Reactions of OPAP agents for the tax on player profits

POEPPP (Panhellenic Federation of Professional Gambling Forecasting Agents OPAP SA) expresses its deep dissatisfaction and opposition to a new taxation on the profits of players in gambling with a letter to the Ministry of Finance.

“The fact that the ministry promotes the doubling of the tax rates on the profits of players in the number games played by our agencies (from 2.5%, 5% and 7.5%, to 5%, 10% and 15%, causes an unpleasant impression. respectively), as well as the increase of the respective rates on the winnings of the players from betting products (from 2.5%, 5% and 7.5%, to 3%, 6% and 9% respectively) ”, notes POEPPP in her letter.

He continues: “As POEPPP, we must express our deep dissatisfaction and opposition to this sudden and untimely action, which directly affects the revenues and viability of the 4,000 OPAP agencies and their approximately 20,000 employees, at a time when our stores are still subject to strict restrictive measures for the pandemic ”.
The full letter is as follows:

With particular surprise, we were informed by the management of OPAP, after today’s meeting with officials of the Gaming Supervision and Control Committee, about the intention of the Ministry of Finance to proceed with significant increases in the taxation of players’ profits.

An unfavorable impression is the fact that the ministry promotes the doubling of the tax rates on player profits in the number games played by our agencies (from 2.5%, 5% and 7.5%, to 5%, 10% and 15% respectively ), as well as the increase of the respective rates on the winnings of the players from betting products (from 2.5%, 5% and 7.5%, to 3%, 6% and 9% respectively).

As POEPPP, we must express our deep dissatisfaction and opposition to this sudden and untimely action, which directly affects the revenues and viability of the 4,000 OPAP agencies and their approximately 20,000 employees, at a time when our stores are still subject to in strict restrictive measures for the pandemic.

Unfortunately, we are witnessing tax irrationality again and we are reliving the events of 2020, when in the middle of a lockdown, the Ministry proceeded to adopt the new scale of player taxation, going from taxation per column, to taxation per ticket, with a rate of 2.5%, % and 7.5%. Then, as today, OPAP agents were excluded from any consultation process. And then, as today, none of the data we provided you was taken into account.

By the end of 2020, we had pointed out that the new tax scale would lead to significant burdens for players, leading many of them to illegal gambling and causing blows to the revenues of the State and the income of OPAP agents, who have “knelt” from ongoing economic and health crisis.

We assume that the reason you intend to proceed with rate increases is that the expected revenue to support sports teams has not been achieved. If with the initial scale you set, the goals were not achieved, what makes you believe that you will achieve them now, when additional charges are created for the players and the illegal gambling benefits again?

As in 2020, so today, we reiterate that taxation of winnings per ticket alters the physiognomy, odds and winnings of column games, ie number games and betting. Large-scale taxation, even for small amounts – as promoted by the new scales you intend to impose – is plagued by so-called “game recycling”, a practice in which some players re-play some of the money they have won, which is directly related to the turnover and viability of our stores.

After all, from the data and studies that we have at our disposal and that we had brought to your attention again, it turns out that the results of such tax practices are completely contrary to expectations. In most countries internationally (for example Austria, Belgium, Finland, Ireland, Sweden, the United Kingdom, etc.) there is not even a tax on players’ profits, so that they remain in the legal gaming networks and prevent serious social problems. At the same time, all these countries recognize that the strengthening of state revenues can be achieved by combating illegal gambling – a direction that we believe the Greek state and government should follow.

Apart from the above, the fact that the Ministry is promoting new, worse changes causes a particularly unpleasant impression when the scale that is in force today, was implemented only in July 2021.

In conclusion, we reiterate our belief that the promoted changes bring another blow to our industry, targeting all of our revenue (number games and betting). As a POEPP, we refuse to accept that our views and substantiated views are ignored once again.

Balanced solutions must be found immediately, with respect for all.
We demand an immediate meeting with you and a review of the measures that are coming to further hurt our industry, which is receiving backlash from your misguided choices “.