Greek Online Gambling Taxation Scheme

March 29, 2011 | News Category: Gaming Law

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According to the Greek Finance Ministry, the online casino industry in Greece is worth over €2 billion. Since the country could really do with the additional funds that taxation of the online gambling industry would bring in, they are not planning to ban online gambling, as many other countries are attempting to do at the moment. In fact, the Greek government is trying to ensure that they get the best deal in online gambling taxation that they can in order to help them raise the necessary funds to get the Greek economy back on a stable level.

The Finance Ministry had considered that as a tax reform for online casinos that it would tax online gambling operators a turnover tax in the amount of six percent, taken from the total turnover. Representatives from the RGA (Remote Gambling Association,) and some online gambling operators have expressed some serious concerns over this possible turnover tax. The RGA and others who have expressed their concerns regarding the turnover tax need not be concerned about this, since Greece has made the decision to go with a Gross Profits Tax instead.

The taxation scheme that will now be used is a 30 percent gross profits tax. Although this form of taxation is certainly preferable to the previously chosen turnover tax, if the percentage of taxation remains at 30 percent, this is quite high when compared to other countries that have imposed the same type of taxation on the online gambling industry. The RGA has said that they will keep trying to get this rate lowered.

Gross profits tax is a more competitive type of tax scheme in the global market. This model of taxation gives a far higher value for the customer, and also fits in with a fair competitive environment in the online gambling industry, as well as offering a fair level of taxation for the government imposing the taxation.

A spokesperson from the RGA said: "We understand that that the government has approved a switch to GPT. We very much welcome [this move] as has also occurred in Spain following similar discussions, albeit that the 30% rate that has been suggested in Greece is higher than other jurisdictions, and we will continue our lobbying efforts to bring this more into line with other countries that have licensed remote gambling."

The change in the type of taxation gives online gambling companies the opportunity to survive, and even thrive, in the Greek market. The Greek government has plans to issue between 15 and 50 five year online gambling licenses this year. At this time, Greece has the sixth largest European Union online gambling market.