Italy's gambling industry may shoulder a €700 million share of the nation's 2027 budget, with potential sources identified as the aggio—commission on lottery sales—and online gaming, as noted by financial publication Milano Finanza. This information appears in a larger context of budget reports, indicating an expected funding mechanism that had previously been uncertain.
If these plans are finalized, they could relieve brick-and-mortar establishments from this financial obligation. However, this detail is part of preliminary Cabinet discussions and is yet to be formally approved.
The Cabinet is slated to convene today, October 28, at approximately 3 PM, according to Il Sole 24 Ore, although the meeting has faced delays. The proposed budget is a substantial €23.5 billion, with about €5 billion derived from banks and insurance companies, as per Sky TG24. Additionally, there are indications that the previously anticipated income tax reduction for those earning above €50,000 has been removed from the budgetary plan.
The reported €700 million figure is an estimate. The draft budget presented to Brussels states gambling’s contribution could reach €718 million in 2027 and 2028, with a lower figure of €478 million in 2029, totaling nearly €1.9 billion over three years.
These numbers differ from other recent analyses; for instance, Agimeg has put forth scenarios based on a possible one-point increase in PREU, Italy's levy on gaming machine stakes, along with significant costs related to extending concessions. Meanwhile, Jamma reported that a smaller increase in PREU is facing pushback from the ruling coalition.
The reliance on lottery revenue invites questions regarding existing contracts. The Lotto concession was recently re-awarded in 2025 to the LottoItalia consortium, headed by IGT, for a nine-year term at a fixed 6% aggio. Adjusting this percentage during the concession period may present legal challenges, and reducing the aggio could diminish the revenues kept by operators and their distribution networks.
Online gaming operators would see additional costs layered on top of their existing expenses. Licenses under the new regime, launched in November 2025, cost €7 million each, along with an annual concession fee of 3% based on net margins. Operators are required to ensure their systems comply with new technical standards by February 15, 2027. Italy's Dignity Decree, which prohibits gambling advertising, remains in effect.
Land-based gaming operators are also facing challenges. Licenses for slots, retail betting, and bingo are set to expire on December 31, 2026, necessitating another paid extension. The currently active extension generates approximately €232.76 million annually.
Concerns among retail groups have grown over the possibility of a heavier financial burden. Dario Peirone, director general of the Istituto Milton Friedman, cautioned last week that further tax increases could lead to a significant downturn for physical gambling venues.
Both Italy and the UK are reviewing gambling tax policies today. Chancellor John Healey is anticipated to elevate duty on machine games during his inaugural autumn budget. Once Italy's Cabinet ratifies the budget, it will move to parliament, at which point operators will understand the allocation of financial responsibilities once the finalized text is released.
