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STS-FIT president questions whether Italy’s proposed AWP and VLT tax rise will increase revenue

Regulation1 min read

STS-FIT president Emilio Zamparelli said a proposed tax increase on AWP and VLT machines in Italy’s 2027 budget may not raise more state revenue. He argued that higher PREU could reduce retailers’ compensation and suggested reviewing machine payout levels as an alternative.

A possible new tax rise on AWP and VLT gaming machines, linked to the 2027 budget, raises doubts about whether it would really increase state revenue. Emilio Zamparelli, president of STS-FIT, spoke on the issue. He did so at the SiGMA Central Europe Summit in Rome on 3 November.

The measure under discussion is a possible one-percentage-point rise in PREU on AWP and VLT machines, which emerged in the debate on the 2027 budget law. Zamparelli said the sector is losing tax revenue and that a tax increase would not offset that loss. As an alternative, he proposed reviewing the payout of the machines. He also said payouts are currently low compared with the online sector.

Past experience, in Zamparelli's words, shows that higher taxation often ends up weighing on the retailer, whose compensation shrinks. He pointed to the figures for points of sale, which keep declining. On innovation, Zamparelli said the sector is missing it. He added that the product is more than twenty years old and dates back to 2004.

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Italian budget bill proposes higher AWP and VLT taxes from 2027

Italy’s 2027 budget bill proposes raising the PREU tax on AWP from 24% to 25% and on VLT from 8.6% to 9.6%, according to its technical report. The government forecasts additional revenue of €334m in 2027, €365m in 2028 and €456m annually from 2029, plus €15m in 2027 from registering machines that do not pay cash winnings.

Italy's 2027 budget bill proposes raising the single tax on gaming machines, with the technical report accompanying the draft law setting out the expected revenue effects. Article 23 of the bill would increase the PREU by one percentage point, from 24% to 25% for AWP machines and from 8.6% to 9.6% for VLTs, according to the report. The government forecasts additional revenue of €334m in 2027, €365m in 2028 and €456m a year from 2029, plus €15m in 2027 from the regularisation of machines that do not pay cash winnings.

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