State-run casinos in Greece have been told by the EU Commission that they can no longer receive more favourable tax conditions than their privately-owned counterparts.
In 2009, the Commission received a complaint alleging that the taxation of admissions in casinos in Greece discriminates against private casinos and actually amounts to state aid for casinos that are owned by the state.
Under Greek law, admission tickets are taxed at a uniform 80 per cent but the price of tickets differs between the two types of property, with a six euro fee charged for admission to state-owned casinos and a 15 euro ticket price for private ones. This means that private casinos pay almost three times as much tax per person on admissions as state-run venues.
An in-depth investigation by the Commission found that the disparity in fiscal treatment provides an advantage to state-owned casinos, distorting competition and trade between member states as operators are often international hotel groups.
Worryingly for the Greek government, which is struggling to contend with its budget deficit, the Commission has ordered it to recover what it described as "unlawful incompatible aid" dating back to 1999 from the state-owned casinos.
Having been told to cancel the outstanding fiscal advantage given to state-run gaming properties, the government is now considering changing the pricing regime to redress the balance.
