Italian Retail Gambling Operators Seek Transitional Rules as Market Reform Stalls

Italy’s land-based gambling sector is calling for urgent transitional measures as existing concessions approach their expiry at the end of 2026, with a long-awaited reform of the retail market still on hold. The Associazione Gestori Scommesse Italia (AGSI), which represents betting shop managers, is urging the government to establish temporary rules to maintain business continuity while new concession tenders are prepared.

Current concessions covering sports betting, bingo, amusement-with-prize machines (AWPs) and video lottery terminals (VLTs) are due to expire on 31 December 2026. However, the decree intended to reorganise the land-based gambling market and establish the framework for new tenders was shelved in August after the government missed its 29 August deadline. A further extension is widely expected, although the longer-term regulatory framework remains uncertain.

AGSI president Pasquale Chiacchio has argued that the sector cannot wait several more years for a comprehensive reform. The association is seeking bridging measures covering gaming machines, horse-racing betting and sports betting, allowing licensed operators to continue functioning until a new tender process can be completed.

The uncertainty highlights the increasingly different regulatory conditions facing Italy’s online and land-based gambling sectors. Online operators have already moved into a new concession framework, with further rules scheduled to take effect on 13 November 2026. Retail operators, by contrast, continue to rely on repeated extensions rather than a settled long-term system.

Land-based gambling nevertheless remains a significant part of the Italian market, accounting for approximately three-quarters of a sector worth more than €21 billion. Industry representatives say the absence of a clear framework makes it difficult for retail businesses to plan investments, recruit staff or assess the long-term viability of their outlets.

The issue has been under discussion for nearly a decade. The reorganisation of the retail gambling network was referenced in Italy’s 2016 Stability Law, but progress has been limited by disagreements and political sensitivities surrounding gambling regulation. At an industry panel in Lisbon in September, Quirino Mancini, co-founder and executive committee member of the International Masters of Gaming Law, expressed doubts that a government would undertake the reform before the next general election.

Mancini said the technical framework for reorganising the network was largely understood, including matters such as the size and density of the retail network, opening hours and minimum distances from sensitive locations. The outstanding obstacle, in his assessment, was primarily political rather than technical or administrative.

Retail operators also face growing competitive pressure from online gambling. Chiacchio has pointed to the availability of online products around the clock, alongside broader product offerings and promotional activity, as factors encouraging customers to move away from physical betting shops. Retail businesses remain subject to location restrictions, opening-hour limits and permit requirements, while their operating costs continue to put pressure on profitability.

Davide Diodato, chief executive of Novomatic-owned HBG Online, has also highlighted the difference between the two concession systems. Online licences operate on a nine-year basis, while retail concessions have been extended from year to year. Industry representatives argue that this disparity makes it harder for shop operators to make long-term commercial commitments.

The financial pressure on the sector is reflected in public revenue figures. According to Italy’s Ministry of Economy and Finance, gaming tax revenue fell by 6.3% to €3.64 billion in the first half of 2026. The decline adds to concerns about the sustainability of the existing retail model and the consequences of leaving the market in prolonged regulatory uncertainty.

AGSI wants the transitional period to be used to improve the commercial prospects of licensed outlets rather than simply extend the current arrangements. Its proposals include allowing agencies and authorised retail locations to offer additional products, with Chiacchio citing the introduction of sports betting through horse-racing agencies in 1998–1999 as a precedent for broadening retail activity.

The association is also calling for the government to establish a formal consultation process involving public authorities, institutions and industry representatives. The aim would be to begin drafting the terms of the next tenders before the current concessions expire, rather than waiting for the wider reform to be completed.

AGSI says the eventual tender framework should allow small and medium-sized businesses to compete alongside larger gambling groups. It also supports a more evenly distributed national retail network and trained staff, pointing to regional rules in Campania as a possible reference for future arrangements.

The association has warned that further contraction of the licensed retail network could create opportunities for illegal gambling operators. It argues that enforcement efforts should focus on unlicensed activity instead of imposing additional restrictions on businesses already operating within the regulated system.

AGSI is not the only industry organisation calling for greater certainty. The AGIC trade association, whose members include Flutter, Lottomatica, Entain and Bet365, has also raised concerns about the repeated extensions and the lack of a durable regulatory framework for the retail market.

With concessions scheduled to expire on 31 December 2026, the immediate priority for operators is securing clarity on how they will be permitted to continue operating while the government prepares the next stage of reform. Until a new tender framework is established, the sector remains dependent on interim decisions, leaving businesses with limited visibility over their regulatory and commercial future.

By fLEXI tEAM