Italy’s 2027 Budget Bill Raises Machine Taxes, Doubles Slot Stakes
PREU hikes from 24% to 25% and VLT levy to 9.6%; concessions extended to 2029.
Key Takeaways
- The 2027 Budget Bill raises the PREU on AWP machines from 24% to 25% and the VLT levy from 8.6% to 9.6% effective 1 January 2027.
- Maximum slot stakes increase from €1 to €2 and maximum prizes from €100 to €200, with machines paying 20% if they return at least 70% to players.
- Land-based gambling concessions are extended until the end of 2029 and new annual fees of €14,250 or €8,550 apply to betting shops depending on activity.
- The government projects the gambling measures will generate approximately €952 million in 2027 and close to €2 billion between 2027 and 2029.
- ACADI warned the combined tax and concession costs threaten operator viability; Geronimo Cardia urged preserving the supply chain.
The Italian government has proposed increases to gaming machine levies and extended land-based concessions in the 2027 Budget Bill, with changes scheduled to take effect on 1 January 2027. The certified draft raises the PREU levy on AWP machines from 24% to 25% and lifts the video lottery terminal (VLT) levy from 8.6% to 9.6%, while also doubling maximum slot stakes and prizes.
Key fiscal changes to machines and stakes
The draft legislation increases the single tax levy (PREU) for amusement with prize (AWP) machines by one percentage point to 25% from 1 January 2027. The levy on video lottery terminals will rise to 9.6% from the current 8.6% on the same date. To accompany these tax changes, the bill permits higher-value gameplay by increasing the maximum stake on slot machines from €1 to €2 and raising the maximum prize from €100 to €200. Machines that return at least 70% of stakes as winnings will be eligible for a reduced levy tier of 20%.
The text also establishes a specific licensing framework for esports and LAN gaming venues that host skill-based competitions without cash prizes.
Concession extensions and new fees
The draft prolongs existing land-based gambling concessions to the end of 2029 and introduces structured fees for concession holders. Betting shops face annual fees of €14,250 where gaming is primary or €8,550 where gaming is secondary. The bill also adds permit-based charges for slot and VLT concessionaires and card-sale fees for bingo halls. These measures are intended to be applied across the terrestrial sector, including betting shops and halls that the proposals affect; the government text links those changes directly to concession extensions and new operating fees. Operators and associations have framed the measures as a combined fiscal burden on the land-based supply chain. The article discusses the land-based sector and regulatory measures in more detail on the casino page and frames concession questions on the regulation section.
Revenue projections and composition
Technical reports attached to the Budget Bill estimate that the gambling provisions will yield approximately €952 million in 2027. The largest single contribution is projected to come from the increased PREU levy on gaming machines, forecast at €334 million. Extending land-based gambling concessions is expected to add €281 million, while scratch cards are projected to generate €188 million. An additional €71.62 million could be collected if eligible parties settle the outstanding 2015 levy dispute. Over the period 2027–2029, the reports estimate the combined effect of machine tax hikes and concession prolongations will produce close to €2 billion, a figure that assumes higher stake limits will boost player expenditure.
Industry reaction and parliamentary timetable
The Association of Concessionaires of Entertainment Equipment (ACADI) has warned that the combination of higher equipment taxes and new concession costs will strain operators in a contracting market. ACADI President Geronimo Cardia said:
"We are not asking for discounts, we are asking not to shut down a supply chain that guarantees the state billions in revenue every year." — Geronimo Cardia, ACADI President
Parliamentary hearings in the Chamber of Deputies are scheduled for Thursday, with member amendments due by 17 November and a final legislative approval deadline of 31 December. The certified draft currently before Parliament does not introduce new taxes on online gambling and preserves the existing lottery commission structure.
The Italian government and Prime Minister Giorgia Meloni appear as named parties in the fiscal estimates attached to the bill, which remains subject to amendment during the parliamentary process.
Frequently Asked Questions
When do the proposed PREU and VLT increases take effect?
The proposed increases take effect on 1 January 2027. The Budget Bill sets the PREU for AWP machines at 25% and raises the VLT levy to 9.6% from that date.
How do the draft rules change slot stakes and prizes?
Maximum stakes on slot machines rise from €1 to €2 and maximum prizes double from €100 to €200. Machines that return at least 70% as winnings qualify for a reduced 20% levy.
What revenue does the government expect from the gambling measures in 2027?
The government expects approximately €952 million in 2027. Forecasts attribute €334 million to the increased PREU, €281 million to concession extensions and €188 million to scratch cards.
How long will land-based concessions be extended under the draft?
The draft extends current land-based gambling concessions until the end of 2029 and introduces new annual and permit-based operating fees for concession holders.
What is ACADI's response to the proposals?
ACADI has warned that higher equipment taxes combined with new concession fees endanger operator profitability in a contracting market. President Geronimo Cardia said the association is urging against actions that would close the supply chain that provides state revenue.
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About the author
Eleanor Whitfield
Regulatory Affairs Correspondent
Eleanor Whitfield tracks gambling legislation, licensing decisions, and regulator enforcement across key markets — from the UKGC, MGA, and Germany's GGL to Spain's DGOJ and the state-by-state map in the Americas. The reporting answers three questions precisely: what changed, where, and who it affects, with jurisdictions, effective dates, and penalty figures named exactly as published. Compliance officers and operators read Eleanor Whitfield to know which rulebook moved before their next board meeting.
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