The Italian government’s budget proposal for 2027 contains significant changes to the gambling sector, including an increase in taxes on gaming machines, a doubling of maximum stakes for slot machines, and an extension of land-based gambling concessions through 2029.
The proposed legislation, now moving to parliament, indicates that the PREU tax, which applies to slot machines (AWP), will increase from 24% to 25% starting January 1, 2027. Additionally, the tax on video lottery terminals (VLT) will rise from 8.6% to 9.6%. For slots that offer a minimum payout of 70%, a reduced tax rate of 20% will apply. Concurrently, the maximum stake for each slot game will increase from €1 to €2, with the maximum prize also doubled from €100 to €200.
The concessions for betting, slots, VLTs, and bingo, which are set to expire on December 31, 2026, will now last until the end of 2029. Betting shops will incur an annual fee of €14,250 where gambling is the primary business, and €8,550 if it is secondary. Concessionaires for slots and VLT networks will be charged €150 per slot permit and €7,500 per VLT right over the length of the concession renewal. Monthly fees for bingo halls will range between €6,500 and €14,500, determined by the sales from each hall’s cards.
Additionally, the concession for the Gratta e Vinci scratchcards has been extended to 2029 at a cost of €188 million, while Lotto and SuperEnalotto are set to benefit from an additional weekly draw.
The legislation will also introduce a licensing framework for esports and LAN gaming venues that provide skill-based games without monetary prizes. These halls will be required to obtain authorization from the ADM, with fees set at €200 per device, €1,000 per hall, and €10,000 per online platform. All forms of betting will not be permitted in these venues. Furthermore, the bill addresses the long-standing disputes surrounding a 2015 tax on slot machines through a proposed settlement scheme.
Estimates suggest that these new measures could generate around €952 million in revenue for 2027, surpassing the €700 million forecasted by Prime Minister Giorgia Meloni just last week. The largest contributors to this revenue are projected to be €334 million from the increased PREU tax, €281 million from the extended concessions, and €188 million from scratchcards. If all parties engage in the settlement regarding the 2015 levy, an additional €71.62 million could be collected. A technical report attributes the PREU increase and concession renewals to a nearly €2 billion revenue boost over the years 2027 to 2029, anticipating a 30% rise in slot takings under the new stake policies.
The proposal does not include any new online gambling levies or adjustments to the lottery commission (aggio), confirming prior expectations that most of the fiscal responsibility will fall on the retail sector rather than online and lottery sectors, which had been speculated in earlier reports.
However, these proposed changes have sparked criticism from the land-based gaming industry. According to Agimeg, the trade association As.Tro has called for an urgent meeting of its technical committee to evaluate the potential effects of the new slot and VLT regulations.
The budget bill is set to be debated in the Chamber of Deputies, with hearings anticipated to commence around November 5, and amendments due by November 17. The parliament must finalize the budget by December 31.
