Playtech PLC (LON:PTEC) expects a new Italian tax on gambling to reduce its 2019 adjusted underlying earnings (EBITDA) by approximately €20mln-€25mln before any mitigating actions.
In a brief statement, the FTSE 250-listed firm noted that on Sunday 23 December 2018 the Italian Senate passed the government's 2019 budget which includes legislation to increase taxation on various types of gambling activities.
READ: Playtech cheers the City with €846mln acquisition of Italian rival Snaitech
The gambling technology company said the legislation is expected to receive final approvals, including from the Chamber of Deputies, before the end of 2018 and is scheduled to take effect from 1 January 2019.
The firm pointed out that the expected impact from this legislation is in addition to the previously announced impact from the 2018 Dignity Decree.
Back in April, Playtech unveiled the €846mln acquisition of
Snaitech, one of the leading and best-known online gaming brands in Italy, which is Europe's largest gaming market.
In 2017, Snaitech generated underlying earnings (EBITDA) of €136mln on revenue of €890mln.
Playtech said at the time that it expects to extract material annual cost synergies of €10mln as well as revenue synergies.