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Coronavirus emergency led the Government to postpone deadlines for some gambling taxes and license fees in Italy and might impact contracts.
Due to the growth of the coronavirus emergency that led to the suspension of the operation of gambling and bingo halls in Italy, the Government is trying to help companies, including gambling operators with a series of measures that include
- The postponement of the term for the payment of gambling taxes and license fees for AWPs and VLTs to the 29th of May 2020, with the possibility to pay it in installments subsequently
- The cancellation of the license fee for bingo halls for March 2020 due to the suspension of their operation is terminated; and
- The extension of 6 months of the tender for new AWP and VLT licenses for bingo hall and betting shop licenses and for the establishment of the register of gambling operators and suppliers.
Hopefully, the emergency will not last much. But another issue is the impact on contracts with gambling suppliers of the current situation. Indeed, contracts might provide for fixed costs that would apply regardless of the suspension of the operation of gambling and bingo halls.
The question is then whether the Covid-19 emergency might be considered as an event of force majeure that either makes impossible the performance of the agreements or causes an alteration in the value of the performance of the parties which might lead to either the suspension or the termination of the agreements as well as to a possible reduction of the applicable consideration.
The review of agreements needs to be run on a case by case basis. Still, the suspension of the operation of gambling halls is an event that has a material impact also on the mechanic of agreements with suppliers, gambling hall managers, and any entity involved in the gambling business.
At the same time, such an emergency might be beneficial for the online gambling sector, and you can read on the topic, “Coronavirus rules on gambling in Italy might help remote offering“.
