Despite amendments being made, tax remains a key issue for the online gaming industry following the passing of igaming legislation by the Greek Parliament on Thursday.
The parliamentary debate last week over the Greek gambling bill saw a number of amendments, which included EU-based operators being allowed to continue advertising until licensed as long as they register for a special tax scheme.
It states: “Remote gambling and betting operators established in EU member states or countries of the European economic area and their operation and services have been duly licensed may continue to provide services during the transitional period until the implementation of the new online gambling legal provisions and the granting of the respective permissions, only if they immediately and voluntarily place themselves under the tax regime of articles 45 to 50 of this law, retroactively in the frame provided by article 78 paragraph 2 of the Constitution. Every relevant detail shall be determined by the Minister of Finance. The implementation of this paragraph shall not affect the respective exclusive jurisdiction of the Greek government, according to the provisions of this law, and shall not be deemed to ensure the granting of a licence under Article 45.”
Article 78 paragraph 2 of the Greek Constitution states that “a tax or any other financial charge may not be imposed by a statute that has effect prior to the fiscal year preceding the imposition of the tax.” Therefore, the retroactive effect of the above provision may only go back to January 1, 2010. Also, the “tax regime of articles 45 to 50” mentioned in the paragraph above refers to both the 30 per cent gross profits tax and the 10 per cent players tax.
The exact date of the tax implementation is still unclear and the industry awaits the Minister of Finance’s decision. It could go back to January 1, 2010, but it is thought that a Spanish style - from the point at which the legislation was agreed - will be pushed.
Other admendents made to the law, which include the removal of the 15-50 licence limit, as well as the removal of penalties for banks and ISPs, avoid potential European Commission competition complaints, are positive, but the central point and key issue is the tax and transitional period, as is parity with the part state-owned OPAP.
Clive Hawkswood from the Remote Gambling Association commented on the matter: “There have been some positive amendments to the legislation. However, it still poses some important issues for operators and their business models and a number of areas require further detail and clarification. Key to this is the scope of the transitional period and the implementation of a workable taxation regime. Ensuring an equitable and competitive market place involving private operators and the part state-owned OPAP is also an important factor. We hope to continue to have a constructive dialogue with the Greek authorities on those matters with the aim of ensuring a viable and EU compliant framework is put in operation to the benefit of government, consumers and remote operators.”
