Gamblers’ winnings not taxable

Two professional poker players from Italy appealed against the Italian tax authority’s decision that their winnings from casinos in other countries in the EU and outside should be declared in a return and were subject to income tax.

Their winnings from local casinos were taxed at source. The sums did not have to be declared and were not subject to income tax.

The matter was referred to the Court of Justice of the EU for a preliminary ruling.

The court said that Italian authority acted a discriminatory fashion by treating winnings from casinos in Italy differently from monies won in other countries.

Articles 52 and 56 of the Treaty of the Functioning of the EU precluded “legislation of a member state which subjects winnings from games of chance obtained in casinos in other member states to income tax and exempts similar income from that tax if...