No respite will be offered to Italian gambling incumbents, as the newly installed 5Star-DP coalition government confirms the fourth set of tax hikes on gaming machines sanctioned over the past year.
Inbound with 5Star-DP’s first ‘Budget Law’ decree, Italian gambling faces an increase in video lottery terminals (VLT) turnover tax to 9% – formerly set at 7.9%.
Meanwhile, arcade operators will have to adjust to a further hit on their Amusement-with-Prize (AWP) machine portfolios, as the government increases taxes to 23% from 21.6%.
In its mandate, the 5Star-DP coalition led by PM Giuseppe Conte believes that machine taxes on Italy’s 150,000 gaming machines can squeeze an additional €650 million from the nation’s gambling sector.
The Budget Law has been forwarded to the European Commission (EC), who will review its measures to make sure that 5Star-DP has presented a fiscal policy compliant with Italy’s deficit targets.
Should the decree pass its EC review, 5Star-DP will move to install the new machine tax charges by 10 February 2020.
Further to machine tax hikes, Italian gambling incumbents should expect no easy end to the year as 5Star-DP informs that it will install its toughest stance on gambling transactions, monitoring money laundering activities.
Italy’s new government will force all licensed incumbents to sign-up to a ‘mandatory registry’ controlled by Italy’s Customs and Monopolies Agency (ADM).
Sanctioning additional powers to the ADM, the government will allow its department to prohibit banks from processing payments for gambling companies without an Italian licence – with the agency allowed to sanction fines ranging from €300,000 and €1.3 million to banking institutions that do not comply.
Italy’s new government seeks for the ADM to have greater oversight and control on the funding of gambling enterprises, wishing to avoid a further Glassia Investigation exposing gambling AML loopholes.