ITALY Law and Practice Contributed by: Stefano Sbordoni, Sbordoni & Partners
• slot (AWP) machines and VLTs regulated under Arti- cle 110, paragraph 6 of TULPS ‒ the tax is applied to the total turnover (ie, the total amount wagered by players); • sports betting ‒ the tax is calculated either on the amounts wagered or on the winnings paid out; • casino games (both land-based and online) (eg, roulette, blackjack, poker) ‒ the tax is applied to wagers or to winnings; • fixed-odds games (such as SuperEnalotto and oth- er lottery games) and instant lotteries (eg, scratch cards) ‒ the tax is applied to the amount wagered; • bingo (both in physical halls and online) ‒ the tax is applied to the total stakes collected; • poker and card games (both traditional and online) ‒ the tax is applied to the prizes distributed to win- ners; and • other skill-based games with cash winnings. The PREU is calculated as a percentage of the amounts wagered or winnings distributed. The per- centage varies depending on the type of game, but generally ranges from 10% to 20%, with different rates for each gaming category. By way of example: • for “new slot” (AWP) machines, the rate is 19.25% of the wagered amount; and • for VLTs, the rate is 6.25% of the wagered amount. The taxable persons for PREU are: • operators of slot machines and VLTs ‒ ie, those who manage the machine or the network of machines ‒ whether a physical venue (eg, bar, gaming hall, casino) or an online operator; • betting concessionaires – for sports betting or other forms of betting, the taxable person is the concessionaire offering the betting service, wheth- er online or through physical outlets; • casino game operators ‒ both land-based (the enti- ty that manages the casino and collects wagers) and online ‒ provided they are legally operating in Italy; • bingo operators (ie, the manager of the bingo hall), both physical and online ‒ here too, the PREU is applied to the wagers placed by participants; and
• remote gaming operators – meaning online gaming operators offering services such as online poker platforms, online casinos and instant games. The taxable person must pay the PREU to the ADM in accordance with the methods and deadlines estab- lished by law. Single tax The single tax, established by Legislative Decree No 504/1998, applies to all forms of betting and predic- tion competitions operating on the national territory, regardless of the operator’s headquarters. The 2019 Budget Law established differentiated tax rates based on the type of activity carried out, as fol- lows: • for remote skill games with cash prizes and online bingo, the tax rate is 25% on amounts not returned to the player according to the game rules; and • for fixed-odds bets (excluding horse race bet- ting), the tax rates are 20% for land-based gaming collections and 24% for online gaming collections and they are calculated based on the difference between the amounts wagered and the winnings actually paid to players (GGR). The taxable base is: • for betting pools, the amount paid by the partici- pant for the game, net of fixed fees and compensa- tion to the bettors; and • for betting, the amount wagered for each bet. The following are liable for this tax: • those who manage betting and sports betting competitions – whether licensed or not – using any means (including electronic means) on their own behalf or on behalf of third parties located abroad (Article 3 of Legislative Decree No 504/1998); and • owners of betting shops operating on behalf of bookmakers, even if they do not directly participate in the betting risk (Article 1, paragraph 66, letter b of Law 220/2010).
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