Italy's gambling industry may contribute roughly €700 million to the 2027 budget, with potential funding sources identified as the aggio (commission on lottery sales) and online gaming, according to financial publication Milano Finanza. This indication appears as a singular entry in the publication's broader budget coverage. Previously, the details surrounding this arrangement had been uncertain.
If the report is accurate, this would alleviate the financial burden on land-based retail operations. However, the information remains in the pre-Cabinet reporting phase, suggesting that the final details could differ.
The Cabinet is scheduled to convene at approximately 3 PM today (October 28), as reported by Il Sole 24 Ore via LaPresse, although this timing has faced delays. The planned budget package totals €23.5 billion, reliant on around €5 billion sourced from banks and insurance companies, according to Sky TG24. In the governing coalition, sources indicate that a proposed cut in income tax for individuals earning over €50,000 has been abandoned.
The cited €700 million is a generalized estimate. The proposed budget submitted to Brussels suggests gambling's contribution will reach €718 million for both 2027 and 2028, and €478 million for 2029, totaling nearly €1.9 billion across three years.
This analysis from Milano Finanza raises contradictions with other recent reports. For instance, Agimeg presented scenarios considering a one-point increase in PREU (Italy’s gaming machine stake levy), alongside more expensive concession extensions. Meanwhile, Jamma disclosed that a more moderate PREU increase is facing resistance from the ruling coalition.
The implications for various sectors are considerable. The lottery's involvement introduces potential contractual issues. The Lotto concession was awarded to the LottoItalia consortium, spearheaded by IGT, in 2025 for a nine-year period at a fixed 6% aggio. Altering this rate during the concession presents legal challenges. A reduction in aggio could also diminish the amount retained by operators and their retail partners.
Online gaming operators would incur new costs on top of their existing expenses, with licenses under a new regime coming in at €7 million each. Additionally, they must pay an annual concession fee equivalent to 3% of their net margin and certify their systems under updated technical regulations by February 15, 2027. Italy's Dignity Decree continues to prohibit gambling advertising, adding another layer of complexity.
Land-based operators, too, are not exempt from financial obligations. Licenses for slots, retail betting, and bingo are set to expire on December 31, 2026, necessitating an additional paid extension. The current extension yields approximately €232.76 million annually.
Retail associations had been apprehensive about facing a larger portion of the financial responsibility. Dario Peirone, the general director of the Istituto Milton Friedman think tank, warned last week that any further tax increases could lead to the ultimate downfall of land-based gambling.
Both Italy and the UK will announce gambling tax changes today, with UK Chancellor John Healey anticipated to increase the machine games duty in his inaugural autumn budget. Once Italy's Cabinet endorses the proposed bill, it will progress to parliament, and operators will only ascertain where the financial responsibilities lie once the document is released.
