London-listed online gaming software supplier Playtech has reportedly agreed to pay around £25 million to the Israeli tax authorities, following a civil tax audit covering the period 2008 – 2017.
The settlement was reached on the last day of 2019, following some “transfer pricing adjustments” made by the tax authorities, with the bill expected to be paid by the end of January. It will be recorded as an exceptional item in Playtech’s 2018 accounts.
Things have been getting tough for the supplier, which acquired Italian betting group Snaitech for around €850 million in June, with its earnings expected to take an additional hammering of up to £22.5m (€22m) in the coming year due gambling tax increases in Italy.
Following the draconian advertising ban under the so-called ‘Dignity Decree’, Italy’s far-right government has further demonstrated its open hostility towards the gambling industry by hiking tax on online casino revenues from 20% to 25%, and online sports betting revenues from 22% to 24%.
