Agenzia delle Entrate (ADE), the tax and revenue office of Italy, has closed the accounts 2025 State Budget, providing a ‘favourable opinion’ of gambling taxes for 2026 accounts.
Italian gambling licences (non-lottery) in total generated €6.66bn (£5.65bn) in taxes and duties during 2025 – a figure that represents around 1% of the Italian government’s total tax taking of €668bn.
Of this, €346bn was generated from income taxes vs €320bn generated from business (VAT, excise duties).
2025 accounts reveal that Italian ‘state concessions’ (lottery, instant win games and machine gaming) generated proceeds of €22.28bn taken by the Ministry of Finance (MEF) to fund cultural, civic and sports programmes.
Signing of accounts, the tax office revised its 2026 expectations for gambling income upwards, forecasting an additional €807m in industry-related receipts as a budget adjustment for 2026.
The upwards projections reflects significant changes to the Italian online gambling market, launching its new licensing regime as of November 2025.
The relaunch of Italy’s online gambling market saw 52 online concessions granted by the ADM, that will contribute projected income of €365m.
Marginal tax increases were approved by Budget Law of 2025, as Gross Gaming Revenue (GGR) tax on online sports betting and virtual betting increased from 24% to 24.5%.
Online casino, poker and bingo taxation rose from 25% to 25.5%. Retail sports betting taxation increased from 20% to 20.5%, with virtual betting rising from 22% to 24.5%.
The tax office estimates that the combined measures would deliver more than €500m in additional annual tax revenue.
The tax measures have so far supported resilient public finances, although more recent Ministry of Economy and Finance data suggests revenue growth has begun to moderate.
Between January and April 2026, gambling tax receipts totalled €2.52bn, representing a 7.8% decline in comparison to 2025 figures.
The decline is explained by lower tax income from gaming machines in land-based venues and the halfing of concession in the Italian sports betting sector following regime change.
Meloni Movements
The second half of 2026 sees Italy enter a further transformative period for its gambling sector, as the Melonie government moves to sign-off key decrees before the end of its legislative timetable.
For land-based gambling, MEF Deputy Minister Maurizio Leo is expected to conclude negotiations with Italy’s regional authorities on the final terms of the Reorganisation of Land-based Gambling Decree, paving the way for a unified licensing framework for retail gambling.
Terms have been settled on the new licensing structure and a unified framework for gambling venues across Italy’s 20 regions. However, the Ministry of Economy and the Meloni government have yet to agree compensation arrangements with regional authorities, owing to existing retail concession agreements and concerns over lost income.
Elsewhere, Sports Minister Andrea Abodi is preparing to present the government’s long-awaited media and advertising bill for gambling. The legislation will establish the legal framework to repeal and replace the 2018 Dignity Decree, which introduced a blanket ban on gambling advertising.
The proposal has been delayed following the election of a new President of the Italian Football Federation (FIGC). Elected in June, Giovanni Malagò has backed plans to introduce a 2% levy on football betting revenue to finance the revitalisation of Italian football, funding grassroots programmes, stadium redevelopment, training facilities and youth development.
With the final terms still to be agreed, Prime Minister Giorgia Meloni has put Minister Abodi and the MEF under pressure to deliver both bills by the end of August, ensuring they can be incorporated into the 2026 Budget.
The timetable is politically significant, as the government is seeking to complete the reforms before Italy enters the 2027 election cycle.
