Italy proposes ADM permits and fees for LAN gaming venues

Italy's 2027 budget bill proposes a regulatory framework for LAN venues and for devices that provide access to digital skill and entertainment games with no cash prizes through online platforms. The measure, set out in Article 25 of the bill, would create a new device category under Article 110, paragraph 7, of the TULPS public security law, with two-year authorisations issued by the ADM, technical and organisational requirements for venues and a tax system based on flat-rate annual taxable amounts. The bill also contains provisions on tournaments, access for minors and the continuation of existing activities.

The new letter c-quater) would cover devices installed only in LAN venues, including game consoles, simulators and personal computers, provided they hold the necessary use licences and are used solely for the activities the rule sets out. Those activities include running games, compiling rankings, simultaneous remote participation, updating electronic memories and monitoring and control functions related to play. Each device would have to be uniquely identified and the number of connected play stations stated. Equipment with a PC architecture would have to keep a history of online activity for at least five years, in line with data protection rules. The provisions in paragraphs 3, 4, 5 and 5-bis of Article 38 of Law 388/2000 would not apply to the new devices. Technical features and identification, registration and control procedures would be set by later ADM measures.

Operating LAN venues and installing devices in the new category would require ADM authorisations valid for two years. The bill sets four separate amounts: €200 for each gaming device used, €1,000 for each dedicated venue, €2,000 for each game offered and €10,000 for each online platform used. The amounts relate to different components of the activity and do not form a single fee per venue. By way of example, the source states that a facility with 20 devices, five different games and one online platform would pay a total of €25,000 across all components. Conditions and procedures for issuing authorisations, including grounds for suspension, forfeiture and revocation, would be set by a measure of the ADM director.

Venues would need at least 20 devices or play stations and could host only equipment in the new category. Access would be allowed to people under 18, but game use would be limited to content compatible with the relevant age band under the PEGI classification or equivalent systems. Games would have to carry the recommended age and content type and hold specific licences for use in premises open to the public. Venues would also have to ensure conditions that let users perceive the passage of time, and the bill explicitly bans the collection of bets of any kind inside the facilities.

For tournaments organised through digital platforms, the ADM would define participation procedures, the maximum entry fee and the maximum prize value by later director's measures; these could also be set according to the number of participants. The bill allows for a contribution to ADM control activities of up to 8% of entry fees. The contribution is not automatically fixed at 8% but is a possible measure whose application would be regulated by the ADM.

On tax, Article 25 would amend the consolidated text on minor state taxes by introducing a flat-rate average annual taxable amount for devices in the new category. Each device would have a taxable amount of €15,000 a year; where a device gives access to several play stations, the same amount would apply to each station. For large simulators, and for each of their stations, the flat-rate annual taxable amount would be €25,000. The entertainment tax rate at point 2 of the tariff in Annex 2 to Legislative Decree 174/2024 would apply. The €15,000 and €25,000 figures are taxable bases for calculating the tax, not sums paid directly to the Treasury, and the taxable amount would depend on the number of devices or stations installed rather than on actual takings.

Platforms used by venues would have to meet technical and functional requirements: remote access would be limited to games in the new category, and the history of online activity between the platform and connected devices would have to be kept for at least five years. That obligation would be additional to the one for PC-architecture equipment. Operating procedures would be set by the ADM through the implementing measures provided for in the bill.

LAN venues already operating when the new rules take effect could continue temporarily if operators file a substitute declaration within 60 days under Articles 46 and 47 of DPR 445/2000. The declaration would have to include the company name, registered office and any operating sites, the venue's address and size, details of the public security licence under Article 86 of the TULPS, and information on devices, stations, online platforms used and games offered. The operator would also have to declare the absence of grounds for prohibition, forfeiture or suspension under anti-mafia law and the absence of anti-mafia information or interdictions. Filing the declaration, while ADM checks and anti-mafia verifications remain possible, would allow temporary continuation of the activity subject to payment of the entertainment tax. The transitional regime would last until the 60th day after adoption of the ADM implementing measures, which must be issued within eight months of the law taking effect.