After its fiscal ministries considered issuing a 1% tax on betting turnover in the country at the end of April, Italy announced it would raise its retail and online betting revenue taxes at the end of October. According to the country’s fresh sports betting decree, the new tax raise will not also bring along the proposed 1% tax on turnover.
The New Taxes to Come Into Effect on October 28
The new regulations will officially start being enforced on October 28, 30 days after their publication in the Official Gazette. A new €1 ($0.99) minimum bet will be enforced by the new rules, from the previous €2 ($1.99) level, together with a capping of fixed-odds bets at €50,000 ($49,740). The previous limit for fixed-odd bets was capped at €10,000 ($9,999). The same decree regarding sports betting activities in Italy will display a 20% tax on retail betting revenue, from 18% in the past, and a 24% online betting revenue tax from the previous 22%.
The new set of regulations will also cover all fixed-odds bets on sports events other than horse racing. The list includes events that are not related to sports and that have received approval from the Italian Customers and Monopoly Agency. The regulations will also regard changes in the liability of odds, along with fresh early cash-out regulations. The early cash-out option is expected to be particularly interesting for bettors who like to wager on soccer matches. It will enable them to collect their bets prior to the official end of a game. At the same time, the new rule also translates to bettors being forced to settle for smaller amounts they can cash out.
The Dignity Decree
Starting at the beginning of 2019, the country’s Council of Ministers approved a blanket ban on all forms of gambling advertising. The total ban on gambling ads was referred to as the “dignity decree” and it was opposed by the gaming and sports betting industries as well as a number of national soccer organizations that since then lost their revenue from sponsorships as their agreements were canceled. At the time, over 50% of Italy’s total number of clubs part of Lega Serie A had signed a sponsorship deal with companies part of the industry.
LeoVegas Italy’s managing director Niklas Lindahl then issued a warning claiming the ban imposed on gambling advertising would lead sports bettors to the black market. The claim was invalidated by the Deputy Prime Minister.