Italy Proposes New Taxes and Licensing Rules for Esports Venues
Italy.- 10 November 2026 | www.zonadeazar.com The Italian Government has proposed bringing esports venues and gaming centres under the supervision of the Customs and Monopolies Agency (ADM), the authority responsible for regulating gambling and betting activities.
The initiative forms part of the country’s 2027 Budget Bill and introduces licensing, taxation and administrative requirements for venues commonly known as LAN gaming halls.
The proposal has raised concerns across Italy’s video game industry, which warns about the financial consequences of applying gambling-style regulation to activities that do not offer cash prizes.
Esports Venues Would Come Under ADM Supervision
Article 25 of the Budget Bill establishes a regulatory framework for establishments where customers pay to use computers, consoles and gaming simulators.
These venues operate as entertainment centres and frequently host video game competitions.
Under the proposal, operators would be required to:
- Obtain authorisation from the ADM.
- Maintain at least 20 gaming stations.
- Comply with new taxation requirements.
- Retain activity records for at least five years.
- Prohibit all forms of betting on their premises.
The rules would apply to skill-based gaming activities even when no monetary prizes are awarded.
Annual Tax of €1,200 per Gaming Station
One of the most controversial provisions concerns the proposed tax structure.
The Government intends to establish an assumed annual taxable income of €15,000 per gaming station, regardless of the venue’s actual revenue.
An 8% entertainment tax would then be applied.
This would result in:
- Standard PCs and gaming stations: €1,200 annually per device.
- Large gaming simulators: €2,000 annually per device, based on an assumed taxable income of €25,000.
The requirement could particularly affect smaller venues whose actual turnover may be substantially below the figures used to calculate the tax.
Additional Licensing Costs
Beyond annual taxation, the proposal introduces administrative fees for operators.
These include:
- €200 per authorised gaming device.
- €1,000 per venue.
- €10,000 per online platform, where applicable.
These charges would add to existing operating, maintenance and technology costs.
Industry representatives argue that the additional financial burden could make expansion more difficult for a sector that remains at an early stage of development in Italy.
Government Forecasts €55.2 Million in Tax Revenue
The technical report accompanying the Budget Bill estimates that Italy could have approximately 2,300 LAN gaming halls by 2028.
Based on this assumption, the Government projects:
- €55.2 million in annual tax revenue.
- More than €10 million in additional administrative fees.
However, industry associations have challenged these estimates, arguing that they do not accurately reflect the current size of the market.
Industry Estimates Just 70 Existing Centres
IIDEA, the Italian video game industry association, estimates that approximately 70 LAN gaming centres currently operate in Italy.
Only around 20 of these would meet the proposed minimum requirement of 20 gaming stations.
The association also estimates that Italy’s entire esports sector will generate between €32 million and €35 million in 2026.
This figure is lower than the €55.2 million the Government expects to collect annually through the proposed tax.
The discrepancy is one of the industry’s principal arguments against the legislation.
IIDEA Calls for Article 25 to Be Withdrawn
The association has opposed the proposal to place esports centres under ADM supervision.
According to IIDEA, the proposed obligations are disproportionate for an industry that is still developing.
It also questioned the Government’s technical report, which acknowledges the absence of reliable data on the number of operating LAN gaming halls.
Consequently, IIDEA has called for Article 25 to be removed from the 2027 Budget Bill and for industry representatives to be consulted before introducing new requirements.
Parliamentary Amendments Due by 17 November
The proposal is currently under consideration by Italy’s Chamber of Deputies.
Lawmakers have until 17 November 2026 to submit amendments.
The measures have therefore not yet become law and remain subject to modification during the parliamentary process.
Article 25 forms part of a wider budget package that also includes higher taxes on slot machines and video lottery terminals, alongside extensions of gambling concessions until 2029.
Industry Impact and Next Steps
The proposal has opened a debate about the regulatory boundaries between gambling and competitive video gaming.
While the Government seeks to introduce authorisation and taxation mechanisms, the industry warns that the costs could threaten the viability of existing businesses.
With a proposed annual tax of €1,200 per gaming station and an official forecast of 2,300 venues by 2028, Italy faces questions about the proportionality of new regulatory obligations for the esports sector.
The parliamentary process will determine whether Article 25 remains in the Budget Bill, is amended or is withdrawn.
Edited by: Cristobal R.
