Italy's gambling industry may shoulder its approximate €700 million share of the 2027 budget through the aggio, the commission on lottery sales, and online gaming, as reported by the financial publication Milano Finanza. This information surfaced as a brief mention in the broader context of the budget, indicating a shift away from burdens on land-based retail. However, this detail remains at the pre-Cabinet reporting stage, meaning adjustments could occur in the final document.
The Cabinet is expected to convene today, October 28, around 3 PM, as noted by Il Sole 24 Ore via LaPresse. This timing has seen several delays. The proposed €23.5 billion budget relies on approximately €5 billion from banks and insurers. Within the governing majority, sources indicated that a previously planned income tax cut for individuals earning over €50,000 has been scrapped.
The reported €700 million is a simplified figure. The draft budget submission to Brussels outlines gambling's financial contributions at €718 million for both 2027 and 2028 and €478 million for 2029, totaling nearly €1.9 billion over three years.
However, this aspect of the Milano Finanza report conflicts with other recent analyses. For example, Agimeg outlined scenarios related to a potential one-point increase in PREU, the levy imposed on gaming machine stakes, and more expensive concession extensions. Similarly, Jamma mentioned that a rise in the PREU is encountering pushback from the governing coalition.
The lottery situation can raise legal questions surrounding contracts. The Lotto concession, which was awarded to the LottoItalia consortium led by IGT, extends until 2025 at a fixed 6% aggio. Adjusting that rate during the concession period could lead to legal challenges. A reduction in the aggio would also diminish the portion of revenue retained by operators and their retail partners.
Online operators are likely to face additional expenses, layering on top of their current obligations. Licenses under the new regime, effective from November 2025, require an upfront cost of €7 million each. These operators also contribute an annual concession fee of 3% of their net margin and must comply with updated technical regulations by February 15, 2027. Furthermore, Italy's Dignity Decree continues to prohibit gambling advertising.
Land-based operators are not exempt from these financial changes either. Their licenses for slots, retail betting, and bingo will expire on December 31, 2026, necessitating another costly extension to maintain operations. The current extension generates approximately €232.76 million annually.
Retail sectors had expressed concerns about bearing a larger share of this financial load. Dario Peirone, general director at the Istituto Milton Friedman think tank, cautioned last week that any additional tax constraints “would spell the final collapse of land-based gambling.”
Coincidentally, both Italy and the UK are addressing gambling taxes today, with UK Chancellor John Healey anticipated to raise the machine games duty as part of his inaugural autumn budget. Once the Italian Cabinet approves the budget, it will be forwarded to parliament, leaving operators in the dark about their exact responsibilities until the formal text is made public.
