Italy's retail gambling sector is facing uncertainty as existing concessions are set to expire in just ten weeks, with no reform on the horizon. Operators are now calling for immediate measures to keep their businesses operating amidst this turmoil.
Concessions covering betting, bingo, AWPs, and VLTs are due to lapse on December 31, 2026. A comprehensive reorganization decree aimed at revamping the land-based market, including the conditions for new tenders, was shelved in August, missing the government’s deadline of August 29. Observers anticipate yet another extension, leaving the industry stagnant in its long-standing state.
In light of this situation, AGSI (Associazione Gestori Scommesse Italia), representing betting shop managers, is urging the government for interim solutions to sustain gaming machines, horse racing, and sports betting until new tenders can be organized.
"Gaming machines, horse racing, and betting cannot wait three years," stated AGSI president Pasquale Chiacchio, during a recent discussion with Italian trade publication Jamma.
The disparity between Italy’s online and retail gambling sectors is becoming more pronounced. The online market is currently operating under a new concession framework, with additional regulations scheduled to take effect on November 13. However, retail gambling still accounts for approximately three-quarters of a market valued at over €21 billion, yet reform efforts for this sector have yet to commence.
Speaking at the SBC Summit in Lisbon last month, Quirino Mancini, co-founder of IMGL, expressed skepticism regarding any government initiative to reform retail gambling prior to Italy’s next general election, regardless of the political climate. He noted the sensitive nature of gambling as a topic, suggesting this is a key reason for the stagnation in reform.
Mancini pointed out that discussions surrounding the reorganization of the gambling network trace back to the 2016 Stability Law, around a decade ago, with a technical framework largely established. He emphasized that the impediment lies in political challenges rather than regulatory ones.
Operators are feeling the impact of these delays daily. Davide Diodato, CEO of HBG Online, a Novomatic subsidiary, remarked that online licenses are granted for nine years, while retail concessions are renewed yearly. This scenario complicates investment and hiring processes for shopkeepers.
Chiacchio highlighted a concerning trend: patrons are shifting towards online gambling, lured by 24/7 availability, a wider range of products, and more enticing promotions, while physical shops are constrained by distance regulations, restricted opening hours, and stringent permit requirements. Consequently, operators are diverting their commercial investments online, leading to increasing costs and declining revenue for retail shops.
This situation is reflected in tax receipts, with total gaming tax revenue dropping by 6.3% to €3.64 billion in the first half of 2026, according to the Ministry of Economy and Finance.
In response, AGSI is advocating for a transition period that enhances the appeal of physical shops with new products available through authorized outlets. Chiacchio cited the trial from 1998-1999, which successfully integrated sports betting into horse racing agencies, as a possible model.
The association also requests the establishment of a consultation table involving government, institutional bodies, and industry stakeholders to collaboratively devise tender regulations. AGSI wants these rules to allow small and medium-sized businesses to compete alongside larger firms and to ensure a more equitable distribution of the national network with adequately trained personnel, using Campania’s regional law as a benchmark.
Chiacchio cautioned that a diminished legal network would create opportunities for illegal operators, urging that enforcement efforts should focus on combating the black market rather than restricting licensed shops.
AGSI’s grievances resonate with others in the industry. AGIC, an operators' association representing entities such as Flutter, Lottomatica, Entain, and Bet365, has stated that ongoing concession extensions have left the retail market without long-term stability for nearly a decade.
