CGIA "the legal game in Piedmont" at risk 3.800 jobs and 200 million euros in tax revenues

Without the proceeds from the games, each Piedmontese family would have to pay € 176. And the game volume as a whole hasn't decreased

An estimate of the effects produced by the regional gambling law in Piedmont three years after its entry into force. The CGIA Mestre Studio “The legal game in Piedmont” was presented this morning, a webinar organized with the support of As.Tro, the association of legal gaming operators and Sapar, the national association of state game managers. The researchers from CGIA Mestre, Andrea Vavolo and Daniele Nicolai took part in the meeting; Armando Iaccarino (President of the As.Tro Study Center); Manuela Vinai, Sociologist and Author of the book "The players - Ethnography in the slot rooms of the Italian province". Guests are the undersecretary of the Mef, Pier Paolo Baretta; Andrea Tronzano, Councilor for Productive Activities of the Piedmont Region; Claudio Leone, Councilor of the Piedmont Region and President of the III Commission, as well as the first signatory of the Bill n.99.

Despite the distance meter provided for by the regional law, in the three-year period 2016-2019, collection in Piedmont increased by 460 million euros (+ 7%). Furthermore, the data relating to the controls of the GDF on gaming show an increase in irregularities detected and an exponential increase in the tax evaded which went from 477 thousand euros in 2016 to over 4,5 million euros in 2018. The reduction in the number of amusement machines established by national regulations, combined with the tightening of the limitations of distances from sensitive places and game times by regional and local regulations, has led to a contraction of the market and a probable increase in illegal phenomena.

The effects of the Labor Law - Slot machine revenues are in decline, but with heavy employment repercussions and a net cut in tax revenues. The squeeze has significantly reduced Awp's presence in the area. In the period 2016-2019 the slots in Piedmont decreased by over 17 thousand units, a contraction of about 60%. Even more evident is the reduction in general stores, such as bars and tobacconists, in which there are gaming machines: from 6.323 in 2016 to 1.431 in 2019, the downsizing was 77,4%, well more than double the average cut on national scale (30%). Of course, employees are also at risk, whose employment is guaranteed by the income from the appliances. In this regard, a job loss of 1.700 is estimated, a prudential assessment on the data available up to December 2019 which does not yet consider the impact of the distance meter on the sector of dedicated rooms (gaming and betting rooms). The full application of the distance meter (after May 2021) could instead lead to an overall loss of between 2.870 and 3.800 jobs compared to 2016.

The effects of the tax law - The annual loss for the tax authorities is approximately 163 million between Preu and the concession fee, a cut that goes up to 200 million euro if we also calculate the loss of revenue linked to the reduction in turnover for companies in the sector; for the latter, the estimated decrease is instead of 66,2 million euros per year. In Piedmont, the sector of machines - slot machines and video lotteries - guaranteed in 2019 a revenue of over 354 million euros, equal to 55% of the revenue relating to all types of legal games. This is a figure that exceeds that of the revenue from other important taxes collected in the Region, such as the flat rate tax on leases and exceeds 80% of the waste tax and the Municipal Income Tax. If this income disappears and it is wanted to replace it, each Piedmontese family would have to pay € 176. In reality, the contribution of the sector to the public coffers rises to over 400 million if we consider, in addition to the PREU, all the other forms of taxation that affect businesses. Paradoxically, however, the overall collection in Piedmont for the entire sector is by no means decreasing: alongside the reduction in slot bets for 990 million euros, from 2016 to 2019 there is an increase in bets in other types of games for a total amount of 421 million euros. Using an extremely prudent criterion and purifying this growth of that "physiological" part, it can be said that the former Awp players have in any case spent at least 277 million euros on other types of games.

Covid emergency - Due to the periods of suspension of activity due to the Covid emergency, the operators of the gaming sector have suffered very serious contractions in turnover. The gaming sector was one of the most affected by the serious health emergency and the consequent containment measures and has experienced a prolonged closure compared to other economic activities. The three months of total stop from March to June (when the gradual reopening began), and the further closure arranged with the dpcm of 24 October and 3 November give rise to two possible hypotheses: In the optimistic scenario, the reduction in turnover average is close to 40%, while the pessimistic one reaches 45% compared to that of 2019. To this are added further critical factors: a "strong uncertainty for the future, the impossibility of covering fixed costs, given the unprecedented contraction of turnover, the obligation to invest in one's own company, in view of the adaptation of the devices to variations in Preu and payout, and «the difficulty in obtaining financing from credit institutions.

CGIA "the legal game in Piedmont" at risk 3.800 jobs and 200 million euros in tax revenues

| Economics |