Italy’s government is examining proposals to raise between €400 million and €500 million from the regulated gambling industry as it prepares its 2027 budget. The measures could include extending existing retail gambling licences, launching a new scratch-card concession tender and expanding national lottery draws.
The Ministry of Economy and Finance (MEF) has yet to include the proposals in the draft Budget Law, with final decisions expected as Prime Minister Giorgia Meloni’s government prepares to present its fiscal plans in October 2026.
The largest potential source of additional revenue is a three-year extension of land-based gambling concessions, which are scheduled to expire at the end of 2026. Extending these licences until December 2029 could provide the Treasury with an estimated €200 million to €250 million annually while the government works on a permanent licensing framework.
Retail Gambling Reform Remains Unresolved
The proposed extension follows the collapse of negotiations between the national government and regional authorities over the restructuring of Italy’s retail gambling market.
In August, Meloni instructed the MEF to end discussions with the Conference of Regions and Autonomous Provinces after nearly three years of negotiations failed to produce an agreement.
The mandate established under Italy’s Tax Delegation Law expired on 29 August without a settlement on the future distribution and regulation of betting shops, gaming halls and gambling machines.
As a result, the planned retail reform has been removed from the government’s 2027 legislative agenda. The cancellation of the associated concession tenders is expected to deprive the Treasury of approximately €1.5 billion in anticipated revenue.
Under the existing licensing arrangements, operators pay annual concession fees of €120 per amusement-with-prizes machine and €4,000 per video lottery terminal. Betting agencies are charged €9,500, while betting corners pay €5,700. Bingo operators pay €2,800 per hall each month.
Maintaining these arrangements until 2029 would preserve licensing revenue while allowing the MEF to evaluate updated gaming-machine requirements, resume negotiations with regional authorities and prepare future concession tenders.
However, another temporary extension would leave operators without the long-term regulatory certainty they had expected from the retail market overhaul.
Scratch-Card Tender and Additional Lottery Draws Under Consideration
The government is also examining the next concession for Italy’s scratch-card market, currently operated by Brightstar Lottery under a licence scheduled to expire on 30 September 2028.
The MEF is reportedly considering a tender with a starting price of approximately €1 billion while retaining the existing single-operator concession model.
The proposal follows Italy’s recent Lotto concession process, which generated more than €2.2 billion in upfront revenue for the state.
Scratch cards represent another significant revenue source. Annual sales of approximately €8 billion generate close to €500 million for the concessionaire through its 6% premium.
Nevertheless, a new scratch-card tender would be unlikely to generate immediate revenue for the 2027 budget. The preparation and award process means the Treasury is not expected to receive the first two payment instalments before 2028.
Other measures being examined include introducing a digital Lotto receipt, potentially generating €15 million, and adding an extra Lotto and SuperEnalotto draw, which could contribute approximately €50 million in annual state revenue.
Operators Face Further Licensing Uncertainty
The government’s inability to finalise the retail reform has complicated financial planning for gambling companies awaiting a new generation of long-term concessions.
Lottomatica CEO Guglielmo Angelozzi previously informed investors that the prolonged negotiations had affected the company’s long-term financial planning.
Although Italy has completed the online gambling component of its regulatory overhaul through a new licensing regime, the land-based sector remains governed by fragmented regional and municipal requirements.
The government is not expected to restart the broader retail reform process in 2027, making another temporary concession extension a potential solution for maintaining state revenue.
Operators would consequently face the prospect of renewing their existing licences for three years without receiving the permanent regulatory framework anticipated under the original reform.
All revenue proposals remain provisional and could be modified or excluded before the government presents its 2027 Budget Law in October.