Italy’s 2027 Budget Takes €700m From Gambling, Targeting Land-Based Slots and Halls

Ministers Approve €26bn Package

Prime Minister Giorgia Meloni confirmed on 28 October that the Council of Ministers approved Italy’s draft 2027 budget, which includes a €700 million contribution from the gambling sector to help fund a broader €26 billion fiscal package.

Meloni stated, “Dal settore dei giochi altri 700 milioni di euro per finanziare la manovra,” indicating that energy companies are also expected to provide a contribution of similar size. The prime minister did not specify which parts of the gambling industry would bear the cost, and the specific tax and concession measures were not officially published at the time of approval.

Leaked Draft Targets Land-Based Operators

On 29 October, the industry association Jamma reported that a leaked draft of the budget details how the €700 million target would be met. The document proposes extending land-based slot, betting, and bingo concessions to 31 December 2029. This extension is valued at approximately €305 million in 2027.

The leaked draft also outlines significant increases in machine levies. The PREU levy on AWP slot machines would rise from 24% to 25% of stakes, while the VLT rate would increase from 8.6% to 9.6%. According to Jamma, these quantified gaming measures are projected to raise about €770 million in 2027. The draft includes no new levies on online gambling; the financial burden is placed on venue operators, machine concessionaires, and land-based licence holders.

The Gratta e Vinci scratchcard concession would also be extended in exchange for an upfront payment. The government’s draft budgetary plan forecasts gambling revenue of €718 million in both 2027 and 2028, dropping to €478 million in 2029, for a total of nearly €2 billion over the three-year period.

Industry Groups Warn of Job Cuts

EGP-FIPE, representing the sector, issued a warning on 29 October that the proposed increase in machine levies would render at least 20% of specialist gaming halls unprofitable. The association stated that thousands of jobs are at risk if the measures proceed as drafted.

This reaction comes against a backdrop of strong market performance. Italy’s total gaming turnover reached €165.33 billion in 2025, a 5% increase from the previous year. Gross gaming spend grew by 1.36% to €21.869 billion. The state’s tax take from gambling remained stable, decreasing slightly from €11.6 billion in 2024 to €11.5 billion in 2025.

Growth has been driven by digital channels, with virtual betting revenue increasing by 23.14% and online casino and cash games revenue rising by 17.74% in 2025. Despite this digital growth, the 2027 budget measures focus exclusively on the land-based segment, creating a disparity between the online and physical markets.

Parliamentary Review Ahead

The bill must now be examined and approved by the Chamber of Deputies and the Senate by the end of the year. Parliament retains the power to amend the proposed tax rates and concession terms before the budget becomes law. The final figures may differ from the leaked draft as negotiations continue between the government and legislative branches.