Italy’s 2027 budget bill proposes €55.2m annual tax on skill games

Italy's 2027 budget bill is expected to bring in roughly €4.8m of extra revenue in its first year, according to the technical report, through a new regime for games with no cash prize offered via online platforms and LAN rooms. Revenue is expected to grow considerably from 2028, when the government's assumptions put annual entertainment tax (ISI) receipts at up to €55.2m. On top of that come the fees for two-year authorisations, put at over €1m for 2027 and over €10m per year from 2028.

The new system rests on a specific category of devices without cash winnings, a requirement for authorisation from the Customs and Monopolies Agency, and flat-rate taxation through the entertainment tax. The stated aims are to ensure player safety, protect public faith and order, and secure the correct fulfilment of tax obligations. A later measure by the agency's director is to set the conditions for issuing, suspending, forfeiting and revoking authorisations. The authorisation would last two years. The contributions are €200 per device, €1,000 per dedicated room, €2,000 per game offered and €10,000 per online platform used.

The bill would introduce flat annual taxable bases and a specific 8% rate for these devices. The average flat annual taxable base is set at €15,000 per device or gaming station. For so-called large simulators, the taxable base rises to €25,000. The report says the entertainment tax was not applicable to this type of offering under the current transitional regime.

To quantify the first-year effect, the government cautiously assumes about 200 LAN rooms nationwide, each with an average of 20 devices or gaming stations, or 4,000 units in total. The forecasts change significantly from 2028, with the offer expected to expand until it reaches about 2,300 LAN rooms nationwide. The estimate rests on assuming one dedicated room for every municipality above 5,000 inhabitants. With 20 devices or stations per venue, the total number of units subject to the tax would climb to about 46,000. According to the report, these estimates keep the €15,000 average flat taxable base and leave out the higher base set for large simulators. The report also looks at the period after 2029, assuming the same number of operators stays on the market in later years.