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Over taxation is counter-productive For Online Gambling
Wednesday April 30,2014 : HIGH TAXATION NOT A GOOD IDEA IN ONLINE GAMBLING
Over-taxing operators reduces the ultimate take for governments and sends players to riskier, unlicensed sites.
The Bruno Leoni Institute in Italy as concluded from a recent study what operators have been complaining about for years - over taxation is counter-productive and results in weaker player protection as punters are driven into the arms on unlicensed operators who can make better offers.
Reporting on the Leoni study titled “Gambling: More Taxes, Less Income,” this week, the publication Pokerfuse reports that the Institute found that Italian online poker tax rates are second only to those of France in severity, and are having the same dampening impact on the ring-fenced national networks.
Marginal taxes on poker tournament entries are 27.3 percent and 25 percent on cash games, compared with similarly high rates in France of 25 percent and 37 percent.
For Italian operators, the impact has been considerable, with declining profit margins and game volumes, illustrating the negative influence which over-taxing exerts on pay-out percentages and promotions.
For players, the increased operating costs result in less attractive offers, prompting their departing to more tempting venues that are not licensed or regulated in the national jurisdiction, and may be riskier in terms of consumer protection.
“The main alternative to legal gambling … is not non-gambling but, in many cases, illegal gambling. This is especially true for online gambling, considering that foreign sites, even if illegal, are easily accessed,” concludes the Leoni report, noting that enforcement initiatives have not deterred illegal operators from offering their services to French and Italian players.
The Institute's recommendation to the Italian government is to reduce tax levels in order to support and help the legal industry to be more competitive against illegal operators, bringing players back from the illegal sector where they will be safer and will ensure businesses grow.
Pokerfuse notes that the regulated and legal Italian online market has been in decline for over two years.
3 Top Bitcoin Poker Sites -
Bitcoin, in particular, is a cryptocurrency that you can use on various online poker sites and it allows a faster and cheaper way to get money into and out of the online poker site.
Kentucky Derby Odds: Justify still Favorite -
With all the races on the Road to the Kentucky Derby complete, Justify is still on top of the odds list at 4/1. But he’s got company: Mendelssohn (9/2), Audible (11/2) and Magnum Moon (8/1) are all very much in contention for the big race on May 5.
888Poker Takes Over the States -
With more and more states moving toward online casino integration, an increasing number of international players are moving in on American territory. Who will take the crown of the most popular online poker venue in the United States?
Top gambling ICOs to watch this year -
The gambling ICOs that are being launched in 2018 are of better quality. Unlike the last half of 2017 when ICOs were numerous, the first few months of 2018 have seen a big drop in number.
MPN Poker Tour Bratislava | Day 2 -
It was a hard fight around the bubble, culminating in the elimination of Georgios Drakakis in 46th place. He received a surprise consolation entry into the next MPNPT stop in Sunny Beach, Bulgaria (5-8 July), which softened the blow of missing out on a €900 min-cash.
MPN Poker Tour Bratislava Day 1B -
Dorey Captures Chip Lead After MPNPT Bratislava Day 1b Triples 1a Field Size. The second flight of the €550 MPN Poker Tour Bratislava Main Event is in the bag, and so are the chips of 97 players who will be returning along with the 26 Day 1a survivors to fight to the money and beyond today
MPN Poker Tour Bratislava Day 1A -
The MPN Poker Tour has arrived in Bratislava for the very first time, bringing with it the Tour’s friendly mix of local and globe-trotting poker enthusiasts, pros and qualifiers to the beautiful Slovakian capital.
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