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Czech Warning on High Online Gambling Taxes

Friday August 31,2012 :  CZECH GOVERNMENT WARNED ON HIGH ONLINE GAMBLING TAXES
 
Killing the goose that lays golden eggs?
 
The Czech government's predilection for continual tax increases on both online and retail gambling companies could result in a movement to more tax-friendly crimes, gambling companies warned this week.
 
The warnings followed the latest tax on Czech-based companies that run betting shops and online betting operations, implemented in January 2012 and justified by government as being required for the country to comply with European Union rules to reduce the Czech fiscal deficit to no more than 3 percent of gross domestic product next year from slightly higher than 3 percent last year.
 
Companies that take bets on sport events, political elections and similar propositions now pay a 20 percent tax on gross wins on top of a corporate income tax rate of 19 percent, the Wall Street Journal reports. The tax is nearly double that of Poland's 12 percent, and almost four times that of Slovakia at 5.5 percent.
 
Michal Veprek, CFO of the Fortuna Entertainment group - the largest betting operator in Central Europe, said that his company paid over Euro 4 million in taxes in the first half of 2012, placing the company at a competitive disadvantage with foreign rivals in the Czech market who paid nothing.
 
Chairman Wilf Walsh said taxes seriously impacted a company's finances, noting that although Fortuna posted a 15 percent annual increase in gross wins and a 10 percent annual increase in revenue from bets and lottery, net profit fell 35 percent on the year largely due to gambling tax.
 
He said that the company has established a Malta operation and is ready to switch to an offshore registration...not the company’s preferred option, but one that would lead to a lower tax bill and protect shareholder value while increasing the probable dividend pay-out.
 
“If the situation doesn’t improve by the next Annual General Meeting of shareholders, we propose [to move] operations to Malta,“ he said.
 
Fortuna also has a shell company in Hungary as an offshore platform closer to home, the CFO added.
 
“In case taxation worsens, we have a safe haven where to move,” he said.
 
Sales of diesel fuel in the country are already declining due to tax increases that have forced users to buy cheaper fuel in neighbouring countries, but the government remains adamant that more taxation - including a one percent rise in VAT and higher income tax on upper bracket earners - is necessary.
 
Economists have warned that the increases are likely to prove counter-productive in both the short and long run.

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Gambling News :

Amaya FY2016 Trading Update - The Montreal-based Amaya online gambling group has issued a trading update covering FY 2016 and improving its forecast revenue and earnings numbers.

Another Mega Fortune Dreams jackpot for Euro 3.5 million - In a statement Friday NetEnt advised that the lucky player is a 62-year-old woman from central Finland who won the seven-figure sum from a Euro 1 stake.

Stanleybet has filed a legal action against the government of Cyprus - Bookmaking firm Stanleybet has filed a legal action against the government of Cyprus, claiming Euro 12.5 million as compensation for what it claims is loss of profits and opportunities, prejudice to image and business reputation and legal costs.

LeoVegas To Sponsor Leicester Tigers - The agreement includes official partner accreditation, media space at Welford Road stadium and matchday tickets and VIP hospitality as well as two pitchside perimeter boards from the 2017/18 season and one for duration of the 2016/17 season.

Optima Information Services iShop - Industry visitors to the recent TVC Bookmakers Trade Fair in Solihull, UK were much taken by Spanish betting technology firm Optima Information Services' iShop product, and the company went on to win the SBC Best Retail Betting Product award with it last month.

Golden Nugget Las Vegas Launches New Betting App - Golden Nugget Las Vegas has unveiled a sports wagering app offering Nevada punters the comfort and convenience of being able to wager from anywhere in the state.

CAGAYAN CHIEF MOVES TO REASSURE LICENSEES - Apparently $4 million is going into improvements of the Authority’s data centre in the Freeport at Cagayan, whilst another $3 million has been earmarked for an upgrade to data infrastructure located outside the Freeport.

New Massachusetts Online Gambling Bill - It seems that every two years (give or take a few months) Massachusetts state Senator Bruce Tarr flights an online gambling legalization bill in the state Senate.

Las Vegas Sands Fined for foreign bribery allegations - #lasvegassands Las Vegas Sands, the land casino company owned by multi-billionaire US mogul Sheldon Adelson, has again had to cough up a stiff penalty for non-compliance with the law.

Libratus AI Program Destroying Human Poker Opponents - #Libratus With 40,340 hands played (about a third of the 120,000 planned) Dong Kim is down $29,506, whilst Jimmy Chou ($113,7728), Daniel McAuley ($141,877) and Jason Les ($186,489) are all carrying losses.

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