Over the course of seven years, Italy has gone from online gaming neophyte to one of the more respected European jurisdictions concerning the regulation of online gaming.
In 2006 Italy introduced regulations for land-based and online gambling allowing companies to operate sports betting at retail locations and over the Internet as well as regulations for remote and land-based casino gaming. As most of the European Union increased restrictions on online gambling, Italy by contrast liberalized its policies.
In 2009 Italy implemented several regulations that reorganized the framework for online gaming and (for the first time) regulated the "live sport poker." And in 2011, the process of acquiring remote gaming licenses and complying with them was updated. Also, operators holding an Italian license were also given the right to legally offer poker games and casino games, excluding slots, to their players. Italy added online slots to the mix in late 2012.
In order to qualify for an Italian remote gaming license, operators need to be licensed and established within a European Economic Area (EEA) state and have a permanent link-up with the Autonomous Administration of State Monopoly’s (AAMS, the Italian licensing authority) centralized system for compliance, monitoring, and tax purposes. Gambling companies incorporated in Italy are subject to Italy's 27.5% corporate income tax rate. Gambling companies must also pay a regional tax of between 2.98 and 4.82% based on the region in which they were established.
Italian taxes on wagers range from 3 to 20%, depending on the type of wager. Exchange wagering, for example, carries a 20% tax on gross gaming revenue. Italy also employs a 3.5% turnover tax on sports betting.
The Italian online gaming market has turned into a lucrative one. In 2012, it generated €749 million in gross gaming revenue. With online slots only available for one month in 2012, the 2013 revenue numbers (not available as of this writing) should be significantly higher.
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