Italy's initiative to revamp its land-based gambling industry has encountered significant obstacles, as the national government struggles to finalize the terms of a reform that has been in negotiation for two years.
The impasse arose between the Ministry of Economy and Finance (MEF) and the Conference of Regions and Autonomous Provinces. Reports indicate that the final draft of the Decreto di Riordino del Gioco Fisico was rejected by Prime Minister Giorgia Meloni's office last week and sent back to the MEF for further evaluation.
Alfredo Mantovano, Meloni's Undersecretary to the Presidency of the Council, informed AgiProNews that any decree ultimately approved would not change the minimum distance regulations currently enforced by regional authorities. The existing rules that prevent gambling establishments from operating near schools and other sensitive areas will remain intact.
The MEF aimed to unify Italy's fragmented regional laws into a cohesive set of national standards addressing minimum distances, operating hours, venue certifications, and concession requirements. However, regional governments have resisted relinquishing this authority, citing the public health implications of gambling.
After the reintroduction of Italy's online gambling framework in November 2025, Meloni intended to finalize the restructuring of the retail sector before the government's fiscal delegation powers expire on August 29. However, this timeline now seems improbable. Even if the Council of Ministers endorses the decree, it would still need approval from the State-Regions Conference and parliamentary committees.
The stalled negotiations also cast doubt on the rollout of new retail gambling concessions. Prior to last week's breakdown, discussions focused on finalizing compensation terms with the Conference, which represents Italy's 20 autonomous provinces and 110 municipalities.
Without resolution on the regional distance restrictions, launching new tenders for betting shops, slot machines, and bingo halls would prove challenging. This situation has previously led operators to contest concession processes due to difficulties in identifying compliant locations.
The delay has financial implications for the government, as new concession auctions were anticipated to generate between €1.8 billion and €2 billion ($2.07 billion-$2.30 billion) in upfront licensing revenue.
The broader reform initiative also aimed to establish a national definition of sensitive locations, standardized operating hours, mandatory venue certifications, a national operator registry, updated advertising regulations, and technical standards for next-generation gaming machines.
In the meantime, the government will extend existing retail gambling concessions until December 31, 2026.
Morgan Stanley has indicated that, without renewed political discussions, Italy may postpone the retail overhaul by another one to two years as state and regional authorities continue to seek common ground.
AGIC, which includes members such as Flutter Entertainment, Lottomatica, Entain, bet365, and Brightstar, has warned that repeated extensions of concessions have left the regulated retail market without long-term stability for nearly a decade, a situation that has deterred investment and hindered modernization.
As Parliament is set to reconvene in September, Meloni is expected to prioritize passing the 2027 Budget, leaving little opportunity to address one of her coalition's more contentious regulatory issues ahead of the elections in 2027.
However, leaving the issue unresolved may exacerbate tensions with the judiciary, as federal and regional courts are already dealing with a backlog of cases related to concession extensions and conflicts between state licensing goals and municipal planning regulations.