Italy’s gambling sector could meet its estimated €700 million share of the 2027 budget through lottery commissions and online gaming, a proposal that would shift pressure away from land-based retail operators. The funding plan has not yet been approved by the Italian Cabinet, and the final budget could differ.
The Cabinet was due to meet at noon on 28 October, though the meeting time had repeatedly slipped. The €23.5 billion budget package is expected to rely on around €5 billion from banks and insurers. A planned income tax cut for people earning more than €50,000 has reportedly been dropped.
The contribution remains uncertain
The €700 million figure is rounded. The draft budgetary plan sent to Brussels sets gambling’s contribution at €718 million in both 2027 and 2028, then €478 million in 2029. That would amount to almost €1.9 billion over three years.
The proposed split differs from other scenarios recently discussed. These include a one percentage point increase in PREU, Italy’s levy on gaming machine stakes, and more expensive extensions to gambling concessions. A smaller PREU increase has also faced resistance within the governing majority.
Different costs for each segment
The lottery proposal raises questions about existing contracts. The Lotto concession was awarded again in 2025 to the LottoItalia consortium, led by IGT, for nine years at a fixed 6% aggio. Changing the rate during the concession could be legally difficult. A reduction would also lower the share of lottery takings retained by operators and their retail networks.
Online operators already face substantial costs. Licences under the regime introduced in November 2025 cost €7 million each, in addition to an annual concession fee equal to 3% of net margin. Licensees must certify their systems under new technical rules by 15 February 2027. Italy’s Dignity Decree also continues to prohibit gambling advertising.
Land-based businesses will still face concession costs. Licences for slots, retail betting and bingo expire on 31 December 2026, requiring another paid extension. The current extension raises about €232.76 million annually.
Retail groups have feared taking on a larger share of the budget contribution. Dario Peirone, director general of think tank Istituto Milton Friedman, warned last week that further tax tightening “would spell the final collapse of land-based gambling”.
Italy and the UK are both setting gambling taxes on 28 October. Chancellor John Healey is widely expected to raise machine games duty in his first autumn budget. After Cabinet approval, Italy’s bill will go to parliament; operators will not know how the burden is allocated until the text is published.
