Italy Targets $2.13 Billion From Gambling Revenue in 2027-2029 Draft Budget

Italy is considering higher taxes along with changes to lottery commissions and gambling concession fees. Prime Minister Giorgia Meloni's government seeks nearly €1.9 billion ($2.13 billion) from the sector between 2027 and 2029.

The draft budgetary plan submitted to Brussels projects gambling revenue of €718 million ($804.16 million) annually in 2027 and 2028, followed by €478 million ($535.36 million) in 2029. Earlier estimates had ranged from €400 million ($448 million) to €1 billion ($1.12 billion).

According to Yogonet International, the government could raise approximately €700 million ($784 million) through lottery sales commissions known as aggio and online gambling. The proposed mechanism remains unconfirmed.

Revenue Tools Under Consideration

Alternative measures include increasing the PREU levy on gaming machine stakes and introducing more expensive concession extensions. Jamma reported political resistance to a smaller PREU increase. Land-based operators face continued uncertainty after stalled negotiations between the Ministry of Economy and Finance and the Conference of Regional Councils. In August, Meloni ordered an end to two years of talks covering Italy's 20 autonomous regions and 110 municipal councils. The Customs and Monopolies Agency was instructed to extend existing concessions.

Licenses for slot machines, retail betting and bingo expire on December 31, 2026, requiring another paid extension. The current arrangement generates approximately €232.76 million ($260.69 million) annually. Dario Peirone, director general of the Istituto Milton Friedman think tank, warned that further taxation “would spell the final collapse of land-based gambling.”

Risks in Concession and Lottery Changes

Lottery taxation could face contractual complications. The Lotto concession was awarded to the IGT-led LottoItalia consortium in 2025 for nine years at a fixed 6% commission. Changing that rate could present legal challenges and reduce operator and retailer earnings. A tender for the Gratta e Vinci scratch-card concession, expiring in September 2028, remains under consideration alongside a possible paid extension.

Online gambling operators already face increased costs under regulations introduced in November 2025. Individual brand licenses cost €7 million ($7.84 million), alongside an annual concession fee of 3% of net margin. Flutter Entertainment, which operates Sisal, Snai, PokerStars, Tombola and Betfair in Italy, must hold separate licenses for its brands. Operators must certify their systems under updated technical requirements by February 15, 2027. Gambling advertising remains prohibited under Italy's Dignity Decree.

These measures form part of Meloni's fiscal strategy ahead of the 2027 general election. Gambling, finance and energy are expected to support spending and tax reductions of €26 billion ($29.12 billion) in 2027 and €27 billion ($30.24 billion) in 2028. Italy's approach parallels gambling tax changes in Britain, where retail gaming machine taxation rises from 20% to 25%.