As an illustration of how the change in taxation in italy will affect the operators, attention shold be paid to the paytech report. The company specializes in online gambling and significantly expanded its influence due to the acquisition of snaitech for $ 1 billion.

According to the company, increasing taxes will likely lead to a reduction in the company’s profits in 2019 approximately «€20-25 million withot any mitigating measures».

Investors were alarmed by this message, as a result of which the price for the stock of playtech decreased by almost 7%.

Recall that from january 1, 2019, the law on banning advertising of gambling comes into force in italy.

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