Italy Targets €1.9 Billion in Gambling Revenue Between 2027 and 2029
Italy.- 3 November 2026 | www.zonadeazar.com The Italian Government, led by Prime Minister Giorgia Meloni, is preparing additional taxation measures for the gambling industry, with the aim of generating approximately €1.9 billion (US$2.13 billion) between 2027 and 2029.
The budget proposal includes potential tax increases, changes to lottery sales commissions and higher costs for extending gambling concessions.
The measures form part of the Government’s fiscal strategy for financing the 2027 national budget and subsequent financial years.
Government Sets Gambling Revenue Targets
The draft budgetary plan submitted to the European Commission outlines additional revenue expected from the gambling industry over the next three years.
Initial projections include:
- 2027: €718 million.
- 2028: €718 million.
- 2029: €478 million.
- Total forecast: approximately €1.914 billion.
These figures represent revenue targets rather than funds already collected.
The Government must still finalise and secure approval for the measures required to achieve these projections.
Taxation and Concessions Among the Options
Italian authorities are considering several mechanisms for increasing the industry’s fiscal contribution.
The proposals under discussion include:
- Higher PREU taxation on certain gaming machines.
- Increased fees for extending gambling concessions.
- Changes to lottery sales commissions.
- Additional tax provisions affecting certain online gambling activities.
One possibility involves generating approximately €700 million through adjustments to lottery commissions and digital gambling.
However, the Government had not officially confirmed how the additional tax burden would be distributed when the initial estimates were published.
Gaming Machines Could Face Higher Taxes
One of the principal measures under consideration concerns the Prelievo Erariale Unico (PREU), a levy imposed on certain gaming machines in Italy.
Potential increases would affect AWP slot machines and video lottery terminals (VLTs).
These products represent an important segment of the country’s land-based gambling industry.
Industry representatives have warned that further taxation could affect the profitability of operators and businesses hosting gaming machines.
Determining the new rates will be an important part of the budget discussions.
Land-Based Concessions Expire in December
The land-based industry also faces uncertainty concerning the expiry of existing concessions.
Authorisations for gaming machines, retail betting and bingo are scheduled to expire on 31 December 2026.
With broader regulatory reform still unresolved, the Customs and Monopolies Agency (ADM) has been instructed to proceed with further extensions.
The existing concession extension arrangements generate approximately €232.76 million annually.
The budget proposal includes the possibility of increasing the amounts operators must pay to extend their authorisations.
Regulatory Negotiations Remain Unresolved
The restructuring of land-based gambling remains incomplete following the Government’s decision to suspend negotiations that had continued for approximately two years.
Discussions involved the Ministry of Economy and Finance and representatives of regional and municipal authorities.
The objective was to establish common principles governing the geographical distribution of gambling activities.
However, disagreements prevented the parties from reaching an agreement.
Consequently, existing concessions require further extensions while the authorities consider longer-term regulatory arrangements.
Lottery Commissions Could Be Revised
The Government is also examining possible changes to lottery sales commissions, known in Italy as aggio.
However, modifying existing arrangements could create contractual complications.
In 2025, the Lotto concession was awarded for nine years to the IGT-led LottoItalia consortium, with a fixed commission of 6%.
Changing that percentage could affect revenues received by operators and retailers.
Meanwhile, the Gratta e Vinci scratch-card lottery concession expires in September 2028, prompting consideration of a new tender or paid extension.
Online Operators Already Face Higher Costs
Italian online gambling operators are adapting to regulatory changes introduced in November 2025.
The framework establishes:
- €7 million for each individual brand licence.
- An annual concession fee equivalent to 3% of net margin.
- Technical certification requirements by 15 February 2027.
These obligations apply to authorised online casino and betting operators.
International groups such as Flutter Entertainment, which operates brands including Sisal, Snai, PokerStars and Tombola, must maintain separate licences for their businesses.
Italy’s general restrictions on gambling advertising under the Dignity Decree also remain in force.
Industry Warns About Tax Pressure
The proposed measures have raised concerns among representatives of the land-based gambling industry.
Dario Peirone, Director General of the Istituto Milton Friedman, warned that another tax increase could undermine the financial sustainability of some operators.
He argued that businesses already face substantial taxation and administrative obligations.
Peirone was particularly critical of the possibility of introducing additional charges for concession extensions.
His comments form part of the wider debate about operators’ ability to absorb further fiscal costs without affecting their activities.
Gambling Revenue Supports National Budget
The proposed measures form part of a broader fiscal package.
The Italian Government plans budgetary initiatives worth approximately €26 billion in 2027 and €27 billion in 2028, supporting tax measures and public expenditure.
The funding strategy includes additional contributions from sectors such as:
- Gambling and betting.
- Banking and financial services.
- Energy companies.
The objective is to raise resources for the Government’s economic priorities over the coming years.
Industry Impact and Next Steps
Italy’s gambling industry faces a period of taxation and regulatory changes that could affect operating costs during the coming years.
Outstanding issues include the final tax rates, the conditions for extending concessions and the treatment of lottery sales commissions.
Parliament must examine the budget provisions before implementation.
With initial projections of approximately €1.9 billion in gambling-related revenue between 2027 and 2029, Italy is seeking to increase the sector’s fiscal contribution while land-based and online operators assess the implications of the proposed measures.
The final figures and mechanisms will depend on the legislation ultimately approved.
Edited by: @fonta
