Italy's budget relies on gambling tax

The Italian Ministry of Economy and Finance expects the gambling sector to generate 700 million euros in tax revenue in 2026 and 2027. This figure falls within earlier estimates that ranged from 400 to 500 million euros up to 1 billion euros. The Budget Law approved by Prime Minister Giorgia Meloni will use revenue from gambling, finance and energy taxes to support spending and tax cuts of 26 billion euros in 2027 and 27 billion euros in 2028.

The approved budget does not include a new tender for Gratta e Vinci scratch card games. The government is still considering extending the current concession for a fee. The concession is set to expire in September 2028.

The online betting market is nearing the end of the first year under the new licensing framework that took effect in November 2025. Notable provisions of the regulation include an annual licence fee of 7 million euros and a requirement for each brand to obtain its own licence.

The new framework for land-based gambling venues, however, remains unclear. Talks between the Finance Ministry and regional councils have been ongoing for two years. In August, Meloni instructed the ministry to complete the talks. Following that decision, ADM extended existing land-based gambling concessions until the end of 2028.

Many countries in Europe are targeting the gambling sector to increase tax revenue. In the United Kingdom, Machine Games Duty was raised by five percentage points. In the Netherlands, a rise in the tax rate led to a fall in tax revenue in 2025. Industry representatives argue that higher tax rates do not always mean more revenue.