Italy considers gambling revenue measures for 2027 budget

Italy is considering a series of gambling-related measures that could generate between €400 million and €500 million for the country’s 2027 budget, following the government’s decision to abandon its long-running attempt to reorganise the retail gambling sector.

Prime Minister Giorgia Meloni has asked the Ministry of Economy and Finance (MEF) to assess possible revenue measures for the regulated gambling market. The proposals have not yet been formally included in the draft Budget Law, which is expected to be presented in October.

One of the main options being examined is a three-year extension of existing retail gambling concessions. The concessions are currently scheduled to expire at the end of 2026, but the government is considering extending them through the end of 2029. The measure could provide the Treasury with between €200 million and €250 million a year over the three-year period.

Retail gambling reform put on hold

The revenue measures are being considered after Meloni’s government ended negotiations with the Conference of Regions and Autonomous Provinces in August. The talks, which had continued for almost three years, were intended to establish a new framework for Italy’s retail gambling network.

The mandate provided under the Tax Delegation Law expired on August 29, an agreement between the central government and regional authorities on the future distribution of betting shops, gaming halls and gaming machines. As a result, the planned retail reform was removed from the government’s 2027 legislative programme.

The failure to proceed with the planned tenders is estimated to leave the state without around €1.5 billion in expected proceeds. Extending the existing concessions to 2029 would provide an alternative source of revenue while allowing the government additional time to work on gaming-machine requirements, discussions with local authorities and preparations for future tenders.

Under the current arrangements, concessionaires pay €120 per year for each amusement-with-prizes machine and €4,000 for every video lottery terminal. Betting agencies pay €9,500 annually, while betting corners pay €5,700. Bingo operators pay €2,800 per hall each month.

Scratch cards could bring €1 billion upfronts

The government is also considering the next tender for Italy’s scratch-card concession. The market is currently operated by Brightstar Lottery under a licence that runs until September 30, 2028.

MEF is reportedly considering setting the starting price for the new concession at approximately €1 billion. The tender is expected to maintain the existing single-concessionaire structure.

The government’s recent Lotto concession process, which brought in more than €2.2 billion in upfront revenue, has provided a reference point for the possible scratch-card tender.

Scratch cards already generate substantial revenue for the state. Annual sales are approximately €8 billion, with the concessionaire’s 6% premium producing close to €500 million a year.

However, the scratch-card tender would not make a significant contribution to the 2027 budget because the first payments are not expected to reach the Treasury until 2028.

Other measures under consideration include a digital Lotto receipt, which could generate an estimated €15 million, and an additional Lotto and SuperEnalotto draw, potentially bringing in approximately €50 million a year.

The proposals remain under review and could be changed before the government submits the Budget Law in October.

Gambling operators await clarity

The uncertainty surrounding the retail reform has also left gambling operators waiting for greater clarity over the future licensing framework. Companies had expected the government to establish the terms for a new generation of longer-term concessions.

Lottomatica chief executive Guglielmo Angelozzi has previously told investors that the prolonged negotiations had complicated the company’s long-term financial planning. It remains uncertain whether operators will accept another three-year extension of the existing concessions or continue to seek a longer-term framework.

Italy has already introduced a new licensing regime for the online gambling market. The land-based sector, however, remains without a final agreement on its future structure, leaving the government to consider a temporary extension of existing concessions while wider reform remains unresolved.