Italy's Senate has continued its examination of new tax provisions affecting gambling operators, including restrictions on the deductibility of sponsorship costs and changes to the treatment of responsible gaming expenditure.
Article 2-ter of Bill 2036, which was introduced during the measure's passage through the Chamber of Deputies, provides that sponsorship and similar contractual expenses connected to gambling activities prohibited under Italy's advertising rules cannot be deducted for income tax or regional tax on productive activities, known as IRAP.
The provision sits alongside Italy's existing gambling advertising restrictions under the 2018 Dignity Decree. Article 9 prohibits direct and indirect advertising relating to gambling and betting with monetary prizes across channels including television, radio, print, sporting events, websites and social media.
Article 2-ter also changes the tax treatment of certain communications required under Italy's 2024 reorganisation of online gambling.
These include annual investment equivalent to 0.2% of net revenue, capped at €1m ($1.2m) per year, in informational or responsible communication initiatives, alongside campaigns focused on preventing gambling-related harm.
The expenditure would be classified as representation expenses rather than advertising expenses.
The measures apply to expenses incurred from the tax period following the one underway on 31 December 2025. Additional tax revenue generated by the provisions would be calculated annually by the Ministry of Economy and Finance and allocated to Italy's Fund for Structural Economic Policy Interventions.
During the Senate's 22 September session, amendments sought to extend the non-deductibility provisions to commercial affiliate activity, promotion through influencers and content creators, promotional codes, bonuses and links to gambling or betting platforms. Those amendments were rejected.
A separate proposal sought to direct the additional tax revenue towards Italy's pathological addictions fund and regional gambling harm programmes rather than the structural economic policy fund. That proposal was also rejected.
The wider bill had entered Senate consideration after approval by the Chamber of Deputies on 16 September. The Senate began its plenary examination on 22 September, with Article 2-ter among the provisions considered.
Italy's land-based gaming reform, meanwhile, remains unresolved after the Government failed to complete the planned reorganisation by its August deadline. The delay means existing bingo, betting, AWP and VLT concessions face further extensions because new tenders cannot proceed until the regulatory framework is settled.
Italy's gambling advertising restrictions have been in force since 2019 and cover direct and indirect promotion across traditional and digital media
