Italy's gambling sector may shoulder its approximate €700 million portion of the 2027 budget by utilizing the aggio, which is the commission on lottery sales, and revenue from online gaming, according to financial outlet Milano Finanza. This information is presented as a brief note within the broader context of the budget coverage. Previously, there had been uncertainty surrounding this funding mechanism.
If this approach is confirmed, it would relieve the burden from land-based retail operations. However, this detail is still in the pre-Cabinet reporting phase, meaning the final outcome could vary.
The Cabinet is scheduled to convene around 3 PM today, October 28, as reported by Il Sole 24 Ore via LaPresse, although previous timings have shifted. The proposed €23.5 billion budget package anticipates around €5 billion in funding from banks and insurers, according to Sky TG24. Sources close to the governing majority indicate that a proposed income tax reduction for individuals earning over €50,000 has been scrapped.
The €700 million figure is rounded; the draft budgetary plan submitted to Brussels indicates a contribution from gambling of €718 million in 2027 and 2028 and €478 million in 2029, totaling nearly €1.9 billion over three years.
This perspective from Milano Finanza contrasts with recent analyses. For instance, Agimeg reported scenarios built around a potential one-point increase in PREU, Italy’s tax on gaming machine stakes, and more expensive concession renewals. In contrast, Jamma noted that a smaller increase in PREU is currently facing opposition within the governing majority.
The implications for various segments of the gambling industry are significant. The lottery aspect raises questions regarding contracts. The Lotto concession was previously awarded in 2025 to the LottoItalia consortium, led by IGT, for a fixed duration of nine years with a 6% aggio. Altering this rate during the concession may pose legal challenges. A lower aggio could also decrease the portion of revenues retained by operators and their retail networks.
Online operators would encounter additional costs on top of their existing ones. Licenses under the system implemented in November 2025 cost €7 million each, while licensees are also required to pay an annual concession fee equating to 3% of their net margins. A certification of systems under updated technical regulations must be completed by February 15, 2027, and Italy’s Dignity Decree continues to prohibit gambling advertising.
Land-based operators remain under scrutiny as well. Licenses for slots, retail betting, and bingo are set to expire on December 31, 2026, necessitating another paid extension. This current extension contributes approximately €232.76 million annually.
Retail groups previously expressed concerns about an increased share of this burden. Dario Peirone, director general of the think tank Istituto Milton Friedman, cautioned last week that further tax increases could result in the downfall of land-based gambling operations.
Both Italy and the UK are setting gambling taxes today, with UK Chancellor John Healey anticipated to raise machine games duty in his inaugural autumn budget. Once Italy's Cabinet ratifies the bill, it will proceed to parliament, and operators will only ascertain who bears the financial weight once the official text is released.
