Italy’s sports betting operators will have a higher than expected temporary pandemic-related turnover tax, although it will run for a shorter period than expected.

This week, Italy’s government issued the final text of its so-called Relaunch Decree, which lays out the parameters of the country’s plan to restart its economy after most retail operations were ordered closed to limit further spread of the COVID-19 coronavirus.

Earlier drafts featured a 0.75% tax on all betting turnover – be it land-based, online or virtual sports – with the proceeds earmarked to help the nation’s sports sector emerge from its pandemic hibernation.  This rate was reduced to 0.3% in later drafts, with the stipulation that the tax would remain in effect until December 31, 2022. 

The definitive draft now calls for a 0.5% tax rate, but the government shortened the tax duration by one year, meaning it will only apply through December 31, 2021. The government has kept the previously stipulated sums to be collected via this tax at €40m this year and €50m in 2021, although these are now maximums rather than minimums.