Italy targets €700m from gambling taxes to help fund its 2027 budget plans

Italy’s gambling sector is expected to make a significant contribution to public finances under the government’s 2027 budget plan. The €700 million figure has brought gambling taxes into focus as operators adapt to a new online licensing system and await clearer rules for land-based venues. The measures intended to deliver the contribution, however, have not yet been fully detailed.

The Council of Ministers approved the draft Budget Law for 2027 on 28 October 2026. It must now pass through Parliament before becoming law. Prime Minister Giorgia Meloni presented the package as part of the government’s wider fiscal programme, overseen by Economy and Finance Minister Giancarlo Giorgetti.

Gambling taxes form part of the 2027 revenue plan

The government has identified a contribution of about €700 million from the gambling sector for 2027. The Draft Budgetary Plan for 2027 indicates that gaming-related measures are expected to represent around 0.03% of gross domestic product in both 2027 and 2028, equivalent to roughly €700 million a year. The projected share falls to 0.02% in 2029.

These figures do not confirm a specific tax-rate increase. The published material has not identified all the mechanisms through which the contribution will be collected. Until the relevant legislative provisions and implementing measures are published, it is not possible to attribute the full contribution to a particular tax or fee.

The wider package is intended to support measures worth about €26 billion in 2027 and €27 billion in 2028. Contributions from financial and energy businesses and spending adjustments are also part of the government’s funding plan. For operators, the key question is how the headline figure will translate into obligations across betting, casino gaming, lotteries, bingo and gaming machines.

Gratta e Vinci concession remains unresolved

The existing Gratta e Vinci instant lottery concession is due to expire in September 2028. A new tender has not been confirmed in the initial budget announcement, while a paid extension has been discussed as one possible option.

No final decision should be assumed. The duration and financial terms of any extension, along with the timing of a possible tender, remain for the authorities to determine. A clear timetable would help interested parties assess the requirements of a future procedure.

Online licensing reform changes market conditions

Italy’s online gambling market entered a new concession cycle in November 2025. Previous concessions ended on 12 November and the new nine-year arrangements began the following day. The tender resulted in 52 concessions being awarded to 46 operators.

The revised framework introduced a one-off payment of €7 million for each concession, with a maximum of five concessions available to a single corporate group. This is not an annual licence fee. Concessionaires must also pay an annual charge equal to 3% of their net gaming margin.

Each concession must operate through a single website using an Italian national domain. The rules also removed the previous model of secondary branded websites, commonly known as skins. This has changed the financial and operational conditions for companies that previously managed multiple websites under a more flexible structure.

Land-based gambling rules remain unsettled

Under the 2024 Budget Law, concessions covering betting shops, bingo and gaming machine management networks were extended on a paid basis until 31 December 2026. This remains the relevant statutory timetable and should not be confused with reports about possible further extensions.

The government is also seeking a more consistent national approach to physical gambling venues. Regional laws and municipal rules differ on venue locations and opening hours. A parliamentary review has noted that uncertainty over these restrictions has complicated new concession procedures.

Further discussions between national and regional authorities will be important. Any new framework must clarify how national licensing arrangements interact with local responsibilities. Until decisions are adopted, operators may face uncertainty about the rules after the current extension period. Reports of additional extensions or concession charges remain proposals unless confirmed through legislation or formal decisions.

European tax measures offer a wider comparison

Italy is not alone in reviewing gambling-related taxation. In the United Kingdom, Chancellor John Healey’s 2026 Budget announced an increase in Machine Games Duty from 20% to 25% for machines with stakes above £1 or prizes above £100. The revised rate is due to take effect on 1 April 2027 and targets higher-stake or higher-prize machines rather than every machine.

The UK government has linked the change to support for retail, hospitality and leisure businesses through business-rate measures. The effect on individual venues will depend on the machines they operate and their trading conditions.

In the Netherlands, gambling tax rose from 30.5% to 34.2% in January 2025. The Dutch government’s 2025 financial report recorded receipts around €256 million below the budget estimate, while the amount collected was broadly similar to 2024. The report identified possible behavioural effects from the higher rate and changes to online gambling rules. This does not prove that the tax increase alone caused the shortfall, but it illustrates the difficulty of forecasting revenue when operators and consumers may respond to higher costs.

Conclusion

Italy’s planned gambling contribution is an important part of the 2027 budget debate, but the €700 million figure is only the starting point. The final legislation will determine which parts of the sector carry the cost and whether the contribution comes through taxes, concession payments or other measures.

Online operators are already working under a revised licensing structure, while land-based businesses are approaching the end of existing concession extensions. The future of Gratta e Vinci adds another unresolved question.

For policymakers, the challenge is to secure reliable revenue without making investment less predictable or weakening the regulated market. For operators, the immediate priority is to follow the budget’s progress and distinguish confirmed legal requirements from proposals still under discussion. Clear decisions on taxation, licensing and retail concessions will be essential to balancing public finances with a stable gambling sector.

FAQs

How much does Italy expect to collect from gambling in 2027?
The government has identified a contribution of approximately €700 million from the gambling sector for 2027. Draft planning figures also indicate a similar annual contribution in 2028.

Does the €700 million figure cover 2026 and 2027?
The latest budget information relates to 2027, with draft planning figures indicating a comparable amount for 2028. It should not be described as a combined 2026 and 2027 forecast.

Has Italy's 2027 Budget Law been fully approved?
The Council of Ministers approved the draft on 28 October 2026. It must still complete the parliamentary process before becoming law.

How will gambling taxes affect Italian operators?
The final impact will depend on the measures adopted by Parliament. Different segments, including online gambling, betting, lotteries and gaming machines, may face different financial obligations.

What is the new online gambling concession fee in Italy?
The framework introduced a one-off payment of €7 million for each concession. Operators may obtain up to five concessions per corporate group.

Do Italian online gambling operators also pay an annual fee?
Yes. In addition to the initial concession payment, operators are required to pay an annual charge equal to 3% of their net gaming margin.

When did Italy's new online gambling licensing framework begin?
The new nine-year concession arrangements began on 13 November 2025, following the conclusion of the previous concessions.

When does the Gratta e Vinci concession expire?
The existing concession is scheduled to expire in September 2028. A possible paid extension has been discussed, but its final terms have not been confirmed.

When are Italy's existing land-based gambling concessions scheduled to expire?
Under the 2024 Budget Law, the relevant extensions for betting, bingo and gaming machine management networks run until 31 December 2026. Further extensions would require appropriate formal approval.

What does the Netherlands experience show about gambling taxes?
The Netherlands recorded gambling-tax receipts below its 2025 budget estimate following a tax-rate increase. The experience highlights how changes in operator activity and consumer behaviour can influence actual government revenue.