AS.TRO representative says 2027 tax increases threaten Italian gambling businesses
Regulation2 min read
AS.TRO vice-president Armando Iaccarino said Italy’s proposed 2027 budget measures could make costs for bingo and gaming-machine businesses unsustainable. He called for a review of territorial rules and a moratorium, while arguing that regulation should reflect changing digital consumption.
Proposed tax and cost increases in Italy's 2027 budget could sharply reduce activity among bingo and gaming-machine businesses, AS.TRO vice-president Armando Iaccarino said. He spoke at the presentation in Rome of the sixth study of Italy's gambling sector, produced by CGIA di Mestre with AS.TRO.
Iaccarino estimated that a one-percentage-point increase in the PREU gambling tax would reduce revenue by about 9% for one part of the industry and 14% for another. Those estimates exclude other costs, including energy and regulatory investment, he said. Some businesses might absorb the increases, but others with less financial capacity could leave the market, with consequences for employment, he said.
Iaccarino questioned whether the measures would raise the expected tax revenue. He cited figures showing that the AWP sector contracted by an average of about 5% a year between 2022 and 2025. He said the trend would not reverse in 2027 without measures to support the sector.
Iaccarino said AWP machines remained largely based on a product model dating from 2004 and had faced repeated tax increases, sometimes several times in a year. He said a tax increase had been imposed during the pandemic when gaming venues and other premises were closed. He cited growth in 2009 to 2010, when a second generation of machines and new controls helped bring some irregular gambling into the regulated market.
Iaccarino called for tax measures to support investment and greater regulatory certainty. He proposed an immediate moratorium to maintain the current situation while a shared approach to safety is developed. He said fragmented local gambling rules should be replaced with uniform treatment for businesses across Italy.
Rules governing where machines can be placed and when they operate need reassessment as gambling moves online and access changes, Iaccarino said. The AWP and VLT segment accounted for “0,25%” of household spending. He cautioned against minimizing gambling risks, especially for minors. He cited findings that “circa 300mila” young people under 19 are approaching forms of gambling with cash prizes.
Iaccarino said understanding player behaviour was necessary to assess policy and address illegal gambling.