Italy Moves Toward Retail Gambling Reform as Black Market Pressures Mount

The reform, driven by the Council of Ministers under Prime Minister Giorgia Meloni, represents the next step in a broader overhaul of Italy’s gambling framework, following the revision of online licensing rules implemented in November 2025. The draft decree is currently under evaluation by the Unified Conference, which brings together regional and municipal authorities, highlighting the need for alignment across different layers of governance.

At the core of the reform is a new concession model for land-based gambling verticals. Gaming machine licences are expected to be issued with a starting bid of €25m for packages including 4,000 Amusement with Prizes (AWPs) and 900 Video Lottery Terminals (VLTs). Retail betting concessions will be distributed in blocks of 25 licences priced at €60,000 each, with a base auction value of €1.5m. Meanwhile, bingo operations will be tendered at €350,000 per venue, covering a network of approximately 210 halls.

The urgency behind the decree has been amplified by a €250m decline in tax revenues from gaming machines recorded in 2025, reinforcing concerns about channelisation. Authorities estimate that the illegal gambling market—spanning both retail and digital channels—continues to expand, eroding the regulated sector’s share and fiscal contribution.

In response, the reform introduces stricter operational requirements, including tighter limits on opening hours and reinforced distance restrictions between gambling venues and sensitive locations such as schools and hospitals. However, the decree also seeks to balance these constraints with incentives, notably through a revenue-sharing mechanism designed to increase local government engagement. An initial €80m fund has been earmarked for distribution across regions.

A new certification framework will allow compliant operators to benefit from reduced minimum distance requirements—set at 100 metres—provided they meet enhanced regulatory standards. In parallel, authorities plan to establish a permanent oversight committee focused on monitoring gambling-related harm and strengthening anti-money laundering controls under the supervision of the Customs and Monopolies Agency.

The government is working against a firm legislative deadline, aiming to finalise the decree before the fiscal delegation law expires on 29 August. Achieving this milestone would also bring an end to the repeated extensions of existing concessions for gaming machines, betting shops and bingo halls, all currently valid until 31 December.

Despite broader political pressures, including the fallout from a failed judicial reform referendum in March, the administration has reaffirmed its commitment to restructuring both retail and online gambling. The final shape of the decree will be critical in determining whether Italy can stabilise its regulated market, improve tax performance and effectively curb the growth of illegal gambling activity.