As with many types of products and services, gambling is also subject to taxation . Italy is no exception. And sometimes players ask themselves questions about gaming taxes. Specifically, they ask themselves : should game winnings be declared? Or more specifically: should slot winnings be declared?
Tax on luck
We try to answer these questions and to clarify the possible taxation of winnings. Let’s start by saying that over the years the gaming sector in Italy has had to face several changes and innovations in its regulation. And recently the Dignity Decree has heavily intervened in the sector.
Taxes have also been touched on several times. Years ago gambling luck was not taxed . Whoever won with Scratch and Win or Enalotto or with Win for Life games did not have to worry about anything: they did not suffer any taxes from the state. In recent years, however, things have changed a bit.
Since 2012, lotteries have been hit by a 6% tax on winnings over 500 euros . From 2017 then new changes have arrived, distinguishing the various games. There are casino ones, there is lotto and there are scratch cards. The PREU , or the single tax levy, has brought taxation to even 19% in some cases.
What changes in Italy with the Dignity Decree?
In July 2018, the much discussed Dignity Decree, strongly desired by the Conte government, was approved in Italy . And with the Decree, the taxes on gaming offered by online casinos and land-based casinos have further increased. As if that weren’t enough, the Decree also banned many types of advertising for gambling, hitting online portals and soccer teams, just to name a few.
In September 2018, fees rose to 6.25% for Vlt and 19.25% for slots . But this increase was just the beginning of a path that will theoretically lead to higher tax growth through 2023 .
The progressive taxation calendar of the PREU provides for a percentage of 6.68% for the Vlt by 2020 and of 6.75% by 2021. As regards the slots, it rises to 19.68% by 2020 and 19, 75% by 2021. Finally, in 2023 we should find ourselves at 6.6% with the Vlt and at 19.6% with the slots.
The Italian taxation on online gaming winnings is one of the highest in Europe . Will this serve in the future to reduce the desire for gambling of Italians? For the government perhaps yes, but many doubts remain. Maybe the game will simply become less convenient for all those who want to operate legally?
But does the player have to declare his winnings?
We come to a crucial point in the tax discourse. And let’s say that for all online casino games there is a single tax in Italy. This means that there are no consequences or special duties for the player: the source , or the operator, always pays.
So in other words, the winning player does not have to worry about declaring the winnings, as they are already taxed before reaching his pockets, as long as these are obtained on platforms authorized by the Autonomous Administration of State Monopolies ( AAMS ) or by the Agency Customs and Monopolies ( ADM ).
Otherwise, that is when the winnings come from an unauthorized casino, the obligation to declare the winnings as income is triggered . This gives you one more reason to always select only casinos licensed by AAMS or ADM . It is certainly better to avoid paying taxes on winnings and avoiding the Revenue Agency checks. Furthermore, unpleasant surprises related to poor security are avoided.
In summary, therefore, the player will have to declare their winnings only if they are earned on gaming platforms and online casinos that are not AAMS and ADM certified . The advice to sleep peacefully in this respect is to have fun playing exclusively on a secure online casino like Gioco Digitale. In addition to not having to think about the tax aspect of your winnings, you will also have the advantage of playing your favorite games in total safety.
