A significant new motion has been presented to the Italian Senate Budget Committee, aiming to fundamentally restructure the taxation and governance of the country’s slot machine sector.
Introduced by Senator Claudio Lotito of Forza Italia during the ongoing 2026 Budget Law debates, the proposal seeks to launch a pilot taxation scheme for “Amusement with Prizes” (AWP) machines. This initiative is designed to be considered for the 2026 Budget, aligning with the Meloni government’s broader reorganization of the gambling industry.
The core of Lotito’s proposal is a shift in the fiscal model: taxing player expenditure rather than gross revenue. The stated goal is to rebalance the sector’s economic structure, making legal gaming more competitive against illegal operators.
The motion comes at a critical time, as budget projections indicate a sharp decline in slot wagers—from €24 billion in 2018 to an estimated €15.4 billion in 2026—coupled with a tax rate hike that has cost the state approximately €900 million in lost yield.
To support this shift, the plan includes enhanced player value and protection measures. The proposal mandates a minimum payout ratio of 70% and raises the maximum prize limit from €100 to €200. Furthermore, it introduces stricter responsible gambling safeguards, such as technical limits on session durations and mandatory on-screen warnings to prevent underage access.
This legislative push coincides with the Customs and Monopolies Agency’s (ADM) digital transformation. Starting January 2026, all slot and Video Lottery Terminal (VLT) authorizations will migrate to a fully digital system using QR-code labels for traceability.
The ADM has confirmed the successful completion of this digitization trial, warning that penalties will apply to non-compliant machines. These reforms are part of a larger strategy to establish a Unified Concession Model, standardizing rules across Italy and preparing for new public tenders for betting shops and gaming halls in late 2026.
