Italy budget bill raises gaming taxes and extends licences

The proposals would shift new fiscal measures towards the retail gambling sector while leaving online gambling taxes unchanged.

Key takeaways:

• Italy’s 2027 budget bill would increase the PREU levy on AWP machines from 24 per cent to 25 per cent and on VLTs from 8.6 per cent to 9.6 per cent from January 1, 2027.
• Maximum slot-machine stakes would double from €1 to €2, while maximum payouts would increase from €100 to €200.
• Betting, slot, VLT and bingo concessions due to expire in 2026 would be extended until the end of 2029.
• The government estimates the measures could generate around €952m in 2027, with almost €2bn projected between 2027 and 2029.
• The bill introduces a licensing regime for esports and LAN gaming venues while leaving online gambling taxation unchanged.

Italy’s 2027 budget bill includes a package of gambling measures that would raise taxes on gaming machines, increase slot-machine betting limits and extend a range of land-based gambling concessions until 2029. The proposals, which are now heading to parliament for scrutiny, are expected to generate significant additional revenue while introducing new regulations for esports and LAN gaming venues.

Italy.- The government’s proposed 2027 budget bill outlines an increase to taxes on gaming machines while raising slot-machine betting limits and extending land-based gambling concessions until the end of 2029. The certified text proposes an increase in the PREU levy on amusement-with-prize (AWP) machines from 24 to 25 per cent from January 1, 2027. The rate applied to video lottery terminals (VLTs) would rise from 8.6 to 9.6 per cent.

Machines returning at least 70 per cent of stakes in prizes would qualify for a reduced 20 per cent rate. Alongside the tax changes, the maximum stake on slot-machine games would double from €1 to €2, while the maximum payout would increase from €100 to €200.

The bill will now move to the Chamber of Deputies, where parliamentary hearings are expected to begin late this week. Amendments must be submitted by November 17, with final approval of the budget required before December 31.

The bill would extend Italy’s existing betting, slot, VLT and bingo concessions, which were due to expire on December 31 2026. The licences would remain in force until the end of 2029. Under the extension framework, betting shops where gambling is the primary business would pay €14,250 annually for each operating right, while outlets where gambling is a secondary activity would pay €8,550. Slot and VLT network concessionaires would be charged €150 per slot permit and €7,500 per VLT right across the extension period. Bingo operators would face monthly charges ranging from €6,500 to €14,500 depending on card sales.

The Gratta e Vinci scratchcard concession is also set to be extended through to 2029 for €188m, while Lotto and SuperEnalotto products will gain an additional weekly draw.

In a further development, the draft legislation proposes a formal licensing system for esports and LAN gaming venues offering skill-based games without cash prizes. Operators would require approval from Italy’s Customs and Monopolies Agency (ADM), with fees set at €200 per device, €1,000 per venue and €10,000 per online platform. Gambling and betting activities of any type will be prohibited within those facilities.

The package also includes a settlement mechanism aimed at resolving long-running disputes linked to a 2015 levy imposed on slot machines.

The Ministry of Economy and Finance (MEF) has previously said that it expects gambling tax revenue to contribute €700m across 2026 and 2027. The budget proposal estimates that the PREU increase could bring in €334m a year, while concession extensions could generate €281m (plus €188m from the scratchcard concession).

Notably, the bill does not include any tax change for online gambling, which saw the introduction of a new licensing regime last year. It also leaves lottery commission arrangements unchanged. That’s already led to criticism from sections of the land-based gambling industry. Trade association As.Tro has called an emergency meeting of its technical committee to assess the potential impact of the higher machine taxes and concession measures.

FAQs

What gambling tax changes are included in Italy’s 2027 budget bill?

The bill would increase the PREU tax on AWP machines from 24 per cent to 25 per cent and on VLTs from 8.6 per cent to 9.6 per cent from January 1, 2027. Machines returning at least 70 per cent of stakes as prizes would qualify for a reduced 20 per cent rate.

How would slot-machine limits change under the proposals?

The maximum stake on slot-machine games would increase from €1 to €2, while the maximum payout would rise from €100 to €200.

How long would Italy’s gambling concessions be extended?

Betting, slot, VLT and bingo concessions due to expire on December 31, 2026 would remain valid until the end of 2029 under the proposed legislation.

Does the bill introduce new taxes on online gambling?

No. The legislation does not include any new tax measures for online gambling operators and leaves lottery commission arrangements unchanged.

What new rules are proposed for esports and LAN venues?

The bill would create a formal licensing system for venues offering skill-based esports and LAN gaming without cash prizes. Operators would require approval from Italy’s Customs and Monopolies Agency, while gambling and betting activities would be prohibited within those venues.