On January 9, 2025, President Sergio Mattarella ratified Italy’s 2025 Budget Law, which incorporates the extension of tax concessions for the playing trade. This legislative transfer has garnered blended reactions from stakeholders inside the Italian playing sector.
Online Gambling License Extensions
The Ministry of Finance (MEF) has extended present on-line playing licenses for an extra fiscal yr. This extension permits operators to proceed their actions underneath present licenses earlier than transitioning to a newly established licensing system. The forthcoming framework mandates a €7 million authorization payment and imposes working charges of three%.
Land-Based Gambling Venue Concessions
Concessions for land-based playing institutions, initially set to expire in December 2024, have been prolonged by two years. This extension supplies the federal government with further time to reorganize rules regarding retail betting, horse racing, bingo, and gaming machines.
Transition to New Licensing Regime
The new on-line playing licensing framework was formally launched on December 19, 2024, following approval from the European Commission. Current license holders are required to transition to this new system by May 30, 2025, as stipulated by the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s Customs and Monopolies Agency. The €7 million license payment is structured in two funds: €4 million upon award and €3 million upon the graduation of operations, which should happen inside six months of receiving ADM’s approval.
Italian operators have expressed issues concerning the substantial €7 million payment for on-line playing licenses, arguing that it might disproportionately have an effect on small and mid-sized operators. The commerce physique Logico has warned that many operators would possibly decline new concessions due to the excessive charges and extra tax burdens. Moreno Marasco, President of Logico, emphasised, “The risk is weakening a sector that is the only bulwark against illegal gambling.”
Tax Adjustments and Revenue Projections
The Budget Law additionally introduces revisions to tax charges on particular playing verticals. For the net phase, gross gaming income (GGR) tax charges for sports activities and digital betting will improve from 24% to 24.5%. For on-line on line casino, bingo, and poker, GGR taxes will rise from 25% to 25.5%. The authorities anticipates elevating €481 million in new tax revenues in 2025 by means of these changes and the transition of on-line operators to the brand new regime.
In the retail playing sector, the sports activities betting tax fee has elevated from 20% to 20.5%, and digital video games have risen from 22% to 24.5%. Notably, fixed-odds horse betting skilled a major discount, dropping from 43% to 20.5%. These adjustments are projected to generate an extra €39 million yearly. The discount within the fixed-odds horse betting tax fee goals to revitalize Italy’s struggling horse racing sector.
Despite issues from home operators, international corporations view Italy as a development market inside Western Europe. In 2024, Flutter Entertainment expanded its Italian presence by buying Gruppo SNAI from Playtech for €2.3 billion, permitting it to function manufacturers comparable to Betfair, PokerStars, Sisal, and SNAI. Additionally, Pontus Lindwall, CEO of Betsson AB, expressed confidence in gaining market share in Italy’s on line casino and sportsbook markets. Evoke Plc, the guardian firm of 888, reported a 30% improve in Italian earnings, highlighting Italy as a important marketplace for the agency’s strategic restoration.
Industry analysts are intently monitoring these developments, as Italy may change into a brand new battleground for mergers and acquisitions in 2025.
Source:
Italy’s Gambling Tax Breaks Extended to 2025, sbceurasia.com, January 20, 2025.
