Italy's budget proposal introduces new tax on gambling machines

Italy's 2027 draft budget law includes a package that increases taxes on gambling machines and extends some licences for physical betting and lottery games until the end of 2029. The proposal has been sent to parliament, and committee discussions are expected to begin towards the end of this week. Alongside the additional revenue target, the package also provides for a new licensing system for esports and LAN gaming venues.

On the tax side, the PREU rate on AWP machines will rise from 24% to 25%, and on video lottery terminals from 8.6% to 9.6%. A discounted rate of 20% will apply to machines that return at least 70% of winnings as prizes. The same proposal raises the maximum stake on slot games from 1 euro to 2 euros, and the maximum payout from 100 euros to 200 euros.

On the licensing side, betting, slot, VLT and bingo concessions were due to expire on 31 December 2026. Under the proposal, these concessions will remain in force until the end of 2029. Betting shops where betting is the main activity will pay 14,250 euros per year, while points where betting is a secondary activity will pay 8,550 euros. The Gratta e Vinci scratch card concession will be extended to 2029 in exchange for 188 million euros. A weekly additional draw will also be added to Lotto and SuperEnalotto.

The proposal also requires esports and LAN venues that offer skill-based games without cash prizes to obtain approval from the Italian Customs and Monopolies Agency. A fee of 200 euros per device, 1,000 euros per venue and 10,000 euros per online platform is envisaged. All forms of gambling and betting will be banned at these facilities. The package also includes a settlement mechanism aimed at resolving long-running disputes related to the levy introduced on slot machines in 2015.

The Finance Ministry expects 700 million euros in revenue from gambling taxes in 2026 and 2027. According to the budget proposal, the PREU increase could bring in 334 million euros a year, and the concession extensions could bring 281 million euros. There is no tax change for online gambling. The online gambling sector moved to a new licensing regime last year, and some parts of the physical gambling sector have criticised this. The As.Tro trade association has called an urgent meeting of its technical committee to assess the impact of the machine tax and concession measures.