Italy's government is planning to extract nearly €1.9 billion ($2.13 billion) from the gambling industry between 2027 and 2029, according to a draft budgetary plan submitted to the European Commission. The strategy, part of Prime Minister Giorgia Meloni's fiscal policy, involves higher taxes, adjustments to lottery commissions, and increased concession fees.
Budget Projections and Tax Proposals
The draft plan anticipates annual gambling revenue of €718 million ($804.16 million) in both 2027 and 2028, dropping to €478 million ($535.36 million) in 2029. These figures exceed earlier government estimates, which ranged from €400 million to €1 billion. The government is reportedly considering raising approximately €700 million through changes to lottery sales commissions and online gambling, although the precise mechanism is yet to be confirmed.
Other measures under discussion include increasing the PREU levy on gaming machine stakes and introducing steeper fees for concession extensions. However, these proposals have met with political resistance, particularly regarding the PREU levy.
Ongoing Uncertainty for Land-Based Operators
Land-based gambling operators continue to face regulatory uncertainty. Negotiations between the Ministry of Economy and Finance (MEF) and regional authorities over updated gambling rules have stalled. In August, Meloni ordered an end to two years of talks involving Italy's 20 regions and over 100 municipal councils. The Customs and Monopolies Agency (ADM) has since been instructed to extend existing concessions.
Licenses for slot machines, retail betting, and bingo venues are set to expire at the close of 2026, requiring further paid extensions. The current arrangement generates around €232.76 million ($260.69 million) annually for the government.
Legal and Contractual Challenges
Proposed changes to lottery taxation could face legal hurdles. The Lotto concession, awarded to the IGT-led LottoItalia consortium in 2025 for a nine-year term at a fixed 6% commission, may be difficult to alter without reducing operator and retailer earnings. Additionally, the Gratta e Vinci scratch-card concession, due to expire in September 2028, may be subject to a new tender or a paid extension.
Impact on Operators and Affiliates
For online gambling operators, costs have already risen under new regulations introduced in November 2025. Each brand must hold a separate license costing €7 million, plus an annual fee of 3% of net margin. Operators are also required to certify their systems under updated technical standards by February 2027, while gambling advertising remains banned. These changes add to the financial and regulatory burden for both operators and affiliates, potentially impacting market dynamics and profitability.
Key takeaways
- Italy aims to raise nearly €1.9 billion from gambling between 2027 and 2029.
- Proposed measures include higher taxes, new fees, and changes to lottery commissions.
- Land-based and online operators face increased costs and ongoing regulatory uncertainty.
- Legal challenges could arise from attempts to alter existing lottery concession terms.