On January 9, 2025, President Sergio Mattarella ratified Italy’s 2025 Budget Law, which includes the extension of tax concessions for the gambling industry. This legislative move has garnered mixed reactions from stakeholders within the Italian gambling sector.
Online Gambling License Extensions
The Ministry of Finance (MEF) has prolonged existing online gambling licenses for an additional fiscal year. This extension allows operators to continue their activities under current licenses before transitioning to a newly established licensing system. The forthcoming framework mandates a €7 million authorization fee and imposes operating fees of 3%.
Land-Based Gambling Venue Concessions
Concessions for land-based gambling establishments, initially set to expire in December 2024, have been extended by two years. This extension provides the government with additional time to reorganize regulations concerning retail betting, horse racing, bingo, and gaming machines.
Transition to New Licensing Regime
The new online gambling licensing framework was officially launched on December 19, 2024, following approval from the European Commission. Current license holders are required to transition to this new system by May 30, 2025, as stipulated by the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s Customs and Monopolies Agency. The €7 million license fee is structured in two payments: €4 million upon award and €3 million upon the commencement of operations, which must occur within six months of receiving ADM’s approval.
Italian operators have expressed concerns regarding the substantial €7 million fee for online gambling licenses, arguing that it may disproportionately affect small and mid-sized operators. The trade body Logico has warned that many operators might decline new concessions due to the high fees and additional tax burdens. Moreno Marasco, President of Logico, emphasized, “The risk is weakening a sector that is the only bulwark against illegal gambling.”
Tax Adjustments and Revenue Projections
The Budget Law also introduces revisions to tax rates on specific gambling verticals. For the online segment, gross gaming revenue (GGR) tax rates for sports and virtual betting will increase from 24% to 24.5%. For online casino, bingo, and poker, GGR taxes will rise from 25% to 25.5%. The government anticipates raising €481 million in new tax revenues in 2025 through these adjustments and the transition of online operators to the new regime.
In the retail gambling sector, the sports betting tax rate has increased from 20% to 20.5%, and virtual games have risen from 22% to 24.5%. Notably, fixed-odds horse betting experienced a significant reduction, dropping from 43% to 20.5%. These changes are projected to generate an additional €39 million annually. The reduction in the fixed-odds horse betting tax rate aims to revitalize Italy’s struggling horse racing sector.
Despite concerns from domestic operators, foreign companies view Italy as a growth market within Western Europe. In 2024, Flutter Entertainment expanded its Italian presence by acquiring Gruppo SNAI from Playtech for €2.3 billion, allowing it to operate brands such as Betfair, PokerStars, Sisal, and SNAI. Additionally, Pontus Lindwall, CEO of Betsson AB, expressed confidence in gaining market share in Italy’s casino and sportsbook markets. Evoke Plc, the parent company of 888, reported a 30% increase in Italian income, highlighting Italy as a critical market for the firm’s strategic recovery.
Industry analysts are closely monitoring these developments, as Italy could become a new battleground for mergers and acquisitions in 2025.
Source:
Italy’s Gambling Tax Breaks Extended to 2025, sbceurasia.com, January 20, 2025.