After the economic crisis in Greece left the country on the verge of bankruptcy, the government started to seek for ways to heal the wound and stabilize its economy. Although many people think that the gambling industry has a negative effect on the society, it is actually a key contributor to the economic growth of a country. It is not a secret that the top factor, which determines the profitability and lucrativeness of a gambling market is the taxation system. As a matter of fact, gambling operators tend to avoid countries with excessive tax rates. Greece appears to be aware of this and announced that it is to implement new taxation system that is to reduce the taxes on casino slot machines and gaming tables.
Greece became the center of Europe’s attention due to the country’s economic crisis which started in 2009. It was triggered by the Great Recession’s aftermaths. To avert calamity, European Union had no other choice except funding bailout loans, which would help the country to climb out of the hole. The bailouts, though, came with conditions. The country was required to impose harsh austerity terms, dramatic tax increases, and budget cuts. The dangerous amount, which the Greek government owes to the EU left the country’s economy on life support. Apart from the small- and medium-sized local business, the bad economic conditions in Greece damaged also its gambling industry. But it seems that the Greek government has already found the right ointment to encourage its gambling industry.
Greece’s Ongoing Bailout Program
At present, the country’s lawmakers are working on a legislative piece, which aims at introducing a gambling tax reform. According to the proposals, the tax system is to witness a considerable decrease, cutting the gambling tax on gross turnover from 30-37% to at least 25%. In that way, the officials place hopes that the lowered tax rates are to attract foreign investors and breathe new life into the country’s gambling industry. The reform would allow the country to almost double the revenues coming from gambling. According to the new taxation system, the country is to collect tax revenues from licensing and casino operations.
As part of the plan, the government gave an approving nod to the relocation of the Regency Mont Parnes Casino from its current address at Parnitha to a more strategic position near Athens. It was disclosed that the project is to cost $150 million. The officials also gave a go-ahead to a new casino project, which will be established at the old international airport Elliniko. This is expected to give a strong push forward to the broken-down gambling industry, which will also improve the country’s tourism sector. It seems that even this cloud has a silver lining.