Italy’s government is advancing plans to bring esports halls under the regulatory authority of ADM, the country’s gambling regulator, according to the latest provisions in the 2027 budget bill. This move could significantly impact the operation and growth of LAN gaming venues across the Italian market.
The proposal, which falls under Article 25 of the budget bill currently before the Chamber of Deputies, introduces a licensing and tax regime for esports halls that mirrors the framework already applied to betting shops and slot machine venues.
Key Details of the Proposed Regulatory Changes
If approved, the new rules would require all LAN halls—venues where customers pay to play multiplayer video games on-site—to obtain ADM authorisation. To qualify, each venue must operate at least 20 gaming stations. Each station would be subject to an 8% entertainment tax, calculated on a presumed annual income of €15,000 per device, or €25,000 for large simulators. This would result in an estimated tax of €1,200 per PC each year, regardless of the venue’s actual earnings.
In addition to taxes, operators would need to pay an authorisation fee of €200 per gaming device and €1,000 for each hall. The legislation also mandates that operators keep detailed records of activity logs for a minimum of five years, as reported by Gli Stati Generali.
Industry Concerns and Sector Impact
The Italian Interactive Digital Entertainment Association (IIDEA), which represents the country’s video game industry, has voiced strong concerns regarding the proposed framework. IIDEA argues that these obligations are excessive for an emerging sector, especially when most venues are small businesses with limited resources. The association is urging the government to consult with the industry before implementing the new requirements.
According to IIDEA, the Italian market currently hosts around 70 LAN centres, with only about 20 meeting the minimum threshold of 20 gaming stations. This stands in contrast to the government’s estimate of 2,300 halls by 2028, a figure used to project an annual tax revenue of €55.2 million, plus over €10 million in fees. IIDEA points out that the entire Italian esports market is valued at just €32-35 million in 2026, well below the anticipated government tax haul.
No Betting or Cash Prizes Involved
It is important to note that the proposed regulation clearly prohibits betting activities and cash prizes within LAN halls. These venues operate as pay-to-play spaces for local tournaments and recreational gaming, rather than as gambling establishments.
Next Steps in the Legislative Process
The budget bill, including the esports hall provisions, is now under review by the Chamber of Deputies. Lawmakers have until 17 November to propose amendments. The outcome will determine whether ADM’s oversight will extend to Italy’s esports venues, potentially reshaping the future of the country’s gaming sector.
For further details, the official budget bill and updates can be found via the ADM website.
As the debate continues, stakeholders across Italy’s gaming and esports industries will be watching the legislative process closely to assess its impact on their operations and the broader market.