Blanco and Fabretti (tax on foreign casino winnings) (CJEU): Status, Rulings and What It Means for Players

What this case is about

Blanco and Fabretti is the joined case C-344/13 and C-367/13 before the Court of Justice of the European Union (Third Chamber), decided on 22 October 2014.

Two Italian residents, Cristiano Blanco and Pier Paolo Fabretti, were taxed on winnings from casinos in other Member States. They sued the Agenzia delle Entrate, Direzione Provinciale I di Roma, Ufficio Controlli.

The question was whether Italian law could charge income tax on winnings from casinos abroad while exempting winnings from Italian casinos, which are taxed at source. The claim rested on Articles 52 and 56 of the Treaty on the Functioning of the European Union.

The case is one of the leading rulings in gambling tax litigation.

Who is covered

The ruling concerns residents of Italy who win in casinos in other EU Member States. It was a reference from the Commissione tributaria provinciale di Roma, decision of 28 May 2013, received by the Court on 24 June and 1 July 2013. Advocate General P. Cruz Villalón gave the opinion.

No class of claimants exists. The judgment settles the law for the national courts that referred the two questions, and it is cited in Italian player tax disputes. For other EU rulings, see Gambling Lawsuits in European Union (CJEU).

Is there a payout?

No payout exists in this case. The record shows no fund, no damages award and no claim process. The case is a ruling on whether a tax rule is allowed under EU law, and the two players' own refund outcomes are not in the record.

What the court decided

The Court held that Articles 52 and 56 TFEU preclude legislation that subjects winnings from games of chance obtained in casinos in other Member States to income tax while exempting similar winnings obtained in national casinos.

The judgment was given on 22 October 2014 and the case is closed at the level of the Court of Justice.

The practical result, per the record, is that Italy had to stop taxing EU casino winnings of its residents. The operative part is in the judgment published under CELEX 62013CJ0344, and the Court's docket sits at curia.europa.eu under C-344/13.

Why it matters

The ruling rests on a simple comparison: winnings from Italian casinos were exempt, while winnings from casinos in other Member States were taxed. It is cited whenever an EU country taxes players differently depending on where the casino sits.

Tax on settlement money is a separate question. Readers can check it in Are Gambling Settlement Payments Taxable?, which gathers IRS, ATO, HMRC and BFH references.

Questions people ask

What did the CJEU decide in Blanco and Fabretti?

On 22 October 2014 the Third Chamber held that Articles 52 and 56 TFEU preclude income tax on winnings from casinos in other Member States when winnings from Italian casinos are exempt.

Does the ruling give players money back?

No. The judgment decides the legal question and creates no fund or claim process. Whether the two players recovered tax is not in the record.

Who referred the case to the CJEU?

The Commissione tributaria provinciale di Roma referred it by decision of 28 May 2013. The Court received the references on 24 June and 1 July 2013.