Greece introduces new digital licensing platform.
Last Thursday (10.10.), the Greek Ministry of Development and Investment shared new regulations for awarding online gambling licenses. For some, the costs will be discounted while taxes still remain high. The Greek gambling industry is currently being overhauled, so here's an outline of what's going on.
35% tax remains unchanged
Early Thursday morning, the Greek Ministry of Development and Investment presented a brand new draft law for granting online gambling licenses to the Greek parliament. Coming after the publication of a first amendment to the law in September the previous year, the Greek online sector is undergoing another reform. The new draft is quite different from its predecessor and is likely to disappoint potential licensees. Greece's new online gambling strategy still includes a drastic 35% tax levy on all gross gaming income from online casino games and sports betting.
The tax levy encompasses all casino games and sports bets, but the timing of when the taxes are collected has been changed: Corporation tax must now be collected first, effectively raising corporation tax overall. The new version of the law abolishes a section from 2011 that allowed operators to subtract online gambling tax before corporation tax. In other words, operators now have to pay corporation tax on a third of their revenue. In addition, operators are no longer permitted to deduct the cost of their licenses or other fees from their corporation tax obligations.
Expensive license conditions
The draft stipulates that the license fee for online sports betting will be €3 million, which is €1 million cheaper than the initial proposal. However, the license fee for other types of games, like online casinos and poker, has doubled to €2 million. On top of this, there's a €10,000 fee just to participate in the licensing process.
To obtain a Greek license, online providers must meet several criteria. Firstly, they must be based in Greece or another EU country. But the gaming server data must be located in Greece. This means the respective provider must have a .gr domain. Also, all data must be stored for ten years.
Furthermore, a deposit of €200,000 is required, alongside a deposit of €500,000. Operators must submit their annual reports from the last three years, as well as documents related to taxes and insurance, and proof of financial stability. If all these criteria are met, licenses are typically issued within two months of receiving the application. Licenses for companies on the HGC blacklist are not included in the process.
Extensions and validity
Changes have been introduced concerning license validity: In the future, a license will be valid for 7 years rather than 5. All of the aforementioned fees apply when operators extend their licenses, as long as they indicate their intention to do so a year in advance. The 24 online operators granted temporary Greek licenses in 2011 can continue to operate under their licenses until 31 March 2020. Operators who don't submit a new online application must close down their local operations within a month of the new Greek law being implemented.
Another significant update to the draft allows operators to offer online sports betting and online casino games based on the Random Number Generator (RNG) in the future. Initially, the license conditions from September didn't allow foreign providers to offer RNG-based slot machine games at Greek online casinos.
However, there are restrictions on marketing: all affiliate marketing partners of online operators must pay a €1,000 fee and register with the Hellenic Gaming Commission (HGC). All licensed providers are banned from running Greek promotions with unlisted HGC affiliates.
An eye on competitive safety
We don't know whether the plans will be subject to further adjustments before being enforced. In the meantime, the ministry did reveal an agenda with strategic reasons for the regulatory strategy: first and foremost, it's about ensuring safe competition between market players. Secondly, player safety is guaranteed. Thirdly, the plan is designed to attract investors. Fourthly, state revenue is increased. Finally, player protection is enhanced.
Additionally, Greece is working on its land-based casino business. At the moment, the focus is on who will be awarded Greece's Hellinikon casino license. The location is the Athens airport of the same name, which has been closed since 2001 and is set to become a luxury casino costing over €8 billion. According to the HGC, numerous industry giants have applied for the license, including Hard Rock (Florida), Mohegan (Connecticut), and Caesars Entertainment (Las Vegas). We'll see who emerges as the winner.
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Source: www.onlinecasinosdeutschland.com
