Italy's retail gambling sector is facing an impending crisis as its concessions near expiration, yet essential reforms remain stalled. With only ten weeks until the current concessions for betting, bingo, AWP (Amusement With Prizes), and VLT (Video Lottery Terminal) licenses come to an end on December 31, 2026, operators are urgently seeking assistance to maintain their shops amidst this uncertainty.
The planned decree to reorganize the land-based gaming market, which aimed to outline the framework for new tenders, was put on hold in August after missing the government's deadline of August 29. Without new tenders, the industry finds itself trapped in a prolonged state of limbo that has lasted for years.
AGSI (Associazione Gestori Scommesse Italia), an organization representing betting shop managers, is advocating for interim measures to support gaming machines, horse racing, and sports betting until new tenders can be issued. "Gaming machines, horse racing and betting cannot wait three years," stated AGSI president Pasquale Chiacchio in an interview with the Italian publication Jamma.
The disparity between Italy’s online and retail gambling markets is growing. While the online sector is operating under a new concession framework—with additional regulations set to take effect on November 13—the retail market still accounts for about three-quarters of a total gaming market valued over €21 billion, with no reforms initiated.
Speaking at the SBC Summit in Lisbon last month, IMGL co-founder Quirino Mancini expressed skepticism about any significant reforms being introduced in the lead-up to Italy's next general election, regardless of the political landscape. "Gambling is a very sensitive issue," he noted, pinpointing this sensitivity as the primary reason for the stagnation in reform efforts.
Mancini highlighted that the necessity to reorganize the retail network was first introduced in the 2016 Stability Law nearly a decade ago, mentioning that although a technical framework has largely been established, political hurdles remain.
Retail operations feel the strain daily. Davide Diodato, CEO of HBG Online, a subsidiary of Novomatic, explained that while online licenses last for nine years, retail concessions are reviewed annually, hampering investment and job creation within physical shops.
Chiaccio pointed out that customer preferences are shifting towards online gambling, which offers 24/7 access to a wider variety of products and promotions. In contrast, retail shops face limitations due to distance regulations, restricted operating hours, and numerous permit prerequisites. With commercial investments increasingly directed towards online platforms, physical locations are experiencing escalating costs alongside dwindling revenues.
The decline in tax revenues reflects this troubling trend; according to Italy’s Ministry of Economy and Finance, total gaming tax income fell by 6.3% to €3.64 billion during the first half of 2026.
AGSI has put forth a proposal for the interim period aimed at making retail locations more appealing by introducing new products through authorized channels. Chiaccio referred to the trial from 1998-1999 that successfully integrated sports betting within horse racing agencies as a suitable example for this initiative.
Additionally, AGSI seeks to establish a collaborative consultation forum with government representatives, institutions, and industry stakeholders to start drafting the rules for future tenders immediately. They advocate for these rules to allow small to medium enterprises to compete alongside larger companies, and they propose a more evenly distributed national network featuring trained personnel, taking inspiration from the regional law in Campania.
Chiacchio cautioned that a decreasing legitimate network may push customers towards illegal operations. He emphasized that enforcement efforts should be directed at cracking down on unlicensed activities, rather than imposing further restrictions on authorized businesses.
AGSI's frustrations echo those of the operators’ association AGIC, whose members include major companies like Flutter, Lottomatica, Entain, and Bet365. AGIC has lamented that repeated extensions have deprived the retail sector of long-term stability for nearly a decade.
