Italy’s 2027 Budget Proposes Higher Slot Taxes, Increased Stakes and Gambling Concession Extensions

Italy’s proposed 2027 Budget Bill introduces a series of significant changes to the country’s land-based gambling sector, including higher taxes on gaming machines, doubled maximum slot stakes and prizes, and an extension of existing gambling concessions until the end of 2029. The measures are expected to generate approximately €952 million in additional public revenue in 2027, with the combined impact of certain tax and concession measures projected to approach €2 billion over the 2027–2029 period.

The proposed legislation, approved by the Council of Ministers on 28 October 2026, would increase the Prelievo Erariale Unico (PREU), Italy’s principal levy on gaming machines, from 24% to 25% for amusement-with-prize machines (AWPs), commonly known as slot machines. The rate applicable to video lottery terminals (VLTs) would rise from 8.6% to 9.6%. Both increases are scheduled to take effect on 1 January 2027.

A reduced PREU rate of 20% would apply to slot machines programmed to return at least 70% of the amounts wagered to players in prizes. The tax changes are accompanied by an increase in the permitted betting and prize limits. The maximum stake per game would double from €1 to €2, while the maximum prize would increase from €100 to €200.

The government expects the higher tax rates to generate approximately €334 million in additional revenue in 2027. The technical estimates also anticipate increased gaming activity following the higher stake limits, contributing to the projected fiscal returns over the following years.

A further major component of the package concerns the extension of land-based gambling concessions that are due to expire on 31 December 2026. The proposed framework would extend betting, slot machine, VLT and bingo concessions until 31 December 2029, subject to additional payments by operators.

Betting shops where gambling is the principal business activity would be required to pay an annual fee of €14,250 per operating right. Where betting is a secondary activity, the annual fee would be €8,550. Slot machine concessionaires would pay €150 per slot permit for the extension period, while VLT concessionaires would pay €7,500 per operating right. Bingo halls would face monthly payments ranging from €6,500 to €14,500, depending on their card sales.

The concession measures are expected to generate approximately €281 million in 2027. The legislation also provides for the extension of the Gratta e Vinci scratchcard concession until 2029, against a payment of €188 million. Lotto and SuperEnalotto would also benefit from an additional weekly draw.

The proposed budget includes a mechanism intended to resolve long-running disputes concerning an extraordinary contribution imposed on gaming machine concessionaires in 2015. The original contribution amounted to approximately €500 million, but a portion remains outstanding. Under the proposed settlement arrangement, eligible operators could obtain a reduction of their outstanding liabilities and exemption from interest, provided they waive ongoing legal proceedings and agree not to initiate further claims. The government estimates that the measure could generate up to €71.62 million if all eligible parties participate.

Another development concerns the regulation of esports and LAN gaming venues. The bill proposes a formal licensing framework for facilities offering skill-based esports and LAN competitions without cash prizes. Operators would require authorisation from the Customs and Monopolies Agency (ADM), with proposed fees of €200 per device, €1,000 per venue and €10,000 per online platform. Gambling and betting activities would be prohibited within these facilities.

Notably, the proposed budget does not introduce additional taxes on online gambling. The existing taxation framework for online gambling operators would remain unchanged, as would the commission arrangements applicable to lotteries. This means that the proposed increase in the sector's fiscal contribution would fall predominantly on land-based gambling operators rather than online betting and casino businesses.

The proposals have already attracted criticism from representatives of the land-based gambling industry. Trade associations have raised concerns that higher gaming machine taxes, combined with the additional concession payments, could place considerable financial pressure on operators and other businesses within the supply chain. Industry representatives argue that the sector is already facing declining activity in certain segments and that further increases in costs could threaten the viability of smaller operators and associated businesses.

The government, however, views the package as a means of securing additional public revenue while maintaining the existing regulatory structure and ensuring continuity for land-based gambling operations. The extension of concessions is particularly important for operators whose current rights would otherwise expire at the end of 2026, providing them with a further three years of authorised activity under the proposed arrangements.

The bill will proceed through the Italian parliamentary process, with hearings expected to take place in the Chamber of Deputies and amendments due by 17 November 2026. Parliament must approve the budget by 31 December 2026 for the proposed measures to take effect as scheduled.

If adopted in its current form, the package will represent a substantial adjustment to the economics of Italy's retail gambling sector. Operators will need to assess the combined impact of higher PREU rates, increased concession costs and changes to maximum stakes and prizes. Although the higher permitted stakes could support gaming revenue, the additional tax burden may offset some of the benefits, particularly for businesses operating with limited margins.

For online gambling operators, the absence of new taxation is a significant distinction within the proposed reforms. Nevertheless, the extension of the land-based concession framework and the introduction of new licensing requirements for esports venues demonstrate the government's broader intention to maintain and update its regulation of different gambling activities while increasing the fiscal contribution of the sector.

By fLEXI tEAM