Italian gambling incumbents will not be given any relief as the newly installed 5Star-DP coalition government announces the fourth set of tax hikes on gaming machines allowed over the past year.
Inbound with the first’ Budget Law ‘ decree of 5Star-DP, Italian gaming is facing a 9% rise in the turnover tax on video lottery terminals (VLT)–previously set at 7.9%.
In the meantime, arcade operators will have to change their Amusement-with-Prize (AWP) system portfolios to another hit, as the government raises taxes from 21.6% to 23%.
The 5Star-DP coalition headed by PM Giuseppe Conte claims in its mandate that machine taxes on the 150,000 gaming machines in Italy will squeeze an estimated € 650 million from the gambling sector of the country.
The Budget Law has been sent to the European Commission (EC), which will review its actions to ensure that 5Star-DP has established a fiscal policy compatible with the deficit goals of Italy.
5Star-DP will push to install the new device tax charges by February 10, 2020 if the decree passes its EC test.
In addition to machine tax increases, incumbents of Italian gambling should not expect an easy end to the year as 5Star-DP reports that it will set up its toughest position on gambling transactions and monitor money laundering activities.
The new government of Italy would require all licensed owners to sign a ‘ mandatory register ‘ regulated by the Customs and Monopolies Agency of Italy (ADM).
With additional powers given to the ADM, the government will allow its department to prohibit banks from handling gambling companies ‘ transactions without an Italian license–with the agency authorising fines ranging between € 300,000 and € 1,3 million to non-compliant banking institutions.
The new Italian government is seeking stronger regulation and control over the funding of gambling companies by the ADM, in order to avoid another Glassia Inquiry revealing AML loopholes in gambling.