Italy’s Gambling Sector Could Face €700 Million Budget Contribution
Highlights
- Italy’s gambling industry could contribute approximately €700 million towards the government’s 2027 budget through lottery commissions and online gaming.
- The proposed contribution could shift part of the financial burden away from land-based retail gambling operators.
Italy’s gambling budget contribution could reach approximately €700 million in 2027, driven by lottery commissions and online gaming revenues. The proposed measure could shift part of the financial burden away from land-based gambling operators.
The proposed arrangement could provide some relief to land-based retail operators, who had previously faced uncertainty over potential increases in gambling taxes and concession costs.
However, the reported breakdown remains subject to confirmation, and the final budget provisions could differ.
The €700 million figure is also a rounded estimate. Italy’s draft budgetary plan submitted to the European Union identifies a gambling contribution of €718 million in both 2027 and 2028, followed by €478 million in 2029. This represents approximately €1.9 billion over three years.
The reported approach also creates questions for lottery operators. The Lotto concession was awarded in 2025 to the LottoItalia consortium, led by IGT, for nine years under a fixed 6% aggio arrangement.
Online gambling operators could also face additional financial pressure. Companies operating under Italy’s licensing framework already pay €7 million for licences and an annual concession fee equivalent to 3% of net margin.
They must also comply with updated technical certification requirements by 15 February 2027.
Meanwhile, land-based operators will continue to face concession-related expenses, as licences covering gaming machines, retail betting and bingo expire on 31 December 2026. The existing extension arrangement generates approximately €232.76 million annually.
The final budget decision will determine how the contribution is distributed across the industry. Gambling operators will monitor the government’s announcement to assess the potential impact on profitability, investment, and future market operations.
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