Italy’s 2027 budget dossier outlines higher AWP and VLT PREU rates
Regulation2 min read
A financial dossier accompanying Italy’s 2027 budget bill has reached the Chamber of Deputies, setting out proposed changes to gaming machines. The dossier said the bill would raise the AWP maximum stake to €2 and maximum prize to €200, set PREU at 25% for AWP and 9.60% for VLT from 1 January 2027, and apply a 20% rate to qualifying AWP.
A financial dossier accompanying Italy’s budget bill has reached the Chamber of Deputies, outlining proposed changes to gaming machine rules and taxes.
The bill would raise the maximum stake per AWP game from €1 to €2 and the maximum prize from €100 to €200. From 1 January 2027, PREU tax would be set at 25% of stakes for AWP and 9.60% for VLT. The current rates are 24% for AWP and 8.60% for VLT, both applicable since 1 January 2021.
AWP programmed to return at least 70% of stakes as prizes would qualify for a 20% PREU rate from 1 January 2027, pending replacement by machines allowing play only remotely. The current minimum payout is 65% for AWP and 83% for VLT.
The technical assessment estimated that the changes would increase state revenue by €334m in 2027, €365m in 2028 and €456m from 2029. It assumed that stakes on qualifying AWP would rise 30% against the level under current law, following higher payouts and increased stake and prize limits. Based on about 230,000 AWP in operation in 2025, the assessment estimated that 23,000, or 10%, would adopt the proposed regime in 2027, rising to 69,000, or 30%, in 2028 and all machines from 2029.
The dossier said the assessment’s calculations could be reproduced, but sought clarification of the assumptions about player behaviour and stakes. It said the estimated €258m in additional AWP revenue from 2029 would depend entirely on the assumed increase in stakes compensating for the lower rate. The dossier sought clarification of the tax regime after the transition and whether the assumed increase in stakes would be permanent.
The technical assessment gave combined AWP and VLT PREU revenue forecasts of €5bn for 2027, €4.9bn for 2028 and €4.8bn for 2029. It allocated €3.5bn, €3.3bn and €3.1bn respectively to AWP for those years, citing a decline in that market. The VLT allocations were €1.5bn in 2027, €1.6bn in 2028 and €1.7bn in 2029.
The bill would also raise the maximum cost per game from €1 to €2 for a category of machines that do not award cash prizes.