Gaming giant Playtech says it is facing an additional tax bill of up to €25m after the Italian Senate yesterday approved the country’s revised budget, in accordance with the deal agreed with the European Commission last week.
The budget – which curbs the administration’s spending plans somewhat, lowering Italy’s 2019 deficit target from 2.4 per cent to 2.04 per cent – now passes to the lower house for final approval.
The legislation seeks to increase taxation on various types of gambling activities. Tax on AWP gaming machines and video lottery terminals will rise from January 1, while there are also increases in betting tax, to 20 per cent, and online gaming tax to 24 per cent.
In a statement, Playtech said it currently estimates that this is expected to reduce its 2019 Adjusted EBITDA by “approximately €20-25 million” before any mitigating actions.
The expected impact from this legislation is in addition to the previously announced impact from the 2018 Dignity Decree, the company said.