Italy's gambling industry may be responsible for covering approximately €700 million of the projected budget for 2027 through a combination of the aggio, which is the commission on lottery sales, and revenues from online gaming. This information was reported by financial daily Milano Finanza, noting that this particular detail appeared in a broader discussion regarding the budget. Earlier reports had indicated that the funding mechanism was still under consideration.
If confirmed, this approach would alleviate some of the financial pressures on land-based retail operations within the sector. However, since this detail is part of pre-Cabinet discussions, it is subject to change before the final proposal is presented.
The Cabinet meeting is scheduled for today, October 28, around 3 PM; however, the timing has experienced several delays, according to Il Sole 24 Ore via LaPresse. The overall budget package of €23.5 billion depends on about €5 billion sourced from banks and insurance companies. Reports suggest that a proposed income tax reduction for individuals earning over €50,000 has been abandoned.
The €700 million figure is approximate. The draft budget submitted to Brussels outlines contributions from the gambling sector at €718 million for both 2027 and 2028, with a reduced estimate of €478 million for 2029, amounting to nearly €1.9 billion over the three years.
However, this line from Milano Finanza contradicts some recent analyses. For example, Agimeg noted potential scenarios that included a one-point increase in the PREU tax, which is applied to gaming machine stakes, coupled with more expensive concession extensions. Meanwhile, reports from Jamma indicated that a smaller PREU rise is facing opposition within the governing coalition.
Each segment of the industry faces unique challenges and potential costs. With regard to lotteries, raising the commission rate during the current nine-year Lotto concession awarded to the LottoItalia consortium, led by IGT since 2025, presents legal complications. A reduction in the aggio would diminish the revenue share for operators and their retail networks.
Online gaming stakeholders already incur significant expenses; licenses introduced in November 2025 cost €7 million, along with an annual concession fee of 3% of net margin. Additionally, operators have to meet new technical certification requirements by February 15, 2027, and Italy's Dignity Decree remains in effect, prohibiting gambling advertisements.
Land-based operators are also facing renewal challenges since licenses for slots, retail betting, and bingo will expire by December 31, 2026. A paid extension will be necessary, with current license renewals generating approximately €232.76 million annually.
Concerns about retail operators bearing an excessive share of the financial burden linger. Dario Peirone, the director general of the Istituto Milton Friedman think tank, cautioned last week that additional tax increases could lead to the "final collapse of land-based gambling".
On a related note, both Italy and the UK announced new gambling tax measures today, with Chancellor John Healey expected to increase the machine games duty in his first autumn budget. After the Cabinet approves the budget, it will proceed to parliament, leaving operators awaiting clarity on the financial responsibilities until the finalized text is published.
