A new motion introduced to the Senate Budget Committee has reopened discussion over the governance and taxation of slot machines across Italy’s provinces and municipalities.
Submitted by Senator Claudio Lotito of Forza Italia during debates on the 2026 Budget Law, the proposal calls for a pilot taxation scheme of slot machines (AWPs) — a move that could reshape how Italy taxes and regulates one of its largest gambling verticals.
The motion is submitted as a “consideration for the Budget 2026”, as lawmakers reassess how the land-based sector aligns with the wider gambling reorganisation that is currently being undertaken by the Meloni government.
Lotito proposes that tax rates be linked to player expenditure rather than gross revenue, with the aim of rebalancing the slot sector’s fiscal model and restoring competitiveness against both other regulated products and the illegal market, which continues to divert play away from licensed venues.
The plan also includes measures to strengthen player protection. Slot machines would be required to deliver a minimum 70% payout ratio, while the maximum prize limit would increase from €100 to €200.
Additional provisions introduce stricter responsible-play requirements, including technical safeguards to prevent underage access and limits on session duration, reinforced by on-screen warning messages – in-line with approved measures of the government reorganisation decree.
Lotito’s proposal replaces an earlier withdrawn amendment but lands at a critical moment for the sector. According to Budget Bill projections, slot wagers have declined from €24 billion in 2018 to an estimated €15.4 billion in 2026, while the tax rate has risen from 19.1% to 24% — a combination that has cost the state roughly €900 million in lost fiscal yield.
The initiative sits within the broader 2026 restructuring of Italy’s land-based gambling system, overseen by the Customs and Monopolies Agency (ADM). From January 2026, all slot and VLT authorisations will become fully digital, with QR-code labels replacing paper documentation under the agency’s traceability reforms.
The ADM confirmed that the digitisation trial had been completed “without reports of critical issues” and that penalties will apply for machines found without legible or intact QR codes.
Looking ahead, the Meloni government will proceed with phase two of Italy’s gambling reorganisation in 2026, modernising laws and compliance for land-based gaming venues and suppliers.
Key reforms will centre on the creation of a Unified Concession Model — a single national framework for retail gaming — introducing standard operating rules across provinces and municipalities, enhancing digital traceability, and strengthening player protection.
The ADM is also preparing to launch public tenders for new retail gaming concessions in late 2026, covering both betting shops and gaming halls, as part of the state’s long-term plan to secure fiscal stability and ensure full compliance with EU procurement standards.
