Italian trade association EGP-FIPE have outlined a 6.2% year-on-year fall in gaming tax revenues to €4.29bn for the first seven months of 2026. Citing data from the Ministry of Economy and Finance (MEF), the associations said declining tax revenue from gaming machines accounted for much of the contraction.
According to the MEF’s technical analysis, the decline in machine gaming appears to coincide with growing consumer interest in other forms of gambling, particularly online gaming.
Online gaming revenue has nearly doubled in recent years, but this growth has not resulted in a proportional increase in tax revenues.
By comparison, gaming machines account for approximately 16% of Italy’s total gambling activity but, according to industry sources, generate almost half of the sector’s tax revenues.
The associations argue the decline highlights the need to strengthen the country’s physical gaming network while continuing to support technological development. However, this will not be happening any time soon since the planned regulatory land-based gaming reorganisation failed to meet its recent deadline.
The uncertain future of the new concession tenders is a major issue for the sector; these cannot be issued until the land-based regulatory reshuffle is complete. The reorganisation was intended to establish regulatory principles for new licences covering AWPs, VLTs, betting shops and bingo halls.
Repeated extensions of existing licences have allowed the market to continue operating yet have also created uncertainty for operators and limited incentives for long-term investment. At the same time, operators will continue to face fragmented regional and municipal rules, mainly about distance requirements and operating hours.
Last week, Italian Lottomatica agreed to absorb Spanish Cirsa through an all-share cross-border merger that will combine two of Southern Europe’s largest gambling groups
