Date: 23.01.2025

by Adam Dworak

Italy Extends Gambling Tax Concessions Amidst Industry Concerns

President Mattarella ratified Italy’s 2025 Budget Law, extending tax concessions for the gambling industry, which has sparked mixed reactions. This move includes license extensions and tax adjustments, impacting both online and land-based operations.

Online Gambling License Extensions and New Fees

The Ministry of Finance has extended existing online gambling licenses for another year, allowing operators to continue under current terms before transitioning to a new licensing system.

This new framework requires a €7 million authorization fee and a 3% operating fee. Current license holders must transition by May 30, 2025, with the €7 million fee split into two payments.

Land-Based Concessions and Tax Adjustments

Concessions for land-based gambling establishments have been extended by two years, providing the government time to reorganize retail betting, horse racing, bingo, and gaming machine regulations.

The Budget Law also introduces tax rate revisions, increasing GGR taxes for online sports and virtual betting to 24.5% and for online casino, bingo, and poker to 25.5%.

Retail sports betting tax increased to 20.5%, while fixed-odds horse betting saw a reduction to 20.5%.

Industry Concerns and Market Growth

Italian operators have expressed concerns about the €7 million online gambling license fee, fearing it may disproportionately affect smaller operators.

Logico President Moreno Marasco warned: “The risk is weakening a sector that is the only bulwark against illegal gambling.”

Despite these concerns, foreign companies view Italy as a growth market, with Flutter Entertainment acquiring Gruppo SNAI and Betsson AB CEO Pontus Lindwall expressing confidence in gaining market share. Evoke Plc, parent company of 888, reported a 30% increase in Italian income.