Greece Stands Firm on Online Gambling Tax Increase

Greece’s government has reaffirmed its decision to increase taxes on online casino winnings, maintaining that the higher rates will generate additional funding for public services despite concerns about the potential impact on the regulated gambling market. Finance Minister Kyriakos Pierrakakis has continued to support the measure, which came into effect on 1 July 2026. The changes increased taxation on online casino winnings between €100 and €500 from 15% to 20%, while prizes exceeding €500 are now subject to a 30% rate, compared with the previous 20%. Winnings of up to €100 remain tax-exempt. The government initially announced the increase in March, presenting it as an additional source of public revenue that could help finance support for households and businesses facing higher energy costs. Pierrakakis estimated that the measure would generate approximately €100m annually. “This intervention will increase public revenue by about €100m a year,” he said, according to SBC News. The administration has maintained its position despite opposition from parts of the gambling industry, arguing that the online casino sector has expanded sufficiently to justify a greater contribution to state finances. Figures released in October provide an overview of gambling-related tax receipts during the first eight months of 2026. Taxes withheld from gambling winnings reached €369m between January and August, representing a 27.3% increase from the €290m recorded during the corresponding period in 2025. Total gross gaming revenue (GGR) across the wider gambling market also increased, rising 4.2% to €2.06bn. Meanwhile, the state’s participation receipts from gambling operators climbed 7.9% to €484.5m. However, the published figures cover the broader gambling industry and do not establish how much of the increase in tax receipts resulted directly from the July changes to online casino winnings. Government Addresses Concerns Over Unlicensed Gambling Deputy Finance Minister Thanos Petralias has provided a detailed defense of the government’s approach, particularly regarding concerns that higher taxation could encourage players to use unlicensed gambling websites. Speaking alongside the announcement of the policy, Petralias said officials had considered the possibility of customers changing their gambling behavior in response to the increased rates. He explained that the government examined operator data and incorporated demand elasticity into its revenue calculations before approving the changes. According to Petralias, the rapid expansion of online casino games and poker created grounds for increasing the sector’s contribution to public finances. He also argued that a larger share of the industry’s growth should benefit the state, allowing the government to direct additional funds towards citizens and future public measures. The deputy minister stressed that the tax changes have a specific scope. They apply to online casino-style products, including slots and poker, while sports betting and other OPAP products continue to operate under separate taxation arrangements. Petralias also pointed to legislative measures targeting illegal gambling as an important part of the government’s response to potential market disruption. The authorities intend to strengthen enforcement to reduce the opportunities available to unlicensed operators and protect activity within the regulated sector. Under the wider legislative framework, administrative fines can reach €2m per infringement, depending on the offence. Certain illegal gambling activities also carry prison sentences of at least ten years. The penalties cover individuals and businesses involved in illegal gambling operations, while separate sanctions apply to those promoting unlicensed services. Influencers, affiliates and digital advertising networks can also face consequences for facilitating or advertising illegal gambling activity. Gaming Commission Expands Enforcement Resources The government has linked its taxation policy to a broader effort to improve the Hellenic Gaming Commission’s (EEEP) ability to supervise the market and tackle illegal operators. In October, the regulator launched a recruitment initiative seeking 40 personnel through secondments. The positions included seven IT specialists, whose expertise is expected to support inspections and oversight as gambling activity becomes increasingly digital. The recruitment drive forms part of a wider institutional overhaul designed to improve website blocking procedures, investigative capabilities and the application of sanctions against illegal gambling. However, the recruitment announcement did not specify whether the additional personnel would receive funding from the increased player taxes. Protecting the regulated industry’s contribution to public finances remains a significant consideration for the authorities. The Hellenic Gaming Commission estimated that gambling generated €1.17bn in state revenue during 2025. Online gambling accounted for €737m of that amount, while land-based activities contributed €433m. Pierrakakis addressed the issue during an appearance before the regulator on 6 October, warning that illegal gambling was damaging both public finances and businesses operating within the legal framework. He argued that unlicensed activity deprives the state of revenue while creating difficulties for companies that comply with regulatory requirements. The government, he said, must provide the personnel, technology and legal framework needed to ensure effective supervision. Source link The post Greece Stands Firm on Online Gambling Tax Increase appeared first on Top Rank Casinos.