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Italian government plans higher taxes on AWP and VLT machines from 2027

Regulation2 min read

In brief

  • ADMIRAL Gaming Network voiced concern over planned Italian budget measures affecting AWP and VLT machines.
  • It said the changes mean a 10% fall in AWP revenue and 15% in VLT revenue from 1 January 2027.

ADMIRAL Gaming Network voiced strong concern over measures that the Italian government has provided for in its forthcoming budget law and that hit the amusement machine segment directly. Under the planned tax increase, turnover would drop by 10% for AWPs and by 15% for VLTs throughout the land-based public gaming chain, starting 1.1.2027. Concession charges would also be significantly higher, with a 25% rise for VLTs.

ADMIRAL Gaming Network said that, if the higher tax burden on AWPs and VLTs were confirmed, the economic balance of the sector would be compromised. The company also said the estimated increase in public revenue would not be guaranteed. According to ADMIRAL Gaming Network, the machine sector has recorded a fall of about 45% in amounts wagered since 2018, and of more than 30% in players' net spend. The company said the sector has already lost more than 9,000 jobs since 2018.

ADMIRAL Gaming Network said it is particularly concerned about a possible weakening of the territorial network of authorised gaming points. It said that reducing the network's economic sustainability would leave space that illegal offer risks occupying.

Michele Masini, chief executive of ADMIRAL Gaming Network, said the company understands the need to find resources for public finances. Masini said the measures in the budget would weaken the legal network and put thousands of jobs at risk. He called for talks with the government to open immediately. The company said it hopes a careful and thorough assessment of the economic, employment and social impact of the proposed measures will be carried out during the drafting of the budget law.

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Regulation

Italy’s 2027 budget proposal would raise AWP and VLT tax rates

Italy’s 2027 budget proposal is reported to include higher PREU rates on AWP machines and VLTs, alongside other gaming-sector measures. The reported rates would rise from 24% to 25% for AWP and from 8.6% to 9.6% for VLT, generating about €315m in 2027; the report says the draft text was not yet available and reports differing estimates for the total measures.

Italy's Council of Ministers approved the 2027 budget bill on 28 October, the prime minister said at a press conference. She said more than €700m would come from the gaming sector. The bill text was not yet available, and the latest reconstructions suggested it would arrive over the weekend.

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