Italy is poised to implement substantial modifications to its land-based gaming sector under legislative proposals embedded within the country’s 2027 Budget Bill.
The certified text, which is advancing toward the Italian Parliament for formal debate, introduces higher tax burdens on gaming machines, doubles allowable stake and prize thresholds for slot devices, and prolongs existing land-based gambling concessions through the end of 2029. Notably, the draft legislation refrains from imposing new taxes on online gambling while preserving the existing lottery commission structure.
Under the proposed measures, the single tax levy (PREU) applicable to amusement with prize (AWP) machines will increase from 24 percent to 25 percent effective January 1, 2027. Simultaneously, the levy on video lottery terminals (VLTs) will climb from 8.6 percent to 9.6 percent. To offset operational pressures, the legislation permits higher-value gameplay by raising the maximum stake from €1 to €2 and elevating the maximum prize from €100 to €200.
Furthermore, machines returning a minimum of 70 percent of stakes as winnings will qualify for a reduced 20 percent levy tier. The bill also introduces a specialized licensing framework for esports and LAN gaming venues hosting skill-based competitions without cash prizes.
Substantial revenue projections for government coffers
The Italian government anticipates that the comprehensive fiscal package will serve as a major revenue driver over the coming years. According to sector estimates, the gambling provisions within the Budget Bill are projected to yield approximately €952 million during 2027 alone, surpassing earlier figures indicated by Prime Minister Giorgia Meloni.
The largest individual contribution is expected to derive from the elevated PREU levy on gaming machines, forecast to bring in €334 million. Extending land-based gambling concessions is projected to add another €281 million, while scratch cards are anticipated to generate €188 million. Additional state collections could reach €71.62 million should eligible parties settle the long-running 2015 levy dispute.
Looking further ahead, technical reports attached to the legislation estimate that the combination of machine tax hikes and concession prolongations will generate close to €2 billion between 2027 and 2029, resting partly on the assumption that doubled stake limits will stimulate increased player spending.
Concession costs spark industry concern
The proposed framework introduces structured fees for concession holders, requiring betting shops to pay annual fees of €14,250 for primary gaming operations or €8,550 where gaming is secondary, alongside permit-based charges for slot and VLT concessionaires and card-sale fees for bingo halls.
These added financial obligations have triggered sharp criticism from land-based operator associations. The Association of Concessionaires of Entertainment Equipment (ACADI) cautioned that combining higher equipment taxes with new concession costs places severe strain on businesses navigating a contracting market. ACADI President Geronimo Cardia emphasized:
“We are not asking for discounts, we are asking not to shut down a supply chain that guarantees the state billions in revenue every year.”
Parliamentary hearings at the Chamber of Deputies are scheduled for Thursday, with member amendments due by November 17 ahead of a final legislative approval deadline on December 31.
