Gambling Sector Faces 700 Million Euro Burden in Italy's Budget

The gambling sector in Italy is expected to contribute around 700 million euros to the 2027 budget. According to the newspaper Milano Finanza, this share could be covered by the aggio commission on lotto sales and by online games. The newspaper's budget coverage mentioned this detail in a single line, and it had previously reported that the mechanism had not yet been determined.

If this arrangement is approved, the burden would shift away from physical retail outlets. The report, however, is a preview ahead of the Council of Ministers meeting. The meeting is planned for this afternoon, but its timing has been postponed several times. The package totals 23.5 billion euros, and around 5 billion euros of it is expected to come from banks and insurance companies.

The lotto concession was awarded in 2025 to the LottoItalia consortium. The consortium, led by IGT, was granted a fixed aggio rate of 6% for nine years. Changing this rate during the concession could be legally difficult. Lowering it, however, would reduce the share remaining with operators and retail networks.

Online operators already face new costs. Under the regime that took effect in November 2025, each licence costs 7 million euros, and operators pay an annual concession fee of 3% of net gaming revenue. They must certify their systems under the new technical rules by 15 February 2027. For physical operators, slot, retail betting and bingo licences are set to expire on 31 December 2026, and a paid extension is reported to be needed.

Dario Peirone, director general of the Istituto Milton Friedman think tank, said last week that further tax tightening would mean the end of physical gambling. Meanwhile, UK Chancellor John Healey is expected to raise the gaming machine tax in his first autumn budget.