New Italian 2027 budget bill proposes wider gaming tax and licence changes

Italy's proposed 2027 budget bill introduces a substantial package of measures targeting the country's land-based gaming industry. The proposals include higher taxes on amusement-with-prize machines and video lottery terminals, increased betting and prize limits for certain slot machines and extensions to several existing gambling concessions until the end of 2029.

The draft legislation also introduces a licensing framework for esports and LAN gaming venues while establishing additional financial obligations for operators across several traditional gaming sectors. At the same time, the government has not proposed comparable tax increases for the online gambling market.

The measures form part of the government's wider budget strategy for 2027. However, they remain proposals subject to parliamentary examination and potential amendments. Their final implementation will depend on the legislative process and approval of the budget.

Higher PREU rates proposed for AWP and VLT machines

One of the most significant elements of the proposed legislation concerns the Prelievo Erariale Unico (PREU), the principal tax applied to gaming machines operating in Italy's regulated land-based market.

Under the draft provisions, the PREU rate applied to amusement-with-prize machines (AWP) would increase from 24% to 25% from 1 January 2027. The corresponding rate for video lottery terminals (VLT) would rise from 8.6% to 9.6%.

Both changes represent an increase of one percentage point. Although the difference may appear limited in percentage terms, the financial implications could be considerable for operators managing large networks of gaming machines.

The PREU is calculated on the amounts wagered rather than simply on an operator's net profit. Consequently, changes to the applicable rates can influence the financial structure of gaming operations and the commercial arrangements between different participants in the supply chain.

The draft also provides for a reduced PREU rate of 20% for qualifying AWP machines programmed to return at least 70% of the amounts wagered as prizes. This provision is intended to accommodate machines meeting the specified payout requirement during the transition towards a different technical operating framework.

The reduced rate would apply from 1 January 2027 under the conditions described in the proposal. It is therefore important for operators to assess which machines could qualify and what technical requirements would have to be satisfied.

Proposed changes to slot stakes and maximum prizes

Alongside the higher PREU rates, the government is proposing changes to the permitted betting and prize limits for AWP machines.

The maximum stake for an individual game would increase from €1 to €2. Meanwhile, the maximum prize would rise from €100 to €200.

These adjustments would double both the permitted individual stake and the maximum prize. However, the proposed changes relate specifically to AWP machines and should not be interpreted as a general increase in the limits applicable to every category of gaming terminal.

The government appears to be combining higher machine taxation with revised operating parameters. The financial effect on individual operators will depend on factors including machine performance, the applicable tax rate and the extent to which their equipment meets the conditions for the reduced PREU rate.

The relationship between taxation and operating limits will therefore remain an important consideration during the parliamentary debate.

Land-based gaming concessions extended until 2029

Another central component of the budget proposal concerns the extension of existing gambling concessions.

Several authorisations covering betting activities, gaming machine networks and bingo operations are scheduled to expire on 31 December 2026. The proposed legislation would extend the relevant arrangements until 31 December 2029.

The government is presenting the extension as a transitional measure intended to maintain continuity in the regulated market while broader reforms to Italy's land-based gaming distribution system are being developed.

However, the extension would come with financial conditions for concessionaires.

Betting operators would face annual charges of €14,250 for each operating right associated with a retail location where the sale of public gaming products represents the principal business activity.

For locations where gaming products are sold as a secondary activity, the proposed annual charge would be €8,550 for each operating right.

These amounts would apply throughout the extension period. The proposed payment arrangements would divide the annual obligations into two instalments, with payments scheduled for April and October.

The draft also establishes additional payments for operators responsible for AWP and VLT networks.

For AWP machines, the proposed extension charge would amount to €150 for each relevant operating authorisation held at the reference date of 30 November 2026. For VLT operations, the corresponding amount would be €7,500 for each qualifying installation right.

The payments would cover the entire three-year extension period and would be distributed across nine instalments.

These provisions could have different financial consequences depending on the size and composition of each concessionaire's network. Operators with substantial machine portfolios would need to consider the additional costs when evaluating the economic impact of the proposed extension.

Bingo concessions face turnover-based charges

Bingo operators would also be affected by the proposed extension framework.

Under the draft, existing bingo concessions would remain valid until 31 December 2029. However, concessionaires would have to pay monthly charges determined by the turnover generated by their respective gaming venues.

The proposed amounts would range from €6,500 for the lowest turnover category to €14,500 for venues generating more than €17m annually.

The calculation would use 81 turnover brackets. The monthly amount would increase progressively as the value of bingo cards sold by a venue rises.

The legislation also addresses financial adjustments relating to earlier concession extensions. It proposes recalculating certain historical charges and establishing arrangements for dealing with outstanding amounts.

Where operators have paid more than the revised amount, the excess could be credited against subsequent payments. Amounts owed could be paid through instalments subject to the conditions set out in the legislation.

This part of the package could have implications beyond the immediate 2027 to 2029 extension period because it also addresses financial obligations associated with previous arrangements.

Gratta e Vinci concession receives a further extension

The proposed budget also includes provisions concerning Italy's instant lottery products, commonly known as Gratta e Vinci.

The existing concession is scheduled to expire on 30 September 2028. Under the proposal, it would be extended until 31 December 2029.

In return, the concessionaire would be required to pay €188m to the state.

The proposed payment would be divided into two equal instalments of €94m, with deadlines scheduled for 31 March and 30 September 2027.

The amount reflects the government's assessment of the concession's value and the conditions under which the existing operator holds the rights.

The measure represents a separate revenue component within the broader gaming package. It should not be confused with the additional PREU revenue expected from AWP and VLT taxation.

Additional weekly draws proposed for Lotto and SuperEnalotto

The legislation also proposes changes to Italy's national number-based lottery products.

Under the draft, Lotto and SuperEnalotto would receive an additional weekly draw scheduled for Wednesday. This would establish a fifth weekly drawing opportunity for the relevant games.

The proposed change would require further administrative arrangements before implementation. The authorities would need to establish the operating conditions and coordinate the technical requirements for the additional draw.

The government's financial assessment also anticipates additional public revenue from the change.

However, the projected contribution depends on assumptions about player participation and the additional activity generated by the new drawing schedule.

New licensing requirements for esports and LAN gaming venues

A further development concerns esports facilities and LAN gaming venues.

The draft budget proposes a formal authorisation system for establishments offering certain skill-based digital games, including sports and strategy titles that do not involve cash gambling prizes.

The proposed framework would place these facilities under the supervision of the Customs and Monopolies Agency (ADM).

Operators would need to obtain the relevant authorisations before establishing or continuing the activities covered by the proposed rules. The authorisations would have a two-year duration.

The proposed financial requirements include €200 for each gaming device, €1,000 for each dedicated venue, €2,000 for each game offered and €10,000 for each online platform used.

The legislation would also establish requirements covering the technical characteristics of gaming equipment, online platforms and the facilities themselves.

Game classification would be another important consideration. The proposed rules refer to age recommendations and content classifications under the Pan European Game Information (PEGI) system or an equivalent framework.

Importantly, these facilities would remain separate from conventional gambling establishments. The proposed framework would prohibit gambling and betting activities within the licensed premises.

The provisions could create a clearer regulatory structure for esports and LAN operators while introducing additional administrative and financial responsibilities.

Government estimates significant additional gaming revenue

The proposed measures form part of a wider effort to increase public revenue from Italy's regulated gaming industry.

According to the financial estimates accompanying the draft legislation, the higher PREU rates and related machine provisions could generate approximately €334m in additional revenue in 2027. The projected contribution increases to €365m in 2028 and €456m in 2029.

These figures are estimates rather than guaranteed outcomes. They rely partly on assumptions about the performance of gaming machines and the expected development of the market.

The proposed concession extensions are another important source of projected revenue. The financial assessment estimates approximately €114.5m annually from betting concessions and €166.5m annually from the AWP and VLT network extensions.

Together, these provisions would account for approximately €281m annually during the extension period.

The €188m Gratta e Vinci payment represents another significant component. Additional projected receipts would come from bingo arrangements, the proposed fifth weekly lottery draw and the new framework for LAN facilities.

The financial documentation also includes a proposed settlement mechanism addressing outstanding disputes connected with the one-off levy introduced in 2015. This measure is estimated to generate approximately €71.62m through the proposed resolution of the relevant financial positions.

Taken together, the technical assessment places the projected 2027 revenue associated with the broader gaming package at approximately €952.13m. This figure combines different categories of revenue and payments. It should not be interpreted as the amount generated solely by higher gaming taxes.

Online gaming taxation remains unchanged in the draft

Despite the proposed changes affecting traditional gaming operations, the government has not included a corresponding increase in online gambling tax rates in the current budget proposal.

This distinction is particularly relevant because Italy introduced a revised concession framework for online gambling in 2025.

The current draft instead concentrates its principal fiscal adjustments on physical gaming networks, betting locations, bingo operations and other land-based activities.

The absence of a new online tax increase means that digital operators would not face the same specific PREU changes proposed for AWP and VLT machines under this package.

The different treatment of retail and online gaming could become an important issue in discussions about the future structure of Italy's regulated gambling market.

It also creates a distinction between operators whose businesses depend heavily on physical locations and those concentrating on digital distribution.

As.Tro reviews the potential impact on land-based operators

The proposed measures have already attracted attention from industry representatives.

As.Tro, the Italian association representing legal gaming operators, announced an extraordinary meeting of its technical committee for 2 November 2026.

The meeting was intended to examine the proposed measures affecting amusement-with-prize machines and the related changes to the PREU levy. The association also indicated that the discussions would consider possible technical, operational and economic implications for businesses operating in the sector.

This initiative reflects the importance of the proposed changes for the land-based gaming supply chain.

However, the final position of individual operators will depend on the legislation ultimately adopted and the practical requirements established by the relevant authorities.

The parliamentary process will provide an opportunity for industry representatives and other interested parties to consider the financial and operational consequences of the proposals.

Conclusion

Italy's proposed 2027 budget bill represents an important development for the country's regulated gaming industry. Its combination of increased machine taxation, revised operating limits and extended concessions could reshape the financial responsibilities of businesses operating across the traditional gambling market.

The measures are particularly relevant for AWP and VLT operators because the proposed PREU increases would coincide with additional concession payments and changes to permitted machine parameters. Betting and bingo operators would also face new financial conditions as their existing authorisations move into an extended operating period.

At the same time, the proposed regulatory framework for esports and LAN venues demonstrates that the government's approach extends beyond conventional gambling products. It seeks to establish clearer authorisation requirements for activities that occupy a different position within the wider gaming and entertainment market.

The decision not to introduce a comparable online gambling tax increase also creates a notable distinction between the physical and digital sectors. Whether this difference remains in the final legislation will be an important question for the industry.

Ultimately, the proposed measures should be assessed as a package rather than as isolated tax adjustments. Their combined effect will depend on parliamentary decisions, administrative implementation and the ability of operators to adapt to the resulting financial and regulatory conditions.

With approval of the 2027 budget still required, the coming legislative discussions will determine whether the proposals retain their current structure or undergo substantial changes. For Italy's gaming industry, the final outcome could influence investment decisions, concession planning and the long-term organisation of the land-based market through 2029.

FAQs

What does Italy's 2027 budget bill propose for the gaming industry?
The proposed legislation includes higher PREU rates on AWP and VLT machines, revised AWP betting and prize limits, extensions of several land-based concessions until 2029 and new authorisation requirements for esports and LAN gaming venues.

How much would the PREU rate increase for AWP machines?
The proposed PREU rate for AWP machines would increase from 24% to 25% from 1 January 2027. Qualifying machines with a minimum 70% payout would be eligible for a reduced 20% rate under the draft provisions.

What would happen to the tax rate on VLT machines?
The PREU rate applied to VLT machines would increase from 8.6% to 9.6% under the proposed legislation.

Would the maximum slot-machine stake increase in Italy?
Yes. The proposed maximum stake for an individual AWP game would rise from €1 to €2. The maximum prize would also increase from €100 to €200.

How long would Italy's land-based gaming concessions be extended?
The proposed legislation would extend the relevant betting, AWP and VLT network and bingo concessions until 31 December 2029.

What annual charges would betting operators face?
The proposed annual charge would be €14,250 for each operating right at locations where gaming is the principal business activity. Locations where gaming is a secondary activity would face an annual charge of €8,550 per right.

How much would bingo operators pay under the proposed framework?
Monthly charges would range from €6,500 to €14,500 depending on the annual turnover category of each bingo venue.

What is the proposed Gratta e Vinci concession payment?
The proposed extension until 31 December 2029 would require a payment of €188m, divided into two equal instalments scheduled for 2027.

What licensing requirements are proposed for LAN gaming venues?
The draft proposes two-year ADM authorisations with charges of €200 per device, €1,000 per venue, €2,000 per game and €10,000 per online platform. The facilities would not be permitted to conduct gambling or betting activities.

Will Italy increase online gambling taxes in 2027?
The current draft does not propose a comparable increase in online gambling tax rates. Its principal tax adjustments target physical gaming machines and other land-based gambling operations.