Italy’s retail gambling sector faces the looming expiration of concessions without any immediate reform in sight. As operators report escalating challenges, they are urging for urgent measures to support their businesses and keep shops operational.
The concessions for various forms of betting, including bingo, AWPs, and VLTs, are set to expire on December 31, 2026. A reorganization decree designed to revamp the land-based gambling market was postponed in August, missing the government’s deadline of August 29. Industry stakeholders anticipate yet another delay, which would mean continued uncertainty for the entire network.
In response, AGSI (Associazione Gestori Scommesse Italia), representing betting shop managers, is advocating for interim measures to sustain gaming machines, horse racing, and sports betting until new tenders can be established. "Gaming machines, horse racing and betting cannot wait three years," stated AGSI president Pasquale Chiacchio in comments made to Italian trade publication Jamma.
As Italy’s online gambling market rapidly evolves under a new concession framework, the gap between online and brick-and-mortar operations continues to widen. Online regulations are set to tighten further on November 13. Although retail operations account for approximately three-quarters of the gaming market, valued at over €21 billion, they languish without any progress on reform.
During a panel discussion at the recent SBC Summit in Lisbon, IMGL co-founder Quirino Mancini expressed skepticism about any political party in Italy taking on the retail reorganization, particularly in the year leading up to the next general election. He highlighted that gambling remains a sensitive political issue that has hampered reform efforts.
Mancini pointed out that the need for a network reorganization was first articulated in the 2016 Stability Law, suggesting that while a technical consensus exists, the real barrier is political in nature.
The impact of these delays is palpable, with operators struggling daily. Davide Diodato, CEO of Novomatic-owned HBG Online, indicated that while online licenses are issued for nine years, retail concessions are renewed annually, complicating long-term investments and hiring efforts for shopkeepers.
Chiacchio emphasized a concerning trend where customers are migrating to online platforms, attracted by round-the-clock access, diverse products, and competitive promotions. Retail shops, on the other hand, are restricted by distance regulations, limited operating hours, and bureaucratic hurdles. Consequently, operators are diverting their commercial investments online, resulting in increasing costs and declining revenue for physical venues.
This challenging environment is noticeably affecting tax revenues, with the Ministry of Economy and Finance reporting a 6.3% decrease in total gaming tax revenue, bringing it down to €3.64 billion in the first half of 2026.
AGSI is calling for enhancements to the transition period, advocating for a strategy to make retail shops more appealing, including the introduction of new products available through agencies and authorized outlets. Chiacchio highlighted the successful 1998-1999 trial which facilitated sports betting in horse racing agencies as a model.
Additionally, the association seeks to establish a consultation forum involving government bodies, institutions, and industry stakeholders to begin drafting tender regulations. They are pushing for rules that would allow small and medium-sized enterprises to compete alongside larger entities, as well as advocating for a more evenly distributed national network staffed by trained personnel, drawing inspiration from regional regulations in Campania.
Chiacchio warned that a declining legal market would only serve to bolster illegal operators, arguing that enforcement should focus on the black market while alleviating restrictions on licensed shops.
AGSI is not alone in expressing its frustrations. AGIC, another association representing operators including Flutter, Lottomatica, Entain, and Bet365, stated that frequent extensions have left the retail market devoid of long-term certainty for nearly a decade.
