The Italian Customs and Monopolies Agency (ADM) has reported a significant reduction in tax revenues derived from Italian gaming operations in 2024. According to the latest ADM Statistical Bulletin, as of September 30, 2024, €8.05 billion has been collected in gaming taxes.
This value represents a 6% decrease compared to the €8.2 billion accumulated in the same period in 2023. In the entire year 2023, total tax revenue from gaming reached €11.62 billion.
If the current trend persists, 2024 could become the first year, excluding 2020 due to the pandemic, that ADM will face a drop in tax revenues.
Decline in the third quarter
The bulletin pointed out that in the third quarter of 2024, gaming tax revenues fell 16% to €2.22 billion, compared to €3.3 billion in 2023.
This decline was attributed by ADM to a 26% reduction in net gaming spending. Thus, they went from €5.9 billion in the third quarter of 2023 to €4.35 billion in the same period of 2024.
Although gaming revenues declined, the tobacco sector performed strongly, it generated €4.18 billion in the third quarter of 2024. This represents an increase of 5.77% year-on-year.
In betting, gaming machines remained the main source of revenue. They represented €910 million, or 41% of net expenditure of €1.26 billion. Then lotteries and numbers games added €870 million, or 39.08%.
Furthermore, bets brought in €180 million, equivalent to 8.17%. Finally, other games totaled €260 million, corresponding to 11.64%.
Games in Italy: new licensing processes
On November 18, 2024, ADM introduced a new licensing scheme for online gaming concessions. This revamp is the most significant change to Italian online gaming regulation since its inception in 2011.
The new licenses, valid for nine years, cost €7 million each and include a 3% annual fee on gross gaming revenue, excluding taxes and winnings.
ADM has extended existing licenses for one year, granting validity until December 31, 2024, as per the 2024 Budget. The updated rules limit operators to offering “one application per gaming product type and one website.”
Additionally, Italy’s Customs and Monopolies Agency has imposed severe penalties on operators who use skin sites to promote products irregularly.
The aim of the initiative is for around 50 operators to apply for new licenses, which could generate €350 million in concession fees and €100 million annually in fixed license fees.
