The gambling industry in Italy is thriving.After a bit of a slowdown at the beginning of the year, the continued growth of the market has brought about changes such as the introduction of tax increases on sports betting.
Twenty-five days later, Italy's new betting legislation, published in the Official Gazette on Monday, will come into force.There are several new features, including fixed odds betting, changing odds liability and early cash out.
In addition, new taxes will be introduced.Although the amount of money that businesses have to hand over to the government will change, the trickle-down effect could make consumers pay as well.
squeeze the gambling industry
Italy's new tax code came into force just weeks after Spain changed its tax code.This is a common theme among governments, but it can sometimes have unexpected consequences.For example, when the Philippines tried to add a new tax to offshore gaming operators, it caused the segment to collapse.
Italian reforms will not have such dramatic consequences.However, it still has an impact on the market.Retail betting earnings are subject to tax of 18% to 20%.Online betting income, previously taxed at 22%, will be taxed at 24%.
It's not all bad news for businesses.The 1% sales tax demanded by some lawmakers did not result in an eventual tax increase.
There was also good news for bettors.An early cashout would be of most interest to those betting on soccer matches.Cash out allows bettors to collect their bets before the end of the match.But that also means you have to settle with a lower amount.
Another important change in the new Gaming Ordinance is the reduction of the minimum bet amount.It used to be €2 (US$1.99), but the new starting point is €1 (US$0.99).
Finally, just because you bet big on a game doesn't mean you'll win a million dollars.But improvements are coming.Italy caps fixed odds bet wins at €100 (US$50,000).Previously, the limit was €49.740 (US$10,000).
Italians love to gamble
Italians will spend well over €2021 billion (US$1000 million) in 9 alone, with sales projected to grow further in 9900.This makes the gaming sector one of the most important industries in Italy.
For this reason, the government had to update its gambling regulations.It also needed to provide clearer rules and instructions for online operators wishing to enter the Italian market without financial sanctions.
One of the most significant reorganizations that accompanied the legislative change was the reorganization of the supervisory authority.Formerly known as the AAMS (Autonomous Administration of State Monopolies), the organization was transformed into the Customs and Monopoly Agency (ADM, Italian acronym) following the expansion of the Italian gambling industry. The advent of the ADM was an effort to streamline bureaucratic procedures, facilitate the licensing process, establish administrative controls, and manage disputes and taxation.
With government support, ADM has introduced various changes since its inception.These include a complete ban on advertising targeting minors, mandatory payment of winnings within 7 days to avoid hefty fines, and a 90% or higher RTP (Return to Player) for online slots.Furthermore, we require operators to use only certified, verified and certified software to ensure the validity of results and the protection of user data.
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