Italy Targets €1bn Gambling Tax for 2027 Budget Settlement

The Italian government is setting a rigorous fiscal course for the coming years. The Ministry of Finance and Economy (MEF) has identified the gambling sector as a pivotal contributor to the national treasury. A total of one billion euros is projected to be raised from this industry alone to support the 2027 Budget Law settlement. Prime Minister Giorgia Meloni is under significant pressure as Italy enters a new election cycle while simultaneously needing to meet the stringent fiscal requirements set by the European Commission. The proposed measures affect both the online market and traditional lottery operations, potentially reshaping the market structure in Southern Europe.

This is not merely about simple tax hikes but a profound reform of the entire sector. The Finance Ministry plans to introduce new technical standards and auditing procedures to better control transparency and cash flows within online gambling operators. In particular, the way winnings and withdrawals are accounted for will be subject to stricter scrutiny. This follows a new licensing regime that came into effect in November 2025, requiring an annual fee of seven million euros for online concessions. The government is making it clear that the gambling industry must play its part in addressing the national financial situation, as spending commitments for energy and defense continue to rise.

Numbers and facts

The financial volume of the planned measures is substantial. The MEF targets a sum of one billion euros to be generated between 2027 and 2028. This is part of a larger package through which the government aims to secure between seven and eight billion euros from various economic sectors. Alongside gambling operators, banks, insurance companies, and energy firms are in the spotlight. A decisive factor could be the early tender of the concession for scratchcards and instant-win games. The current lottery concession, held by the Lotterie Nazionali joint venture (comprising Brightstar Lottery, Scientific Games, Arianna, and Allwyn), is technically due to expire in 2028. The Ministry is now considering bringing this forward to 2027 to secure an upfront payment of approximately one billion euros.

"Everyone who can, will contribute." - Giancarlo Giorgetti, Italy’s Minister of Economy and Finance

This clear statement from Minister Giorgetti emphasizes the government's resolve. Despite the "clouds gathering on the horizon," as he describes the economic situation, the goal of a 29-billion-euro budget deviation over two years for defense and energy remains. Negotiations with Brussels over budget flexibility will determine the final scope, but the burden on gambling operators seems certain.

Background

The political dimension of this decision should not be underestimated. Giorgia Meloni’s Fratelli d’Italia party seeks to strengthen its standing within the conservative coalition. A stable budget is a prerequisite for this. The Customs and Monopolies Agency (ADM) is currently preparing the technical details for the new audits. The focus is primarily on analyzing the impact of audits on online player accounts. Operators must prepare for higher charges for extending existing concessions. While final rates for the new levies have not yet been confirmed, the timetable is set: the budget bill is expected to reach the Chamber of Deputies around October 28. It will then be clear whether the planned billions will be raised through new taxes or primarily through concession charges.

Why it matters for German players

For German players, such developments in other EU countries often have indirect consequences. Italy is traditionally seen as a pioneer in regulation and taxation, often serving as a blueprint for other European supervisory authorities. While Germany’s Interstate Treaty on Gambling 2021 (GlüStV 2021) already imposes very strict rules, such as the 1,000 euro monthly deposit limit and the one euro per spin limit for slots, the Italian example shows that governments increasingly view gambling as a reliable source of revenue for budget consolidation. German players active with operators licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) benefit from the safety of the LUGAS system. However, if tax burdens rise across Europe, operators might be tempted to lower payout ratios or reduce bonus offers to compensate.

What it means for GGL-licensed casinos

Companies licensed in both Italy and Germany now face double pressure. The high cost of the Italian license at seven million euros annually, plus the planned special levies, significantly thins margins. For the German market, this means competition between legal GGL casinos and the black market will be further intensified. If legal operators are burdened by high taxes in multiple EU countries, it becomes harder for them to defend attractive odds against unlicensed competitors from Curacao or the MGA zone. The GGL must therefore ensure that the regulatory burden in Germany does not become so high that players migrate to the unregulated space, where player protection and tax honesty play no role.