Italy reports €4.52bn in tax revenue from gambling over nine months in 2026

Italy’s gaming sector generated approximately €4.52 billion in tax revenue and duty receipts for the state between January and September 2026, according to the Treasury’s summary account published by the Ragioneria Generale dello Stato. The figures come as the government advances a draft 2027 budget with higher proposed gaming-machine levies and extensions for several land-based concessions.

The €4.522 billion figure represents cash receipts in the Treasury category covering taxes and duties on gaming activities. It differs from broader statistical measures that include additional categories.

Gaming machine levies account for most receipts

The largest contribution came from the state levy on gaming machines, including amusement-with-prize machines and video lottery terminals. Receipts from this category reached approximately €3.586 billion, accounting for around 79.3% of the total recorded under the relevant Treasury heading.

Other components included approximately €485.6 million from the 40% share of the single tax on games of skill and prediction competitions. A further €305.5 million was recorded as proceeds from gaming activities, while around €59 million came from the fixed state duty on prediction competitions.

The breakdown highlights the importance of machine taxation and explains why AWP and VLT levies feature prominently in the 2027 budget proposals.

Tax revenue falls compared with 2025

The €4.522 billion collected during the first nine months of 2026 was below the approximately €4.82 billion recorded over the corresponding period in 2025. On this comparable cash-receipt basis, the decrease was around 6.2%.

The comparison must use consistent accounting categories because separate Ministry of Economy and Finance (MEF) statistics use a broader basis for gaming-related tax assessments.

The latest MEF release also indicated that lower receipts from gaming machines were a major factor behind the wider decline in gaming-related tax revenue. It noted a continuing reduction in machine play and the associated tax contribution from 2024 onwards. Changes in player preferences, including interest in remote gaming products, were identified as possible factors.

Draft 2027 budget proposes higher machine taxes

Italy’s draft 2027 budget includes changes to the single tax levy, known as the PREU, applied to gaming machines. Under the proposal, the rate for AWP machines would rise to 25% of the sums played from 1 January 2027. The rate for VLTs would increase to 9.6%.

A reduced 20% rate is proposed for specified AWP machines programmed to return at least 70% of stakes to players as prizes. The lower rate would apply under the conditions set out in the draft legislation.

The budget text also proposes increasing the maximum stake for an individual AWP game from €1 to €2 and the maximum prize from €100 to €200. These measures form part of a wider package for land-based gaming.

The proposed rates are not yet rules in force. They form part of a bill submitted to the Chamber of Deputies and remain subject to parliamentary consideration. The final wording and implementation timetable will depend on the legislative process.

Land-based concessions could be extended to 2029

The draft budget also addresses the duration of several land-based gambling concessions. It proposes extending sports betting concessions and the concessions for operating telematic networks that manage gaming machines until 31 December 2029.

A separate provision covers bingo concessions due to expire by the end of 2026. These would also be extended to 31 December 2029, with concessionaires required to pay monthly compensation calculated according to the previous year’s bingo-card sales.

The extensions are intended to maintain continuity while Italy prepares a broader reform of land-based public gaming.

Italy remains a major regulated gaming market

The tax figures form only one part of the picture. Data from the Agenzia delle Dogane e dei Monopoli (ADM) for 2025 recorded approximately €165.3 billion in total gaming stakes across land-based and online channels. This is the total amount wagered, not operator revenue or the sector’s direct contribution to GDP.

An analysis by the Italian Observatory on Public Accounts put the figure at around 7.3% of gross domestic product. This is a measure of stakes relative to GDP, not gambling’s direct contribution to national output.

Italy maintains extensive restrictions on gambling advertising and promotional activity under the 2018 Dignity Decree. The rules are also addressed in guidance from communications regulator AGCOM and cover advertising and sponsorships for gambling products. The framework combines a substantial licensed market with strict promotional limits.

Digitain strengthens its focus on Italy

Technology supplier Digitain has appointed Domenico Mazzola as Head of Sales for Italy. Announced on 29 October 2026, the appointment forms part of the company’s plans to develop its position in the country’s regulated iGaming market.

Mazzola brings more than a decade of experience in iGaming technology and commercial development, with a background spanning software development, sales and senior commercial roles. He is expected to focus on building relationships with Italian operators.

The appointment underlines the value of local knowledge in a regulated market. It is a commercial development and does not change Italy’s licensing requirements or the status of individual operator licences.

Conclusion

Italy’s €4.52 billion in gaming-related tax and duty receipts during the first nine months of 2026 underline the sector’s importance to public finances, even as collections declined compared with the same period last year. Gaming machines remained the main source of the recorded receipts, placing the proposed AWP and VLT tax changes at the centre of the industry’s 2027 outlook.

The draft budget reflects an effort to maintain public revenue while providing continuity for parts of the land-based concessions system. Its ultimate effect will depend on the legislation adopted by parliament and on how operators respond to the proposed tax and operating conditions.

Italy’s substantial gaming turnover and Digitain’s appointment of a dedicated sales lead show why the market remains relevant to international industry participants. Commercial prospects will depend on regulatory compliance, local expertise and the ability to adapt to changing tax rules. The figures point to the fiscal priorities likely to shape the market in 2027.

FAQs

How much tax revenue did Italy generate from gambling in the first nine months of 2026?
Italy collected approximately €4.522 billion in taxes and duties on gaming activities between January and September 2026.

How did Italy's gambling tax revenue compare with 2025?
The comparable Treasury cash receipts declined from approximately €4.82 billion in the first nine months of 2025 to €4.522 billion in 2026.

Which gambling sector generated the largest tax contribution?
Gaming machines, including AWP machines and VLTs, generated approximately €3.586 billion in receipts.

What is the proposed PREU rate for AWP machines in 2027?
The draft budget proposes a 25% levy on stakes for AWP machines from 1 January 2027, subject to the legislative approval process.

What tax rate is proposed for VLTs?
The proposed PREU rate for video lottery terminals would increase to 9.6%.

Will some AWP machines benefit from a lower tax rate?
Yes. The draft provides for a reduced 20% rate for specified machines programmed to return at least 70% of stakes to players as prizes.

What changes are proposed for maximum AWP stakes and prizes?
The proposed changes would increase the maximum stake from €1 to €2 and the maximum prize from €100 to €200.

Will Italian land-based gambling concessions be extended?
The draft 2027 budget proposes extending sports betting, gaming-machine network and bingo concessions until 31 December 2029.

How large was Italy's gambling market in 2025?
Official figures recorded approximately €165.3 billion in total gaming stakes across land-based and online channels.

Who is Domenico Mazzola at Digitain?
Domenico Mazzola was appointed Head of Sales for Italy on 29 October 2026 to support the company's commercial development and relationships with Italian operators.