Italy’s tax authorities have increased expectations for gambling-related revenue in 2026, despite a weaker start to the year, citing the long-term impact of sweeping regulatory reforms and the launch of the country’s new online licensing framework.
According to the latest budget adjustment published by the Agenzia delle Entrate (ADE), Italy now expects gambling taxes to generate an additional €807 million in state revenue during 2026 compared with earlier forecasts. The revision follows the completion of the government’s 2025 public accounts and reflects confidence that structural changes to the sector will strengthen tax receipts over time.
Non-lottery gambling activities generated €6.66 billion in taxes and duties during 2025, accounting for roughly 1% of Italy’s overall tax income of €668 billion. At the same time, state-controlled concessions—including lotteries, instant-win games and gaming machines—delivered €22.28 billion to the Ministry of Economy and Finance, helping finance public programmes in areas such as culture, sport and civic initiatives.
A key driver behind the revised outlook is Italy’s overhauled online gambling licensing regime, which officially launched in November 2025. The Agenzia delle Dogane e dei Monopoli (ADM) awarded 52 new online licences, a move expected to contribute around €365 million in additional public revenue.
The government has also introduced modest increases to gambling taxation. Gross Gaming Revenue (GGR) tax on online sports betting and virtual betting has risen, while online casino, poker and bingo operators are also subject to slightly higher tax rates. Retail betting taxes have likewise been increased, with officials estimating that the combined measures could generate more than €500 million annually.
However, short-term performance has been less encouraging. Ministry of Economy and Finance figures show gambling tax receipts reached €2.52 billion between January and April 2026, representing a 7.8% year-on-year decline. Officials attribute the slowdown primarily to lower revenues from land-based gaming machines and temporary disruption in the sports betting market as operators transitioned to the new licensing system.
Italy’s gambling sector is also awaiting further legislative changes before the end of the year. Deputy Economy Minister Maurizio Leo is working to finalise a nationwide framework for land-based gambling licences by reaching an agreement with regional authorities, while Sports Minister Andrea Abodi is preparing legislation that would replace the 2018 Dignity Decree, which imposed a broad ban on gambling advertising.
Alongside those reforms, lawmakers continue to examine a proposal for a 2% levy on football betting revenue, with proceeds earmarked for grassroots football, stadium infrastructure, youth development and responsible gambling initiatives. The measure remains under political discussion as part of the government’s broader overhaul of the gambling and sports sectors.
Prime Minister Giorgia Meloni’s government is aiming to complete these reforms before Italy enters the run-up to the 2027 general election, positioning the gambling industry as an increasingly important contributor to both public finances and future sports investment.