Italy Expects €807m Gambling Tax Increase in 2026

Italy Revises 2026 Gambling Tax Forecast Up by €807m – New Licensing and Tax Changes Reshape Market

Key Takeaways

• Italy collected €6.66bn in gambling taxes and duties in 2025, equal to around 1% of total state tax revenue.
• The tax authority expects an additional €807m in gambling-related receipts in 2026.
• Fifty-two new online concessions launched under the November 2025 licensing regime are projected to contribute €365m.
• Tax rates on online and retail betting and gaming increased by 0.5 percentage points under the 2025 Budget Law.
• Gambling tax receipts fell 7.8% year-on-year to €2.52bn between January and April 2026.

Italy’s 2025 Gambling Tax Contribution to the State Budget

Italy’s Agenzia delle Entrate (ADE) has closed the 2025 State Budget accounts and issued a favourable opinion on projected gambling tax income for 2026. According to the final figures, non-lottery gambling licences generated €6.66bn in taxes and duties in 2025.

That amount represents approximately 1% of Italy’s total tax intake of €668bn for the year. Of the overall tax revenue, €346bn came from income taxes and €320bn from business-related sources such as VAT and excise duties.

In addition to non-lottery gambling, Italy’s state concessions – including lottery products, instant win games and machine gaming – generated €22.28bn in proceeds. These funds were allocated by the Ministry of Economy and Finance to support cultural, civic and sports programmes.

The scale of these figures underlines the fiscal relevance of gambling for the Italian state. For operators and users, this level of tax contribution explains why regulatory and fiscal adjustments in the sector are closely linked to broader budget planning.

€807m Upward Revision for 2026 Following Market Changes

When signing off the 2025 accounts, the ADE revised its expectations for 2026 gambling income upward. The tax office now forecasts an additional €807m in industry-related receipts for 2026 as a budget adjustment.

The revision reflects structural changes in the Italian online gambling market. A new licensing regime came into force in November 2025, effectively relaunching the online sector under updated concession terms.

Under this framework, Italy’s Customs and Monopolies Agency granted 52 online concessions. These are projected to generate €365m in income. The relaunch marks a significant shift in the composition of the online market, as the number of concessions in the sports betting segment was halved following the regime change.

For users of online sportsbooks and casinos, this new licensing structure defines which operators are authorised to offer services in Italy and under what fiscal conditions.

Higher GGR Tax Rates Across Online and Retail Segments

The 2025 Budget Law introduced marginal increases in gambling taxation, directly affecting both online and land-based operations.

Gross Gaming Revenue tax on online sports betting and virtual betting rose from 24% to 24.5%. Online casino, poker and bingo taxation increased from 25% to 25.5%. In the retail segment, sports betting taxation moved from 20% to 20.5%, while virtual betting in land-based venues increased from 22% to 24.5%.

The tax office estimates that these combined measures will deliver more than €500m in additional annual tax revenue.

For operators, these higher rates directly affect margins and cost structures. For players, changes in tax burdens can influence product offerings, odds structures or promotional intensity, although the published figures focus strictly on fiscal outcomes.

Early 2026 Revenue Decline Despite Higher Tax Rates

Despite the upward revision for the full year, more recent data from the Ministry of Economy and Finance indicates a slowdown in revenue growth.

Between January and April 2026, gambling tax receipts totalled €2.52bn. This represents a 7.8% decline compared to the same period in 2025.

The decrease is attributed to lower tax income from gaming machines in land-based venues and the halving of concessions in the sports betting sector following the regulatory overhaul. The figures show that structural reforms and tax increases do not automatically translate into immediate revenue growth, particularly during transition periods.

For market participants, this short-term decline highlights the operational impact of licensing resets and shifts in concession numbers.

Pending Land-Based Reform and Advertising Law Changes

Further regulatory changes are expected in the second half of 2026. The government is working to finalise key decrees before the end of its legislative timetable.

For land-based gambling, the Deputy Minister of the Ministry of Economy and Finance is negotiating final terms of the Reorganisation of Land-based Gambling Decree with Italy’s regional authorities. The objective is to introduce a unified licensing framework for retail gambling across all 20 regions.

While the new licensing structure and venue framework have been settled in principle, compensation arrangements for regional authorities remain unresolved. Existing retail concession agreements and concerns about lost income are central to these discussions.

At the same time, the Sports Minister is preparing legislation to replace the 2018 Dignity Decree, which imposed a blanket ban on gambling advertising. The new bill would establish a revised legal framework for media and advertising in the sector.

In parallel, the newly elected President of the Italian Football Federation has backed plans for a 2% levy on football betting revenue. The proposed levy would fund grassroots programmes, stadium redevelopment, training facilities and youth development. Final terms are still under discussion.

The government aims to complete both legislative initiatives before the end of August so they can be incorporated into the 2026 Budget.

Our Assessment

Italy’s latest budget accounts confirm that gambling remains a significant source of public revenue, with €6.66bn collected from non-lottery licences in 2025 and a projected €807m increase for 2026. The new online licensing regime, higher GGR tax rates and ongoing structural reforms are central to these projections. At the same time, early 2026 figures show a temporary revenue decline linked to land-based machine performance and concession changes. Together, these developments indicate an ongoing restructuring of Italy’s gambling framework that directly affects operators, licensing conditions and fiscal contributions to the state.