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The Italian gambling authority, AAMS, has now approved regulations concerning bets on virtual events which because of their tax treatment might have a considerable impact on the Italian sportsbetting market.
The regulations just approved provide quite stringent requirements with reference to the virtual events platform, the mechanic of the games and the required approval process with AAMS, while no additional license will be required for operators whose license already covers fixed odd sportsbetting games. But one of the most interesting elements of such regulations concerns the applicable tax which will be equal to 20% of gross profits as opposed to the taxation applicable to fixed odd sportsbetting games which is between 2% and 5% of the turnover (i.e. the value of the bet) depending on the number of events covered by the bet.
This means that in practical terms operators will be fostered to push their players to gamble on virtual events rather than the traditional fixed odd sportsbetting events and the same will occur with the upcoming betting exchange games that will enjoy the same tax treatment.
Hopefully this will be the first step towards a gross profit tax treatment also for fixed odd sportsbetting games that will be shortly boosted following the approval of regulations allowing the placing of bets on events and types of bets not included in AAMS official schedule through the so called “palinsesto complementare”.
Therefore Italy will still be a country to watch very closely and as usual if you want more information feel free to contact me, Giulio Coraggio.
