IIDEA opposes proposed Italian LAN-room rules in 2027 budget bill

IIDEA, the association representing Italy's video-game industry, said it opposes Article 25 of the 2027 budget bill, which would introduce authorisation, oversight and tax rules for LAN rooms. The association called for the provision to be removed in full and for a discussion with the sector in the appropriate institutional settings.

According to IIDEA, the budget bill's Article 25 goes well beyond new tax levies and sets out an organic regulatory framework. That framework would give the Agenzia delle Dogane e dei Monopoli (ADM) broad powers of authorisation, oversight and regulation covering LAN rooms, devices, video games, online platforms and esports competitions. The association drew a distinction: video games are products of the cultural and creative industry, whereas esports are competitions built on the skills of participants and on the rules of individual titles. IIDEA said it was not clear which specific public-interest needs would justify such a regulatory apparatus, nor how the planned measures had been assessed for necessity and proportionality given the nature of the activities involved. If a reform of this scope were deemed necessary, the association argued, it should follow a stand-alone legislative path and be preceded by consultation with the sector's representatives rather than being brought in through a budget law.

IIDEA said the technical report acknowledges the absence of reliable data on the number of LAN rooms but estimates 200 in 2027 and 2,300 by 2028, with total revenue of more than €66m between taxes and authorisation contributions. According to IIDEA's internal estimates, about 70 LAN rooms operate in Italy, and only around 20 have at least 20 stations, the threshold set by the bill. IIDEA said the economic value of the entire esports sector is estimated at between €32m and €35m for 2026, rising to €60m by 2030. The association said the government's projected revenue for 2028 would therefore exceed the value of the entire Italian esports segment. IIDEA said the new tax and administrative charges risk undermining the sector's sustainability, putting existing activities at risk and particularly affecting small operators and the associations that run the rooms.

IIDEA said the impact of the budget bill's Article 25 is not confined to LAN rooms. The provision, the association said, gives ADM powers over esports competitions, participation fees and prizes, and envisages a possible contribution of up to 8% of the fees. On top of that, IIDEA said, come new authorisations and requirements for video games and platforms, together with an obligation to keep logs of online activity for five years. Such requirements, according to the association, may bear directly on publishers, developers, platforms and tournament organisers, and may even involve the video-game players themselves.

IIDEA said the provision raises questions of compatibility with the European legislative framework, in particular on the free provision of services, the country-of-origin principle and the notification obligations for technical regulations. The association also cited concerns over personal data protection and the proportionality of keeping logs for five years.

IIDEA said Article 25 in its current form is disconnected from the reality of LAN rooms and introduces a regulatory model inconsistent with the nature of video games as cultural and creative industry products. The association said the provision imposes unjustified burdens on a segment still in development, putting companies, investment and player communities at risk. IIDEA called for the article to be removed and for a structured discussion with sector representatives so that any future regulatory initiative is based on reliable data, proportionate to its objectives and respectful of the video-game sector's specific features.