Italy’s budget bill proposes higher PREU rates for AWP and VLT machines
Regulation3 min read
A provisional parliamentary dossier on Italy’s 2027 budget bill describes proposed changes to AWP and VLT gambling machines. The draft would set the tax levy at 25% for AWP and 9.60% for VLT, each one percentage point higher; qualifying AWP machines with a payout rate of at least 70% would face a 20% rate. The technical report estimates additional revenue of €334 million in 2027, €365 million in 2028 and €456 million in 2029.
Italy’s 2027 budget bill would raise the PREU levy on AWP and VLT machines by one percentage point, reportedly setting it at 25% and 9.60% of stakes respectively. A technical report estimates that the levy changes could raise an additional €334m in 2027, €365m in 2028 and €456m in 2029.
AWP machines programmed to return at least 70% of stakes as winnings would qualify for a 20% levy. The relief would apply pending replacement of the machines with systems allowing play exclusively from a remote environment. Participation would be optional and require software updates and a verification, certification, approval and authorisation process, according to the explanatory report. The stated aims include protecting tax revenue and concession values, countering illegal gambling and ensuring balanced competition among concessionaires.
The bill would raise the maximum AWP stake from €1 to €2 and the maximum prize from €100 to €200. The provision aims to account for the cost of living and align the limits with other land-based games, including to counter a shift in demand to illegal channels or other forms of gambling.
For amusement machines without cash prizes, the bill would expressly include fully mechanical machines and raise the maximum cost per game from €1 to €2. The maximum prize value would rise from €20 to €40 because it is fixed at 20 times the cost of a game.
Certain older amusement machines without cash prizes could gain permanent authorisation instead of being scrapped where ordinary certification is impracticable. Machines installed before 1 January 2003 have a temporary authorisation regime due to end on 31 December 2026. A self-certification confirming compliance with legal requirements must be submitted to the Customs and Monopolies Agency within sixty days of the law taking effect. Permanent authorisation also requires a one-off payment of €1,000 for each machine by 30 April 2027. The technical report estimates additional revenue of €15m in 2027 from the payment.
Failure to regularise within the prescribed terms would end the temporary authorisation and lead to confiscation. A machine found at a location other than the one declared would incur an administrative penalty of €100 to €500. A machine whose characteristics differ from those declared would incur a €4,000 administrative penalty per machine.
The bill would introduce rules for e-games, including machines offering skill and entertainment content through online platforms accessed remotely on local networks in dedicated venues. The machines would be excluded from the existing authorisation regime but would require identification, registration and monitoring under technical arrangements to be set by ADM. Opening venues and installing e-games stations would require two-year ADM authorisations. Applicants would have to pay €200 per machine, €1,000 per LAN venue, €2,000 per game offered and €10,000 per internet platform used. ADM would set tournament conditions and technical, functional and organisational requirements for platforms, games and venues. Implementing rules would cover participation, maximum entry fees and prizes, and any contribution towards ADM controls, capped at 8% of participation fees.
The technical report estimates combined additional revenue from e-games authorisation contributions and entertainment tax at €5.87m in 2027, €66.03m in 2028 and €56.27m in 2029. For entertainment tax, the bill would set a flat annual taxable amount of €15,000 per machine.