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Playtech predicts €20m drop in EBITDA following new Italian gambling tax

Playtech expects its 2019 adjusted EBITDA to fall by approximately €20m ($22.7m) to €25m following the implementation of a new gambling tax.

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The Italian Senate passed the government’s 2019 budget, which includes legislation to increase tax on various types of gambling activities, on Sunday.

This legislation is scheduled to take effect on 1 January 2019.

Among the major changes to gambling taxation in the country is a hike in online casino tax from its current rate of 20% to 25%; the government says this will generate an additional €50m in annual revenue for the state.

Online sports betting revenue will be taxed at a rate of 24%, up 2% from the previous levy. Meanwhile, land-based operators will see the same percentage increase to a tax of 20%, excluding horseracing.

The new tax rates are predicted to cost operators €30m per year.

Italian-licensed operators are already facing absolute bans on advertising and sponsorships that also take effect on 1 January 2019, although existing sponsorship deals will can run until 30 June.

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