The Revival Decree introduced in May changed the taxation rules in the Italian betting sector. With the intention to save sports, an additional 0,5% fee from all online and offline bets was imposed. After several discussions, Flutter Entertainment reviews the variant of leaving Italy, where its constituent Betfair has 96% of the bookmaking market.
A lot of spheres of human activity were affected by the global lockdown caused by coronavirus spreading. According to the latest betting news, sports events suffered a severe downfall in revenues due to absent viewers, especially those not relying on the broadcasting popularity. Italy decided to help its sporting sector and implemented the Revival Decree that was aimed to help suffering spheres.
Even though the new rules' adoption was challenging and met massive opposition, the Italian government imposed an additional 0,5% tax rate on all types of bets made both online and offline. Despite the fact that the decision was made in May 2020, a new wave of dissatisfaction arose.
Thus, the horse racing sector now is underfunded, according to Guiseppe L'Abbate, who is an undersecretary for agriculture. It means that additional taxes are hitting the already sick area. In order to decrease the financial pressure, the director of Italian customs and monopolies Marcello Minenna was called to exclude horse racing from the renewed taxation burden.
Flutter Entertainment's bookmaker Betfair warns it can quit Italy
Although the issue of horse racing is essential and somewhat debatable, it is not so huge as the possible Betfair exit from Italy's bookmaking market. Having a 96% share of the local betting sphere, Betfair's quitting may strongly hit the expected taxation rates. There are no doubts that the opened niche will attract new bookmakers, but the transitional period is always hard, especially during the crisis.
Flutter Entertainment has already asked to review the introduced rules as the recent situation makes it impossible to hold the business in Italy. The company questioned how the taxes are calculated and even suggested to replace the 0.5% turnover rate with GGR fees.