The European Union Court of Justice (CJEU) has ruled that the Italian government cannot pursue players for income tax on winnings from playing in poker tournaments in other EU countries.
The Italian government exempts players who win money in nationally licensed land-based casinos from income tax, but it levies tax on winnings from playing in casinos elsewhere.
The Provincial Tax Commission of Rome had claimed that Team PokerStars Pro Pier Paolo Fabretti owed income taxes on the €52,000 he won for his victory in the €10.5k High Roller Event at the IPT Nova Gorica in Slovenia in 2009.
He also received demands for winnings from other tournaments, as did fellow tournament player Christiano Blanco.
The CJEU ruled that the Italian exemption from income tax which applied only to casinos licensed in Italy imposed a reduction in the freedom of trade—because Italian players would be deterred from moving to another EU country where they would lose the tax exemption.
The court determined that there was no legitimate justification for the differential tax regime based on the exemptions allowed in the EU treaties, either for consumer protection or to deter crime.
