Bull Gaming CEO criticises proposed Italian gaming tax increase
Regulation2 min read
In brief
- The 2027 budget law provides for a one-percentage-point PREU rise on AWP and VLT machines.
- Gatti said new AWP machines with payout up to 70% could help revive the product.
Francesco Gatti, chief executive of Bull Gaming, spoke at SiGMA Central Europe, which is under way in Rome. He described land-based gaming as a fundamental sector, important for employment, local economies and the social side of entertainment, and not only for tax revenue. In his words, online gaming cannot offer the level of employment that the land-based market generates.
Gatti pointed to measures in the 2027 budget law that provide for a one-percentage-point increase in the single gaming tax (PREU) on AWP and VLT machines. He regards this as particularly critical for a sector that has, in recent years, faced repeated increases in the tax burden. In his view, the budget seeks additional funds from a sector from which no more can be taken.
Gatti also identified a possible technological change as a basis for reviving the market. This is the possible introduction of new AWP machines with a higher return rate, up to 70% according to hypotheses in the draft budget. He said machines with a better payout would allow the product to be revived. The change would require new investment by companies in the supply chain.
Gatti said the 65% figure often cited for AWP machines is not the machine's payout but a cash out, meaning the amount physically inserted against the amount physically returned. He added that a machine at 70% has an internal payout of around 93-94%. He said a new machine would change several dynamics, including a maximum win of €200. Gatti said the machines used in bars are not pushed towards gambling. He acknowledged that some structural limits remain, including one linked to the use of coins.