Italy's budget bill sets proposed 2027 AWP and VLT tax rates

Italy's 2027 budget bill proposes new rates for the single tax on gaming machines (PREU) from 1 January 2027, according to the text of the bill. The draft sets the PREU on AWP machines at 25% of amounts staked and raises the rate on VLT machines to 9.60%. The bill has been stamped by the State Accounting Office and must now go through parliamentary examination.

The proposed rates replace those set by Law 160/2019, which were 24% for AWP and 8.60% for VLT. AWP machines programmed to return at least 70% of stakes would be subject to a PREU of 20%, five percentage points below the ordinary rate. The text links this measure to a transition towards machines allowing play exclusively from a remote environment, without setting a deadline for replacement. The stated aims include safeguarding tax revenue and the value of concessions, countering illegal gambling and protecting competition between concessionaires.

The same article changes the characteristics of AWP machines, doubling the maximum cost of a single game from €1 to €2 and raising the maximum permitted win from €100 to €200.

Article 24 covers amusement machines without cash winnings, raising the maximum cost of a game from €1 to €2 and adding an explicit reference to mechanical machines. It sets rules for keeping certain categories of machines installed before 1 January 2003, and certain mechanical and electromechanical machines, in operation provided they are still installed at 31 December 2026. Owners must file a substitute declaration with the Agenzia delle dogane e dei monopoli within 60 days of the law coming into force, stating the type and location of the machines, compliance with technical rules and the presence of devices needed to ensure they cannot be modified. A one-off payment of €1,000 per machine is due by 30 April 2027. Failure to comply would mean the temporary clearance loses effect and the machines are confiscated. Installing a machine somewhere other than the declared location carries an administrative fine of €100 to €500, while technical discrepancies fall under the penalties in the TULPS.

Article 25 introduces a specific regime for machines used in LAN rooms for games of pure skill and entertainment without cash winnings, delivered as digital content through online platforms. The category covers consoles, simulators and personal computers used for play, rankings and simultaneous remote competitions. Operating the rooms and installing the machines would require ADM authorisations valid for two years. The text provides for payments of €200 per machine, €1,000 per room, €2,000 per game offered and €10,000 per online platform used. Rooms must have at least 20 machines or stations and may host only those in the new category. Minors would be admitted only for games compatible with their age group under PEGI or equivalent classifications. Collecting bets of any kind would be prohibited. Premises must be arranged so users can perceive the passage of time. PC-based equipment and online platforms must retain digital activity records for at least five years, in line with data protection rules. ADM must set rules on tournament participation, maximum entry fees and prize values, and may provide for a contribution for control activities of no more than 8% of participation fees. For tax purposes, a flat average annual taxable base of €15,000 applies per machine or gaming station, rising to €25,000 for large simulators and their stations, with the rate set by the entertainment tax regime. Existing rooms get a transitional regime subject to a substitute declaration within 60 days of the new rules coming into force. ADM implementing measures must be adopted within eight months of the law coming into force, and the transitional regime ends 60 days after their adoption.

Article 26 extends until 31 December 2029 concessions for collecting sports, horse-racing, non-sports and simulated-event bets, as well as concessions for the telematic networks of AWP and VLT machines. The measure is introduced pending an overhaul of land-based public gaming, with the aim of ensuring continuity of collection and state revenue. For betting, annual concession fees are set at €14,250 for each right relating to outlets where gaming is the main activity, including regularised outlets, and €8,550 for each right relating to outlets where gaming products are a secondary activity. Payments are to be made in two annual instalments due on 30 April and 31 October. For AWP and VLT network concessions, a total fee for the whole extension period is set at €150 for each AWP clearance held at 30 November 2026 and €7,500 for each VLT right issued at the same date. Payment is split into nine instalments due on 15 March, 15 July and 1 October of each year of the extension period. ADM will also define the financial guarantees concessionaires must provide, taking account of the amounts due and the length of the extension.

Article 27 extends Bingo concessions expiring at the end of 2026 until 31 December 2029 and introduces monthly fees proportional to the revenue of individual halls, based on the total value of cards bought by the concessionaire and sold in the hall in the previous year. The system has 81 bands. Halls with annual revenue of no more than €1.2m pay a monthly fee of €6,500. For each subsequent band, corresponding to revenue increases of €200,000, the amount rises by €100, up to a maximum of €14,500 a month for halls with revenue above €17m. Payments are due by the tenth day of the following month, and for fractions of a month of 15 days or less half the monthly amount is payable. The measure also addresses fees for earlier extension periods, referring to legislative provisions adopted from 2017 to 2024, with a different calculation system, also in 81 bands, with monthly fees between €3,250 and €11,250 depending on revenue. Amounts already paid in excess may be used to offset later monthly payments, while residual debts may be paid in up to 12 monthly instalments. The provision is relevant given litigation over the determination of fees for Bingo concessions under extension. A further change reduces the minimum road distance from the nearest Bingo hall for transfers of halls from 30 to 15 kilometres.

Article 28 extends until 31 December 2029 the concession for instant-draw lotteries, including those with remote participation, for a total fee of €188m payable to the state in two instalments of €94m each, due on 31 March and 30 September 2027.

Article 29 adds a weekly draw for Lotto and SuperEnalotto, also covering optional and complementary games. The new draw is to be held on Wednesdays and must be established by ADM within 60 days of the law coming into force. If the day coincides with a national holiday, the agency may defer the draw to the first following working day or, in exceptional cases, bring it forward to the first preceding working day.