Admiral Gaming Network chief warns proposed Italian taxes could weaken gaming venues
Regulation2 min read
Admiral Gaming Network chief executive Michele Masini warned that proposed tax increases on AWP and VLT machines in Italy’s 2027 budget could undermine the economics of the regulated retail gaming network. He cited an estimated 45% decline in amounts wagered and a fall of more than 30% in players’ net spending, and called for balanced taxation and conditions supporting equipment replacement.
Italy's 2027 budget proposes higher taxes on AWP and VLT gaming machines, a move Admiral Gaming Network chief executive Michele Masini warns could undermine the regulated retail gaming network.
The budget bill also provides for paid extensions of concessions until 2029 and allows the development of machines with higher payout rates and different tax treatment.
Masini called for balanced taxation and concession charges proportionate to profitability, alongside technology investment. He estimated that amounts wagered on machines had fallen by about 45% and players' net spending by more than 30%, while the entertainment machine sector had lost more than 9,000 jobs since 2018. Higher costs and a less attractive offering could cause more venues to close, affecting jobs and the geographic presence of licensed operators, he warned.
Masini said AWP machines currently return a lower share of wagers to players than comparable products, particularly online. He welcomed the provision for higher-payout machines but said technical and economic conditions would be needed to support a rapid replacement of existing machines.
Masini argued that the extensions for machines, betting and bingo reflected delays in regulatory reorganisation and the absence of new tenders, rather than a commercial choice by concessionaires. Operators must maintain their activities and bear costs without yet knowing the terms of the future concession system, he said. He distinguished those extensions from the instant lottery concession extension, which he said had different grounds.
Admiral Gaming Network proposed using 2027 to 2029 as a transition towards a new distribution and technology model for retail gaming. Under the proposal, some concession charges could be reduced in return for certified investment in replacement machines, digital payments and consumer protection tools. The measures suggested include age verification and technology to identify and prevent risky gambling behaviour.
Masini said parliamentary review of the 2027 budget bill should be an opportunity to define a path to modernise the retail gaming network, with balanced rules across products, sustainable taxation and conditions allowing operators to plan investments.