Italy turns to gambling taxes to help fund spending plans
The government’s revenue expectations come as operators navigate licensing reforms and continued uncertainty over retail gambling rules.
Key takeaways:
- Italy’s Budget Law forecasts €700m in gambling tax revenue across 2026 and 2027.
- Gambling, finance and energy taxes will help fund €26bn of measures in 2027 and €27bn in 2028.
- No decision has yet been made on a new Gratta e Vinci concession tender.
- Land-based gambling reform remains unresolved, with current concessions extended until the end of 2028.
The government of Italy expects the gambling sector to generate €700m in tax revenues over the next two years under the newly approved Budget Law, reinforcing the industry’s role in supporting public finances. The plans arrive as the country’s gambling market undergoes significant regulatory reform, with both online licensing changes and unresolved land-based gambling negotiations reshaping the sector. For operators, the budget highlights the growing importance of gambling revenues to government fiscal planning.
Italy.- Prime Minister Giorgia Meloni has approved Italy’s latest Budget Law, setting out the fiscal priorities of her Brothers of Italy government ahead of the 2027 general election and confirming that the gambling sector will play a role in funding future spending commitments. The draft budget received approval from the Council of Ministers after being presented earlier this month to both the cabinet and the European Commission by Economy and Finance Minister Giancarlo Giorgetti.
The Ministry of Economy and Finance (MEF) expects the gambling industry to contribute €700m in tax revenues across 2026 and 2027. The figure sits between earlier projections, which ranged from €400m-€500m to as much as €1bn. Revenue generated from gambling, finance and energy taxes is expected to help support government spending measures and tax reductions worth €26bn in 2027 and €27bn in 2028.
The approved Budget Law does not currently include a new tender for Gratta e Vinci scratch cards, with the proposal still under consideration by ministers. The government reportedly continues to evaluate a paid extension of the existing concession, which is scheduled to expire in September 2028.
The budget arrives as the online gambling market is nearing the end of its first year under a new licensing framework introduced in November 2025. One of the most notable reforms was the introduction of a €7m annual licence fee and a requirement for operators to hold separate licences for each individual brand rather than covering multiple brands under a single authorisation.
Meanwhile, uncertainty continues in the retail gambling sector. Negotiations between the MEF and the Conference of Regional Councils over a new regulatory framework for land-based gambling venues remain unresolved. After two years of discussions, Meloni instructed the MEF in August to conclude negotiations with regional authorities and finalise a federal framework governing gambling venues across Italy’s 20 autonomous regions and 110 municipal councils.
The decision resulted in the ADM being instructed to extend existing land-based gambling concessions, which are now set to run until the end of 2028.
Various European countries have been focusing on the gambling sector in a bid to raise tax revenue. Also this week, chancellor John Healey announced a five-point increase to Machine Games Duty in the UK in a bid to help fund reductions in business rates for hospitality and leisure businesses as part of the government’s efforts to support struggling high streets. However, the gambling sector has warned that higher tax rates don’t necessarily translate to a higher take if the impact harms business. In the Netherlands, the rise in the rate of gambling tax led to a decline in tax takings in 2025.
FAQs
How much gambling tax revenue does Italy expect to collect?
Italy’s Ministry of Economy and Finance forecasts €700m in gambling tax revenues across 2026 and 2027 under the approved Budget Law.
Will there be a new Gratta e Vinci tender?
Not yet. The Budget Law does not include a new tender, and the government is still considering its options, including a possible extension of the existing concession.
What changed under Italy’s new online gambling licensing system?
Operators must now hold separate licences for each individual brand and pay an annual licence fee of €7m under rules introduced in November 2025.
What is happening with Italy’s land-based gambling reforms?
Negotiations between national and regional authorities remain unresolved. Existing land-based gambling concessions have been extended until the end of 2028 while a new framework is developed.
