The growth rate of Online Casinos in Italy has slowed down in the month of October. This happened after the Government has shown the intent of taxing the winnings of the punters.
The data from Agenzia Delle Dogane e Dei Monopoli (ADM), the regulatory body of Italy shows that the locally licensed Online Casinos have generated revenue of around €65.7m. Now, on a year on year basis, this is 1.2% more than the October last year. However, if the revenue generated is compared to month-over-month then the real picture comes out. The online casinos generated around €71.8m in September, this year. The annual growth now has suddenly slowed down. The online casinos have shown stupendous growth rate in double digits in Italy. In September, the industry recorded a massive 22.4% growth on a year on year basis. The growth of October is the first time when the industry has reported a single-digit growth rate.
The PokerStars of The Stars Group has remained the most popular online casino brand. It has 10.6% of October’s revenue contribution, the highest by any. Sisal remained at a close second with 9% of the contribution. Snaitech contributed 8.3% whereas Lottomatica is in fourth place with 8.2% of the contribution.
The Sports Betting market also had a very poor month. In October, the revenue was down by 3.5% for the sports betting and the revenue was €128.7m. The online betting revenue was recorded at €56.5m which is down by 0.7%. The retail wagering also fell by 5.6%. The retail wagering has been recorded at €72.3m. The online revenue share for Bet365 is the most which are 14.8%. SKS365 had 14.2% of the share and Snaitech contributed 13.7% in the online revenue.
The wobbling revenues continued in Online Poker as well in October. The cash game which generates much revenue was down by 7.6% to €4.9m. The tournament revenue performed even worse and fell by 13.5% to €5.8m. PokerStars held the lion share for the online poker. It has a 43.3% share in the cash game and a 58% share in the tournament game.
Many believe that the restrictions on gambling advertisements may have caused a decline in revenue. However, it cannot be clearly told. The operators and the broadcasters are feeling the heat of the decision, however. The government, however, has reported the revenue from gambling as €11.53b for the first three quarters of the year. This is 7.6% more from the same period last year. However, with the new decline, the numbers might decline in the fourth quarter.
There have been budget changes for the government in recent times and that would only project higher revenue. It is predicted that the Government would make €700m more in 2020 and €600m in 2021 additionally thanks to the budget changes. This is mostly because of the gaming machine tax which has been increased.
The government has already confirmed that there would be a new tax on gambling winnings. The government said that a 1.9% of tax on the video lottery terminal would be imposed for the winning of under €500. There is no tax for this now. The rate is going to come down to 1.2% in 2021 again. However, the tax on the winning for more than €500 would be increased to 15% from the current 12% from 2021.
Now, the experts believe that if there is no change in the tax regime, then the October slump is the new normal for the Italian Online Casinos industry.