According to Greece’s Finance Ministry, the
online gambling market in the country is worth an estimated €2 billion. That’s a big enough reason for the government to want to tax it and create a revenue stream that may just help a little to get the Greek economy back on track.The Greek government brought in reforms recently much to the concern of the operators and the association which represents them the Remote Gambling Association. The basic problem was the tax rate at which operators were to be charged for their services to the Greek gambling clientele. The government was proposing an online gambling tax rate of 6 percent of turnover.
Clive Hawkswood, Chief Executive Officer for the Remote Gambling Association had previously said that the turnover tax is “simply not viable for operators in a highly competitive global market.” After some careful research by the independent firm KPMG on the proposed tax and it implications Hawkswood commented, “only a gross profits taxation model will provide value for consumers, a reliable source of revenue for the government and a healthy competitive environment for the industry.”
The more sensible tax structure proposed by the Greek authorities has industry insiders calling it a sign of hope. Getting the government to change from a turnover tax or value added tax to 30% gross profits tax is a wise decision. France made the mistake of imposing a high taxation rate and is seeing less than positive results for their actions. The Remote Gambling Association welcomes the change, although they say,“the 30% rate that has been suggested in Greece is higher than other jurisdictions, and we will continue our lobbying efforts to bring those more into line with other countries.”
There is conspicuous interest in the Greek online gambling market from large operators who would like a piece of the billions in play. The government plans to grant between 15 and 50, five year online gambling licenses in 2011, now with a much better tax structure than proposed before.
There is conspicuous interest in the Greek online gambling market from large operators who would like a piece of the billions in play. The government plans to grant between 15 and 50, five year online gambling licenses in 2011, now with a much better tax structure than proposed before.
source: on line casinos
