Italy's gambling sector is poised to contribute approximately €700 million to the country's 2027 budget, predominantly funded through the aggio, or commission on lottery sales, alongside online gaming revenue. This information was reported by financial daily Milano Finanza as a part of a broader budget analysis. Previously, discussions regarding this mechanism had been inconclusive.
If this funding strategy is confirmed, it would relieve land-based retail operations of a significant tax burden. However, since this detail is still under pre-Cabinet deliberation, changes may be made before the final decision is reached.
The Cabinet is scheduled to meet at around 3 PM on October 28, although this timing has faced multiple delays, as noted by Il Sole 24 Ore via LaPresse. The proposed €23.5 billion budget package is expected to rely on roughly €5 billion from banks and insurance companies. Additionally, sources from the governing majority indicate that a previously planned income tax cut for individuals earning above €50,000 has been scrapped.
The figure of €700 million is approximated, with the draft budget submitted to Brussels indicating that gambling's contribution could actually total €718 million for 2027 and 2028 and €478 million in 2029, culminating in nearly €1.9 billion over a three-year period.
Notably, this new development contrasts with earlier reports. For instance, Agimeg recently outlined scenarios that involved a potential one-point increase in PREU, Italy's taxation on gaming machine stakes, alongside more expensive concession extensions. In contrast, Jamma highlighted pushback within the governing coalition against a smaller PREU increase.
The implications for each gambling segment are significant. The lottery aspect raises legal questions, particularly with the Lotto concession having been re-awarded in 2025 to the LottoItalia consortium, under IGT, for nine years at a fixed aggio of 6%. Modifying this rate midway through the concession could pose legal challenges, and lowering the aggio would adversely affect the revenue share for operators and their retail networks.
Online operators may also face increased costs in addition to their current expenses. Licenses introduced in November 2025 carry a €7 million fee each, and operators must also remit an annual concession fee of 3% of net margin. They are required to certify their systems under new technical regulations by February 15, 2027. Moreover, Italy's Dignity Decree prohibits gambling advertising.
On the other side, land-based operators are not exempt from additional financial obligations either. Their licenses for slots, retail betting, and bingo will expire on December 31, 2026, necessitating another paid extension, which currently yields approximately €232.76 million annually.
Retail stakeholders had expressed concerns about bearing a larger portion of the financial load. Dario Peirone, the director general of the Istituto Milton Friedman think tank, cautioned last week that further tightening of taxes would lead to the demise of land-based gambling in Italy.
On the same day, Italy and the UK are both set to establish gambling tax measures, with UK Chancellor John Healey anticipated to increase the duty on machine games in his initial autumn budget. After the Cabinet ratifies the bill, the final text will proceed to parliament, at which point operators will gain clarity on where the financial responsibility ultimately lies once the details are disclosed.
