The Italian retail gambling sector is facing a critical juncture as its concessions are set to expire in just ten weeks, with no reforms on the horizon. Operators are urgently requesting assistance to maintain operations as the planned reorganization decree has been postponed.
Concessions for betting, bingo, and gaming machines, including AWPs and VLTs, will cease on December 31, 2026. A decree intended to restructure the land-based market and define terms for new tenders has been on hold since August, missing a crucial government deadline of August 29. Another extension appears imminent, meaning the industry will remain in a prolonged state of uncertainty, continuing the trend of stagnation it has experienced for years.
In light of this situation, AGSI (Associazione Gestori Scommesse Italia), representing betting shop owners, is pushing for immediate transitional measures to safeguard gaming machines, horse racing, and sports betting operations until new tenders can occur.
“Gaming machines, horse racing and betting cannot wait three years,” stated AGSI President Pasquale Chiacchio in comments reported by the Italian trade outlet Jamma.
The chasm between Italy's online and retail gambling markets is increasingly apparent. While the online sector is already operating under a new concession framework, effective November 13, the retail market, which still comprises about three-quarters of the gaming industry valued at over €21 billion, has made no progress towards reform.
At last month's SBC Summit in Lisbon, legal expert Quirino Mancini, who co-founded IMGL, expressed skepticism about any government taking action to reorganize retail gambling in the year leading up to Italy’s upcoming general election, regardless of its political affiliation. “Gambling is a very sensitive issue,” he remarked, suggesting that political considerations are stalling necessary reforms.
Mancini pointed out that plans to reorganize the gambling network were first mentioned in the 2016 Stability Law, indicating that while a technical framework has been largely agreed upon, political barriers remain.
The ramifications are evident for operators daily. Davide Diodato, CEO of HBG Online—a Novomatic subsidiary—highlighted that while online licenses are valid for nine years, retail concessions are renewed annually, creating significant obstacles for shop owners who struggle to invest and hire effectively.
As players increasingly migrate online, Chiacchio has noted that online gaming offers around-the-clock access with more options and promotional opportunities, contrasting sharply with the limitations facing retail establishments, which must comply with distance regulations, limited opening hours, and extensive permit requirements. Consequently, he argues, commercial investment is shifting online, leaving physical shops grappling with rising operational costs and dwindling revenues.
This shift is reflected in tax revenue, with total gaming tax income declining by 6.3% to €3.64 billion in the first half of 2026, as reported by the Ministry of Economy and Finance.
In response to these challenges, AGSI is advocating for the transition period to enhance the appeal of retail shops by introducing new products through agencies and authorized outlets. Chiacchio references a successful trial from 1998-1999 that incorporated sports betting into horse racing agencies as a relevant example.
Additionally, AGSI seeks to initiate discussions with the government and industry stakeholders to start drafting the tender rules promptly. Chiacchio emphasizes the importance of allowing small and medium-sized firms to compete alongside larger corporations and creating a more balanced national network featuring trained personnel, citing regional regulations from Campania as a model.
He warns that reducing the lawful network will only benefit illegal operators and insists enforcement efforts should focus on the black market rather than imposing further restrictions on licensed businesses.
AGSI's frustrations resonate with others in the sector. The operators’ association AGIC, which includes members such as Flutter, Lottomatica, Entain, and Bet365, has criticized the ongoing extensions that have left the retail market lacking long-term certainty for nearly a decade.
