Italian regulator to also oversee esports venues

Article 25 of Italy's draft 2027 budget bill extends the oversight of gambling regulator ADM to LAN gaming venues. The venues will fall under a licensing and tax regime similar to the one applied to betting and slot machines. IIDEA, which represents the video game sector, argues that the costs are disproportionate for an industry still in its growth phase and has asked the government to withdraw the provision.

LAN venues are places where customers pay an hourly fee to play games over a network, and they mostly host local tournaments. No cash prizes are awarded, and the bill explicitly bans betting in the venues. These businesses are common in some parts of Asia but remain a small segment in Europe.

Under the bill, venues must obtain an ADM license and have at least 20 gaming stations. Each station will be taxed at 8 percent on a presumed revenue of 15,000 euros per year, or 25,000 euros for large simulators. This means roughly 1,200 euros per PC per year, regardless of actual revenue. Venues will also pay a 200 euro fee per device and a 1,000 euro licensing fee per venue, and businesses will be required to keep their operating records for at least five years.

The government's technical report projects that there will be 2,300 venues by 2028. That number works out to about one venue for every town with more than 5,000 residents. According to the report, the tax could bring in about 55.2 million euros per year from 2028, plus more than 10 million euros in fees. IIDEA says Italy has around 70 LAN centers, of which only about 20 meet the 20-station requirement. The association also says the whole Italian esports sector was worth between 32 and 35 million euros as of 2026, which is less than the annual tax revenue the government expects. IIDEA also points out that the technical report admits there is no reliable data on LAN venues, and it wants the sector to be consulted before any new obligations are imposed.

The bill is currently being debated in the Chamber of Deputies. Amendments must be submitted by November 17. The esports provision sits alongside other gambling measures, including a tax increase on slot machines and VLTs and an extension of betting and machine concessions to 2029.