Italy Proposes Higher Slot and VLT Taxes in 2027 Budget
Italy.- 5 November 2026 | www.zonadeazar.com The Italian Government has introduced its 2027 budget bill, proposing higher taxes on slot machines and video lottery terminals (VLTs), changes to betting limits and extensions to certain gambling concessions.
Approved by the Council of Ministers on 28 October 2026, the proposal aims to increase public revenue while maintaining continuity across Italy’s regulated land-based gambling market.
According to the bill’s technical estimates, the gambling-related measures could generate approximately €952 million in additional revenue during 2027.
Higher Taxes on Gaming Machines
One of the principal proposals concerns the Prelievo Erariale Unico (PREU), a levy applied to gaming machine turnover.
The proposed changes include:
- AWP machines: an increase from 24% to 25%.
- VLT terminals: an increase from 8.6% to 9.6%.
- AWP machines with a minimum 70% payout: a reduced 20% tax rate.
The new rates would take effect on 1 January 2027, subject to parliamentary approval.
The proposals primarily target land-based gaming and do not introduce a new specific levy on online gambling.
Maximum Stakes and Prizes Would Double
The budget bill also proposes changes to the operating conditions of AWP machines.
The principal adjustments are:
- Maximum stake per game: from €1 to €2.
- Maximum prize per game: from €100 to €200.
The Government aims to update the economic parameters of the sector alongside the proposed tax changes.
These provisions remain subject to parliamentary debate.
Gambling Concessions Extended Until 2029
Another important measure involves extending certain gambling concessions scheduled to expire on 31 December 2026.
The bill proposes extending their validity until 31 December 2029, covering:
- Sports betting and other authorised events.
- AWP slot machines.
- VLT terminals.
- Bingo operations.
The extensions would allow existing services to continue while Italy progresses with reforms to its land-based gambling licensing framework.
However, operators would be required to pay additional annual fees to maintain their concessions.
Additional Costs for Operators
The extension of gambling concessions would involve new financial obligations.
For certain betting authorisations, the proposal establishes an annual fee of €14,250 per betting right.
Operators would need to assess these costs alongside the proposed PREU increases.
The changes could be particularly significant for businesses operating large networks of gaming machines and physical venues.
Italy Targets €2.6 Billion by 2029
The budget bill’s technical report forecasts a substantial fiscal contribution from the proposed gambling measures.
The estimates include:
- 2027: approximately €952 million in additional revenue.
- 2027–2029: around €2.6 billion in cumulative revenue.
These figures cover several gambling-related measures rather than solely the increased taxes on AWP and VLT machines.
Actual revenue will depend on final parliamentary approval and market performance.
Industry Associations Criticise the Proposals
Industry organisations As.Tro, ACADI and SAPAR, representing different areas of Italy’s land-based gambling market, have expressed concerns about the proposed changes.
The associations criticised both the PREU increases and the additional costs associated with extending existing concessions.
They warned that higher taxation could place further pressure on operators’ profitability and competitive conditions.
Industry representatives are calling for consideration of the financial sustainability of licensed businesses.
Parliamentary Approval Still Required
The proposed measures are not yet law.
The budget bill must complete its parliamentary process before 31 December 2026.
The legislative timetable includes a deadline of 17 November for amendments in the Chamber of Deputies.
The proposed tax rates and concession conditions could therefore change during parliamentary consideration.
Industry Impact and Next Steps
The budget proposals represent an important potential change for Italy’s land-based gambling industry.
The Government aims to increase tax revenue and preserve licensing continuity, while operators are warning about the impact of additional fiscal pressure.
With proposed tax rates of 25% for AWP machines and 9.6% for VLTs, maximum stakes of €2 and concessions extended until 2029, Italy is preparing significant fiscal and regulatory changes to its land-based gambling market.
Final approval of the budget will determine the conditions operators must meet from 2027.
Edited by: @fonta
