Italy’s Customs and Monopolies Agency (ADM) has observed a decrease in tax revenue from gambling activities in 2024.
According to its recent Statistical Bulletin, ADM reported collecting €8.05 billion in gambling taxes by the end of September 2024, representing a 6% reduction from the €8.2 billion gathered over the same timeframe in 2023. In the full year of 2023, ADM accumulated €11.62 billion in gambling taxes. If this downward trend continues, 2024 would mark the first year a decline in tax revenues is seen, aside from the pandemic-affected year of 2020.
The bulletin highlighted a significant decline in Q3 2024, where gambling tax revenues dropped by 16% to €2.22 billion, compared to €3.3 billion in Q3 2023. ADM attributed this decrease to a 26% year-over-year reduction in net gambling expenditure, which fell from €5.9 billion in Q3 2023 to €4.35 billion in Q3 2024.
While gambling revenues saw a downturn, the tobacco sector showed robust performance, generating €4.18 billion in Q3 2024, a rise of 5.77% from the previous year.
Within the gambling sector, gaming machines remained the top revenue generator, contributing €910 million (41%) from net expenditure of €1.26 billion. Lotteries and number games came next, providing €870 million (39.08%), followed by betting at €180 million (8.17%), and other games at €260 million (11.64%).
On November 18, 2024, ADM rolled out a revamped licensing framework for online gambling concessions. This significant overhaul is the most substantial change in Italian online gambling regulations since their inception in 2011. The new licenses, valid for nine years, are priced at €7 million each and entail an annual fee of 3% on gross gaming revenue (GGR), minus taxes and player winnings.
Existing licenses have been extended by one year, remaining valid until December 31, 2024, under the provisions of the 2024 Budget. The revised guidelines restrict operators to offering “one app per gambling product type and one website.” ADM has also imposed severe penalties on operators using skin websites to market branded products.
ADM anticipates that approximately 50 operators will seek the new licenses, potentially generating €350 million in concession fees and an additional €100 million annually in fixed license fees.