Italy's gambling sector may cover its estimated €700 million allocation for the 2027 budget via the aggio, which is the commission collected on lottery sales, along with contributions from online gaming. This detail was shared by the financial publication Milano Finanza, indicating a significant shift in funding strategy that had not previously been finalized.
The final decision on this matter remains pending, as the Cabinet's discussions are ongoing. As reported by Il Sole 24 Ore, the Cabinet is expected to convene around 3 PM today, October 28, though the meeting has experienced delays. The overall budget package amounts to €23.5 billion, which is said to depend on approximately €5 billion from banks and insurance companies. Inside sources have revealed that a proposed income tax cut for those earning over €50,000 has been removed from the agenda.
The figure of €700 million is considered an approximation. The draft budget submitted to Brussels specifies that the gaming sector's financial input would be €718 million for both 2027 and 2028, tapering to €478 million in 2029, culminating in a collective contribution of nearly €1.9 billion over three years.
There are conflicting reports emerging regarding this allocation. For instance, Agimeg reported on alternative scenarios that include a potential rise in the PREU, Italy's tax on gaming machine stakes, along with costly extensions for concessions. Meanwhile, a proposal for a smaller PREU increase is facing opposition within the governing coalition.
The lottery aspect presents several contractual issues. The Lotto concession, which was renewed in 2025 to the LottoItalia consortium, led by IGT, is bound by a fixed 6% aggio for nine years. Adjusting this rate mid-concession may prove legally challenging, and lowering the aggio could diminish the share retained by operators and their retail partners.
Online operators would also encounter additional costs layered on top of existing expenditures, as licenses under the new regime, which commenced in November 2025, are priced at €7 million each, in addition to a 3% annual concession fee based on net margins. Moreover, these operators must meet compliance with new technical certification standards by February 15, 2027, all the while Italy's Dignity Decree prohibits gambling advertisements.
Land-based operators are also not exempt from financial pressures. Their licenses for slots, retail betting, and bingo will expire on December 31, 2026, necessitating another costly extension, with the current extension bringing in around €232.76 million annually.
Retail gambling groups had harbored concerns over potentially carrying a larger financial load. Dario Peirone, director general of the Istituto Milton Friedman think tank, cautioned that any tightening of taxes could lead to the demise of land-based gambling establishments.
Italy and the UK are both reassessing gambling taxes today. UK Chancellor John Healey is widely anticipated to increase the machine games duty in his inaugural autumn budget. The approved budget will move to parliament after the Cabinet finalizes its decisions, leaving operators in uncertainty about their financial responsibilities until the finalized document is released.
