Italy proposes ADM oversight of esports venues
Italy’s proposed 2027 budget would bring LAN gaming venues under the authorization and supervision of the Customs and Monopolies Agency (ADM), introducing taxes and operating requirements for businesses offering networked video games. Article 25 of the bill covers skill-based entertainment without cash winnings. The measure remains a legislative proposal, rather than an obligation already in force.
The framework would apply to dedicated premises offering games through online platforms, including qualifying computers, consoles and simulators. Opening a venue and installing gaming equipment would require ADM authorization, valid for two years. The agency would establish the technical requirements and procedures governing approval, monitoring, suspension and revocation.
The proposed authorization charges include €200 per gaming device, €1,000 per venue, €2,000 for each game offered and €10,000 for each online platform used. Venues would need at least 20 devices or gaming stations. Minors could enter, provided operators restricted them to age-appropriate games, while collecting bets on the premises would be prohibited.
A separate entertainment tax would apply at 8%, using a fixed annual taxable base of €15,000 per device or station, rising to €25,000 for large simulators. As reported by Hardware Upgrade, that would mean annual tax charges of €1,200 and €2,000 respectively, regardless of actual revenue. The publication reported that the proposal concerns commercial gaming premises, rather than people playing on their own equipment at home.
Industry disputes costs and market assumptions
IIDEA, which represents Italy’s video game industry, called on November 6 for Article 25 to be removed entirely and for structured discussions with the sector. The association argues that the proposal imposes a disproportionate regulatory model on video games and esports, which it distinguishes from gambling through their creative content and reliance on player skill.
The association also disputes the scale of the market assumed in the government’s financial projections. IIDEA estimates that Italy has approximately 70 operating LAN venues, with only around 20 meeting the proposed minimum of 20 stations. It places the value of the entire Italian esports sector at €32 million–€35 million in 2026, warning that the projected public revenue exceeds the sector’s current estimated value.
The parliamentary dossier forecasts €55.2 million in entertainment-tax revenue and €10.83 million in authorization contributions in 2028. ADM would also set tournament participation conditions, maximum entry fees and prize limits, with a possible supervisory contribution capped at 8% of participation fees. These powers would extend the framework beyond the physical installation of gaming stations.
IIDEA’s concerns extend to publishers, developers, platforms and tournament organizers, including requirements to retain online activity records for five years. It questions the proposal’s compatibility with European rules and the proportionality of its data-retention obligations. The association wants any future framework developed through a separate legislative process, supported by reliable market data and consultation with the businesses and communities affected.
