Italy's gambling sector may be responsible for contributing approximately €700 million to the 2027 budget through both the aggio, a commission on lottery sales, and revenues from online gaming, according to financial newspaper Milano Finanza. This information appeared in a single line within the paper's broader budget coverage. Previous reports indicated that the mechanism for this funding was not yet determined.
If this configuration is confirmed, it would alleviate the financial burden from land-based retail venues. However, since this detail comes from pre-Cabinet reports, the final version could vary.
The Cabinet is scheduled to convene at approximately 3 p.m. on October 28, as reported by Il Sole 24 Ore via LaPresse, although its timing has been delayed several times. The proposed €23.5 billion budget package anticipates raising around €5 billion from banks and insurers, according to Sky TG24. Officials within the ruling coalition have indicated that a planned income tax reduction for individuals earning more than €50,000 has been abandoned.
The €700 million figure is an estimate. The draft plan sent to Brussels details the gambling sector's contribution as €718 million for 2027 and 2028, with a decline to €478 million in 2029, totaling nearly €1.9 billion over three years.
This piece of information from Milano Finanza contradicts other recent analyses. On the previous day, Agimeg outlined scenarios based on a potential one-point increase in PREU, Italy’s tax on gaming machine bets, as well as more costly concession extensions. In contrast, Jamma reported that a more modest increase in PREU is facing opposition within the governing coalition.
Different segments of the industry stand to be impacted. Regarding lotteries, there are contractual implications to consider. The Lotto concession was awarded to the LottoItalia consortium, headed by IGT, for a nine-year period starting in 2025 with a fixed aggio rate of 6%. Altering this rate during the concession could pose legal challenges. A reduction in the aggio rate would also decrease the portion of revenue that operators and their retail partners retain.
Online operators would have to bear additional costs on top of their current expenses. Licences under the regime that began in November 2025 come with a price tag of €7 million each, alongside an annual concession fee amounting to 3% of net margin. Furthermore, operators must ensure their systems comply with new technical regulations by February 15, 2027, while Italy’s Dignity Decree still prohibits gambling advertising.
Land-based operators also face challenges, as their licences for slots, retail betting, and bingo are set to expire on December 31, 2026, necessitating another payment for extensions. The current extension generates roughly €232.76 million annually. Retail groups had expressed concerns about potentially shouldering a larger portion of the financial responsibility. Dario Peirone, director general of the Istituto Milton Friedman, cautioned last week that further tax increases could lead to the collapse of land-based gambling.
On the same day, the UK also addressed gambling taxes, with Chancellor John Healey expected to increase the duty on machine games in his initial autumn budget. Once the Italian Cabinet ratifies the bill, it will be submitted to parliament, and operators will determine their financial obligations once the final text is made public.
