Italy's retail gambling sector is facing a crunch as concessions are set to expire in just ten weeks, and with no reform in sight, operators are urgently seeking assistance to keep their businesses operational. As of December 31, 2026, concessions for betting, bingo, AWPs, and VLTs will lapse. However, the decree intended to reorganize the land-based market and outline terms for new tenders was put on hold in August, missing the government's deadline of August 29. Another extension is anticipated, which would perpetuate the current stagnation that has persisted for years.
In this context, AGSI (Associazione Gestori Scommesse Italia), representing betting shop managers, is advocating for transitional measures to support gaming machines, horse racing, and sports betting until new tenders are issued. AGSI President Pasquale Chiacchio emphasized, "Gaming machines, horse racing, and betting cannot wait three years," in a statement to the Italian publication Jamma.
The disparity between Italy’s online and retail gambling markets is becoming more pronounced. While the online sector is already functioning under a new concession framework—further rules are set to take effect on November 13—retail, which constitutes approximately 75% of a market valued over €21 billion, has yet to see any reform.
Quirino Mancini, co-founder of IMGL, shared insights at the SBC Summit in Lisbon last month, indicating that he does not foresee any governmental action concerning retail reorganization prior to Italy's upcoming general election, regardless of the political party in power. "Gambling is a very sensitive issue," he noted, which has contributed to the reform's stagnation.
Mancini pointed out that the discussion surrounding the reorganization dates back to the 2016 Stability Law, nearly a decade ago, and highlighted that while the technical framework is largely settled, the political will to move forward remains lacking.
The impact is felt daily by operators in the field. Davide Diodato, CEO of Novomatic-owned HBG Online, remarked that while online licenses are valid for nine years, retail concessions are granted on a yearly basis, complicating investment and hiring efforts for shopkeepers.
Chiacchio warned that customers are shifting to online platforms, which offer 24/7 availability alongside more products and promotions, while brick-and-mortar shops are still constrained by distance regulations, limited operating hours, and various permit requirements. He noted that operators' commercial investments are increasingly focusing on online avenues, leaving retail outlets contending with climbing costs and diminishing revenue.
This shift is reflected in tax revenue figures; according to the Ministry of Economy and Finance, total gaming tax revenue fell by 6.3% to €3.64 billion in the first half of 2026.
AGSI seeks to utilize the transition period to enhance the attractiveness of shops, suggesting the introduction of new products through authorized outlets. Chiacchio referenced the 1998-1999 pilot program that successfully introduced sports betting to horse racing agencies as a positive example.
The association also requests a consultation framework involving government representatives, institutions, and industry stakeholders to begin crafting tender rules immediately. It advocates for these regulations to allow small and medium-sized enterprises to compete alongside larger companies and for a more equitable national network featuring trained personnel, citing Campania’s regional law as a guiding model.
Chiacchio cautioned that a shrinking licensed network would likely bolster illegal operators. He insisted that efforts to combat the black market should focus on enforcement against illegal activities rather than imposing further restrictions on licensed businesses.
AGSI’s frustrations are echoed by the operators' association AGIC, which includes members such as Flutter, Lottomatica, Entain, and Bet365. AGIC has expressed that repeated extensions have resulted in a lack of long-term security for the retail market spanning nearly a decade.
