Italy is Enforcing Tax on On-line Gaming winnings


Will the Italian enforcement efforts to force reporting of on-line gaming winnings be implemented in the U.S.? How will the sites adapt to the reporting requirements? The following article is of interest on these points.

Online Winnings To Be Included In Italian Tax Returns, by Ulrika Lomas,, Brussels Wednesday, January 05, 2011

On-line winnings, whether through betting or other games, are classified as ‘other income’ and therefore should be included on an individual’s tax return.

This was clarified by the Italian Revenue Agency, in a tax resolution issued on January 3, 2011. The Agency stated that all of the income from winnings realized on an online website that does not have an establishment in Italy, and which, therefore, does not withhold Italian tax at source, should be declared on a taxpayer’s return. Such income is subject to personal income taxation on the entire amount, without any allowable deduction for expenses incurred.

The Agency also explained that, if the taxpayer operates his gaming online by way of a non-interest bearing foreign bank account (with an example quoted of winnings made on an online casino by way of an account held by a financial intermediary in the Isle of Man), running the account could be classified as an external financial activity, subject to monitoring.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sanford Millar, Law Offices of Sanford I. Millar | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »


Reporters on Deadline

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.