Pressure mounts on MEF to settle terms of Italian gambling land-based reforms

The Ministry of Finance (MEF) of Italy is being pressed to settle on terms to amend and modernise laws governing land-based gambling venues.

The mandate forms part of the “Reorganisation of Gambling Decree”, authorised in 2023 by Prime Minister Giorgia Meloni, who sanctioned the first regulatory review of Italian gambling since 2011.

Last year, the government began negotiations with the governments of Italy’s 20 administrative regions on federal rules and standards that will apply to the operation of land-based gambling venues and franchises in local communities.

MEF to handle tough bargaining 

Forthcoming changes are backed by Conferenza Unificata (CU), the representative body of Italy’s regional administrations. However, regional councillors and presidents have demanded to negotiate individual compensations for administrations to implement the changes.

In previous deliberations, CU members proposed that the government allocate 5% of slot machine revenues to regional governments, who believe that €300m is needed to monitor venues, implement safer gambling practices, and strengthen problem gambling interventions.

The draft decree is currently under review by MEF Deputy Minister Maurizio Leo, a key figure in the government’s regulatory reforms, who in 2024 delivered the reorganisation of Italy’s online gambling regime and licencing framework.

The decree will serve as a starting point for further discussions between national and regional authorities, with the goal of creating a modern regulatory framework that balances control and economic benefit.

Retail gambling remains the most profitable segment of Italy’s gambling market, generating €16.5 billion in Gross Gaming Revenue (GGR) out of a total €21.5 billion in 2024, and contributing €10.2 billion in tax revenue compared to just €1.3 billion from the online sector.

A comprehensive framework for certifying venues has also been detailed, which will directly impact eligibility for the distribution of public gaming rights. Additionally, the decree sets out rules and procedures for future retail concession tenders.

Modernising Italian gambling’s market structure and regulation, the decree proposes limits on the number of betting shops, caps on slot and VLT machines, restrictions on the number of specialised gaming halls, and introduces a regulatory framework for remote (online) slot machines.

Lotto Tender backdrop

The negotiations are taking place as Italy prepares to tender its nine-year Lotto concession contract this year, valued at €4.5 billion.

The deadline for concession submissions passed on 17 March, with IGT Plc and Sisal confirmed as the two competing suitors for the highly sought-after contract. IGT has served as the steward of the Lotto IT concession since 1993 and will bid through a new partnership formed with Novomatic, the Italian Tobacco Federation (FIT), and Allwyn.

Bidding rival, Sisal has operated the SuperEnalotto since 1997, and winning the Lotto IT concession is viewed as a key objective for its parent company Flutter, which aims to cement its position as Italy’s largest gambling group. This ambition supports its aggressive M&A strategy in Italy, having acquired Sisal (2022) and Snaitech (2024) for a combined total of €4.4 billion.

CJEU undermines Bingo orders 

In further developments impacting Italy’s land-based gambling venues, in March, the European Court of Justice (CJEU) ruled that Italy must revise the rules applied to the extension of bingo concession licences.

The Court sided with appeals filed by Italian bingo franchises against Italy’s Customs and Monopolies Agency (ADM), challenging the technical conditions and operating criteria applied for licence renewals.

Italy’s bingo operators argued that the ADM granted extensions to existing concessions without conducting a competitive tender process, thereby violating EU principles of fairness and equal treatment in business contracts.

Siding with the bingo franchises, the CJEU determined the ADM extensions as non-compliant, in which the agency must provide a new framework for concessions, with equal treatment of competitors and no market distortions.

As negotiations continue, the government is under pressure to finalise the framework ahead of the legislative review. Once consensus is achieved, the decree will be presented to the Council of Ministers, followed by an agreement with regional authorities and a final review by parliamentary committees.

Stakeholders across the industry are closely monitoring the process, anticipating sweeping changes to Italy’s land-based gambling sector.