ADM tracks lower Italian gambling tax takings for 2024

ADM – Italy’s Customs and Monopolies Agency, has recorded a lower tax take from Italian gambling revenues in 2024.

Publishing its latest ‘Statistical Bulletin‘, ADM revealed that it had collected tax revenue of €8.05bn from Italian gambling licences to date in 2024 (period ending 30 September).

The represents a 6% decrease compared to €8.2bn collected during the same period in 2023. For the entirety of 2023, ADM collected €11.62bn in gambling taxes. As such, 2024 stands to be the first time the ADM records a decrease in tax takings (excluding 2020 due to COVID-19 impacts).

The bulletin highlighted a significant decline in Q3 2024, where gambling tax takings dropped by 16% to €2.22bn, compared to €3.3bn in Q3 2023. The reduction was tied to a decrease in net gambling expenditure (‘spesa’), which fell by 26% year-on-year, from €5.9bn in Q3 2023 to €4.35bn in Q3 2024.

While gambling revenues experienced a downturn, the tobacco sector demonstrated resilience, generating €4.18bn in Q3 2024, an increase of 5.77% compared to the previous year.

Within the gambling sector, gaming machines remained the dominant contributor, accounting for €910m (41%) of tax revenue, generated from net expenditure of €1.26bn.

Additional contributions came from number games and lotteries, which provided €870m (39.08%), betting with €180m (8.17%), and other games contributing €260m (11.64%).

At the close of 2024, ADM launched its new licensing scheme for online gambling concessions as of 18 November.

The scheme represents the overhaul of Italian online gambling since its initial regulation in 2011. Licences will have a duration of nine years, costing €7m each, with an additional annual fee of 3% on gross gaming revenue (GGR), excluding taxes and winnings.

The ADM has allowed existing licences to be extended for one year, until 31 December 2024, in accordance with Budget 2024 provisions.

New rules will restrict operators to “one app per gambling product type and one website,” with strict prohibitions and penalties imposed on the use of skin websites promoting branded products.

ADM anticipates approximately 50 operators applying for new licences, generating €350m from concession fees and €100m annually from fixed licence fees.