Italy’s Prime Minister Giorgia Meloni has opted against the long-awaited land-based gambling reform. She recently scrapped the Decreto di Riordino del Gioco Fisico from the government’s legislative agenda for 2026, which leaves the country’s retail gambling sector in regulatory uncertainty.
The PM’s decision was anticipated, as the decree had been removed from the Council of Ministers’ policy agenda. It ends nearly two years of talks between the Italian government, regional authorities and municipalities over the future licensing and regulation of betting shops, gaming halls and bingo venues, following the overhaul of Italy’s online casino market in 2025.
Instead, the government will focus on finalising the 2027 Budget, along with broader fiscal changes, while also extending the current retail concession period by another year.
Meloni Drops Long-Awaited Casino Overhaul
According to Italian media, Meloni declined to approve the reform decree for inclusion in the 2027 Budget package last week. The decision essentially put negotiations between the Ministry of Economy and Finance, Italy’s Customs and Monopolies Agency, and regional authorities to a halt.
The reform sought to upgrade Italy’s fragmented system of regional gambling rules with a national licensing framework overseen by the ADM. Officials hoped the changes would end years of legal disputes caused by differing local restrictions governing venue locations, operating hours and licensing requirements.
However, government sources shared that Meloni was not pleased with the proposed compromise since it continued to leave significant authority over gambling venues in the hands of regional and municipal governments.
The PM’s cabinet also assured that the existing protections against gambling venues near schools and other sensitive locations would remain in force. Undersecretary to the Presidency of the Council Alfredo Mantovano reportedly confirmed that any future decree would not weaken the current regional minimum-distance rules.
Regional Powers Remain Key Point of Discussion
At the heart of the stalemate are the so-called “distanziometro” regulations, which allow regional and local authorities to impose their own restrictions on where gambling locations can operate.
The MEF wanted to harmonise these rules by introducing national standards covering minimum distances, opening hours, venue certification, concession requirements and technical standards for gaming machines.
However, regional governments opposed the proposals, arguing that gambling regulation remains an important public health issue and did not want to have their authority reduced. The impasse is yet another example of the long-running constitutional tension between Rome and regional administrations over responsibility for key areas of public policy.
The failure to reach an agreement also complicates plans for a new round of retail gambling concessions. Previous licensing processes have frequently been challenged because operators struggled to identify locations that complied with varying local regulations.
Extending Existing Concessions
With the postponement of the reform, MEF and ADM will still adhere to the existing concessions on betting shops, gaming machines and bingo halls for another 12 months while a longer-term solution is being reviewed.
Experts predict the current concession regime to be extended again rather than replaced with a new licensing framework in the near future.
The delay also means Italy will miss out on significant expected revenue from new licence auctions. The Treasury had estimated that fresh concession tenders could generate between €1.8bn and €2bn in upfront licence fees while providing greater legal certainty for operators.
The broader reform package was also expected to introduce a national register of gambling operators, harmonised advertising rules and updated technical standards for next-generation gaming machines.
Falling Revenues Apply Pressure
The political setback comes as the country’s land-based casinos continue to face financial pressures. In the first half of 2026, gaming tax revenues fell 6.3% from the prior year to €3.64bn, while indirect tax receipts from lotteries and other gambling activities declined 8.4% to €3.07bn.
Meanwhile, gaming machines, which are the largest source of gambling tax revenue, generated around €2.47bn, or 7.3% less than the same period in 2025.
The weaker fiscal performance is expected to intensify concerns about the long-term sustainability of Italy’s retail gambling sector, where operators continue investing under temporary concession extensions rather than a stable licensing system.
Industry Voices Concerns
The uncertainty has drawn criticism from operators, many of whom have spent years awaiting clarity over the retail gambling framework.
Lottomatica Chairman and CEO Guglielmo Angelozzi shared that he had anticipated another delay, arguing that the lack of progress prevents the industry’s next phase of consolidation.
“Whether you have an agreement or not, basically nothing changes. The outcome is the same in the next two to three years,” Angelozzi said.
Industry association AGIC, which represents operators including Flutter Entertainment, Lottomatica, Entain, bet365 and Brightstar, has previously warned that repeated concession extensions have deprived Italy’s regulated in-person gambling market of long-term certainty, which can deter investment.
Budget is the Priority Over Reform
The focus will now shift to the 2027 Budget, where another extension of existing concessions appears to be more than likely.
With parliamentary elections in 2027, Meloni seems focused on fiscal consolidation rather than reopening one of the coalition’s most politically divisive regulatory debates.
The decision leaves Italy’s land-based gambling industry in regulatory limbo while courts continue dealing with disputes arising from successive concession extensions and the ongoing conflict between national licensing objectives and regional planning rules.
