Italian Lawmakers Push Proposal for 2% Football Betting Levy

A legislative proposal is currently under discussion in Italy, suggesting a 2 percent levy on football sports betting. This move, initiated by Italian parliamentarians, aims to generate additional revenue and could profoundly impact the financial landscape of betting providers and potentially football clubs.

The discussion around such levies is not new in Europe. States repeatedly try to increase their share of gambling industry profits. For sports betting operators, this often means a reevaluation of their business models and margins. Ultimately, higher costs could be passed on to players, or the offerings could become less attractive.

Numbers and facts

Italian lawmakers are pushing for a 2 percent levy on football betting. This percentage might seem small at first glance. However, such a levy can generate significant sums given the enormous betting volumes in football. The exact intended use of these potential revenues has not yet been publicly detailed, but it is expected that they could flow into the state budget or be used to support Italian sports. Another aspect is that this only affects football. Other sports would remain untouched by this special levy.

Background

The Italian legislators' initiative is not an isolated case. Many European countries struggle with the balance between regulating gambling, protecting players, and generating tax revenues. France, for example, has had a betting tax for years, which also takes a share of stakes or winnings. In Germany, the new State Treaty on Gambling 2021 (GlüStV 2021) also introduced extensive regulation, including a 5.3 percent tax on stakes for virtual slot machines and online poker. Such measures are often intended to strengthen the fight against the black market by making regulated offerings more attractive – a balancing act that does not always succeed. If taxes are too high, players switch to unregulated providers without player protection.

Why it matters for German players

The Italian legislative proposal has no direct impact on players in Germany. Germany has established its own strict regulatory framework with the State Treaty on Gambling 2021. Players in Germany can only play at online casinos that hold a German license from the Joint Gambling Authority of the Federal States (GGL). These providers are listed on the GGL's so-called whitelist.

The GlüStV 2021 introduced strict rules: a stake limit of 1 euro per spin for slot machines, a monthly deposit limit of 1,000 euros per player across all providers, and integration with the central monitoring system LUGAS. LUGAS ensures that these limits are adhered to and protects players from excessive gambling. Casinos with licenses from Malta (MGA) or Curaçao are illegal in Germany and offer no player protection according to German standards.

What it means for GGL-licensed casinos

For online casinos with a GGL license, this means they must adhere to existing German regulations. An additional tax revenue, as in Italy on football betting, is not currently planned, but the industry will closely monitor developments in other EU countries. Any new regulation or taxation in an EU member state can serve as a blueprint for other countries. German regulations are already very comprehensive and restrictive by international comparison. Compliance with strict rules, such as the 1-euro spin limit and the 1,000-euro deposit limit, is paramount for GGL-licensed providers. This ensures player protection but also reduces the attractiveness of some offerings for players who prefer higher stakes, often leading them to the black market. A quote clarifies the stance of regulatory authorities regarding player protection:

„Our goal is to ensure a safe and protected gambling market in Germany while promoting channeling into legal offerings.“ - Benjamin Schwanke, Board Spokesperson of the Joint Gambling Authority of the Federal States (GGL)

This illustrates the dilemma. On one hand, the aim is to secure revenue and provide player protection, and on the other hand, the legal offering must be attractive enough to compete against the black market. The Italian plans reflect the ongoing discourse within the EU on how to create a fair and secure gambling market that also takes into account the fiscal needs of states.