Greece to Propose new Online Gaming Regime in Eurogroup

greece-to-propose-new-online-gaming-regime-in-eurogroup

Little has changed in the iGaming industry of Greece since the first legislation was introduced on online gambling back in 2011. Now, internet gambling in Greece will once again be discussed on Monday at a very high authoritative level. Yanis Varoufakis, the Greek Minister of Finance, is bringing the matter to Eurogroup, as one of the seven proposed reforms to stimulate country’s growth.

Currently, twenty-four Online Gaming Providers are operating under a temporary licensing status in Greece.

They will now need to obtain a new 5-year license for €3 million and pre-pay a minimum tax of €1 million per year! Another reform’s highlight is the unchanged taxation system, which is set at 30% tax on GGR for every licensed iGaming operator. Also, e-wallets will be managed by a licensed Payment Service Provider by the Central Bank of Greece.

More specifically, according to the letter sent to Eurogroup, Greece suggests:

  1. Immediate, official licensing of existing Online Gaming Providers for a period of five years.
  2. A 5-year official Online Gaming license would require an immediate payment of €3 million, to be paid by the existing Online Gaming Providers.
  3. This licensing fee will apply to any additional Online Gaming Provider license granted.
  4. Each officially licensed Online Gaming Provider would have to pre-pay a minimum tax of €1 million per year, irrespectively of the actual volume of transactions and with the possibility that other taxes are waived. This tax will be paid at the beginning of each fiscal quarter.
  5. The taxation system for Online Gaming remains at current levels (note: 30% tax on GGR)
  6. The online gaming market must become cashless and based on Proof of Identity and with compulsory online gaming ‘pay-ins’ and ‘pay-outs’ either by a card (debit or prepaid) or an e-wallet, to be managed by an officially licensed Payment Service Provider by the Central Bank of Greece.

Greece expects public revenue through the taxation of licensed online gambling to exceed €500 million per annum.