Italy’s retail gambling sector faces growing uncertainty as regulatory reforms remain stalled, prompting industry leaders to call for urgent measures to sustain betting shops and gaming venues. With existing concessions for betting, bingo, AWPs, and VLTs set to expire at the end of 2026, operators say the lack of a clear regulatory framework is creating significant challenges for their businesses.
The anticipated reorganisation decree, which was expected to establish new rules and tender processes for land-based gambling, missed its August deadline and has since been shelved. Many in the sector anticipate yet another extension, continuing a pattern that has persisted for years and leaving operators in a state of limbo.
AGSI Calls for Bridging Measures
The Associazione Gestori Scommesse Italia (AGSI), which represents Italian betting shop managers, is urging the government to introduce bridging measures to support the sector until formal tenders can be held. According to AGSI president Pasquale Chiacchio, waiting years for regulatory clarity would put gaming machines, horse racing, and sports betting businesses at risk of closure.
Chiacchio highlighted that while the online gambling market in Italy has already transitioned to a new concession framework, land-based operators are still bound by outdated rules and annual extension cycles. This has created a widening gap between online and retail gambling, both in terms of market share and investment opportunities.
Market Impact and Operator Concerns
Retail gambling remains a significant part of Italy’s market, accounting for around 75% of an industry valued at over €21 billion. However, delays in regulatory reform have led to operational and investment uncertainty. Davide Diodato, CEO of HBG Online, noted that while online licences are issued for nine years, retail concessions are extended on a yearly basis, making it difficult for businesses to plan for the future.
Operators are also concerned that restrictive distance rules, limited opening hours, and rigorous permit requirements are pushing both customers and commercial investment towards the online sector. This trend is reflected in declining tax revenues, with the Ministry of Economy and Finance reporting a 6.3% drop in gaming tax receipts to €3.64 billion in the first half of 2026.
Proposed Solutions and Industry Collaboration
AGSI has proposed using the transition period to revitalize retail gambling venues by allowing the introduction of new products and services through authorised outlets. The association has called for a consultation table involving the government, regulatory authorities, and industry stakeholders to begin drafting the new tender rules. AGSI emphasizes the importance of creating a framework that allows small and medium-sized businesses to compete alongside larger groups, with a more balanced national network and trained staff.
Chiacchio also stressed that enforcement efforts should focus on combating non-compliant operators instead of adding restrictions for licensed shops, warning that a shrinking regulated network could drive more activity to offshore channels.
Broader Industry Frustration
AGSI’s concerns are echoed by other industry groups, including AGIC, whose members feature major operators such as Flutter, Lottomatica, Entain, and Bet365. AGIC has pointed out that repeated extensions to retail concessions have left the land-based market without long-term certainty for nearly a decade.
For more details on the regulatory landscape, visit the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s gambling regulator.
Outlook for Retail Gambling in Italy
With no immediate prospect for comprehensive reform, Italy’s retail gambling sector continues to seek interim support measures to maintain stability. Stakeholders are urging policymakers to act quickly to safeguard jobs, protect tax revenue, and ensure a fair and competitive environment for both retail and online gambling channels.