Italy's budget plan for 2027 outlines significant changes to the gaming industry, with an increase in taxes on gaming machines, a doubling of maximum stakes for slots, and an extension of land-based gambling concessions through 2029. The official text of the bill is now being forwarded to parliament for approval.
Starting January 1, 2027, the tax on slot machines, known as the PREU machine levy, will rise from 24% to 25%. Similarly, the tax on video lottery terminals will increase from 8.6% to 9.6%. However, slots that return at least 70% in prizes will benefit from a reduced tax rate of 20%. Additionally, the maximum stake for slot games will double from €1 to €2, and the maximum potential payout will increase from €100 to €200.
Concessions for various forms of gambling, including betting, slots, video lottery terminals, and bingo, which are set to expire on December 31, 2026, will be extended through the end of 2029. Betting shops will incur annual fees of €14,250 for primary gambling operations and €8,550 for secondary activities. For the full extension period, concessionaires for slots and VLTs will pay €150 per slot permit and €7,500 per VLT authorization. Bingo halls will face monthly fees ranging from €6,500 to €14,500 based on card sales.
Moreover, the Gratta e Vinci scratchcard concession has been extended until 2029 for €188 million. In a move to enhance the market, Lotto and SuperEnalotto will feature an additional weekly draw.
The bill also introduces a new licensing requirement for esports and local area network (LAN) gaming halls that provide skill-based games without cash rewards. These venues must obtain authorization from the ADM, with associated fees of €200 for each device, €1,000 per hall, and €10,000 for online platforms. Importantly, all forms of betting will not be permitted in these establishments. The legislation includes a settlement proposal for ongoing disputes related to a 2015 levy on slot machines.
Projected revenue from these measures is estimated at approximately €952 million in 2027, surpassing the €700 million figure previously indicated by Prime Minister Giorgia Meloni. The revenue breakdown includes €334 million from the increased PREU tax, €281 million from the concession extensions, and €188 million from scratchcards. Participation in the settlement from the 2015 levy could contribute an additional €71.62 million.
According to the technical report, the combination of the PREU tax increase and the concession extensions is projected to generate nearly €2 billion from 2027 to 2029, assuming slot revenues increase by roughly 30% under the new stake limits.
The proposed budget does not implement any new taxes on online gambling nor does it alter the commission for lotteries, affirming expectations that the retail sector would shoulder the majority of the financial responsibility. During prior discussions, there had been speculation that both lotteries and the online segment might also contribute.
The proposed changes have drawn criticism from the land-based gambling industry. As reported by Agimeg, the trade association As.Tro convened an extraordinary meeting today to address potential repercussions of the slot and VLT regulations.
Next, the bill will be presented to the Chamber of Deputies, with hearings anticipated to commence around November 5 and amendments to be submitted by November 17. Parliament is required to finalize budget approval by December 31.
