Italy's budget proposal for 2027 includes significant changes to the gaming sector, such as an increase in taxes on gaming machines, a doubling of maximum stakes on slots, and an extension of land-based gambling concessions until the end of 2029. This certified text is now set to move to parliament for discussion.
Under the proposed budget, the Prelievo Erariale Unico (PREU) tax on slot machines will rise from 24% to 25%, while video lottery terminals (VLT) will see an increase from 8.6% to 9.6%. For slots that provide a payout of at least 70%, a lower rate of 20% will apply. Additionally, the maximum stake for each slot game will increase from €1 to €2, with the maximum potential prize doubling from €100 to €200.
The bill also extends existing concessions for betting, slots, VLTs, and bingo, which were set to expire on December 31, 2026, now running until the end of 2029. Betting shops will be required to pay an annual fee of €14,250 where gambling is the primary business and €8,550 where it is secondary. Slot and VLT network operators will incur costs of €150 per slot permit and €7,500 per VLT permit for the entire extension period, while bingo facilities will face monthly fees ranging from €6,500 to €14,500, based on their card sales.
The concession for Gratta e Vinci scratchcards will also continue through 2029 for a fee of €188 million, and Lotto and SuperEnalotto will have an additional weekly draw introduced.
Notably, the bill establishes a licensing framework for esports and Local Area Network (LAN) gaming halls that host skill games without cash prizes. These establishments will need authorization from the ADM and will incur fees of €200 per device, €1,000 per hall, and €10,000 per online platform. Betting will be prohibited in these venues. Additionally, the proposal offers a settlement scheme for unresolved disputes relating to the 2015 levy on slot machines.
Projected revenue from these changes is estimated to reach about €952 million in 2027, surpassing the €700 million figure announced by Prime Minister Giorgia Meloni the previous week. The largest revenue sources are expected to come from the PREU tax increase, projected to generate €334 million, concession extensions at €281 million, and scratchcard contributions of €188 million. If fully engaged, the settlement of the 2015 levy could contribute an additional €71.62 million.
The technical report estimates the PREU increase and concession extensions could yield nearly €2 billion over a three-year period from 2027-2029, assuming slot revenues rise approximately 30% with the new stake limits in place.
There will be no new levy imposed on online gambling, nor will there be adjustments to the lottery commission, confirming earlier insights that retail would shoulder the majority of the tax burden, as previous suggestions indicated the impact might extend to lotteries and online platforms.
The proposed changes have faced opposition from the land-based gaming sector. Reports indicate that the As.Tro trade association is convening an extraordinary meeting to evaluate the implications of the new measures for slots and VLTs, as provided by Agimeg.
Next, the bill will be reviewed by the Chamber of Deputies, with discussions anticipated to commence around November 5, followed by amendments due by November 17. To be finalized, parliament must approve the budget by December 31.
