Italy's 2027 budget leans on gambling for about €700 million, and reports point at lotteries and online
Reports on 28 October 2026 said Italy's gambling sector could fund around €700 million of the 2027 budget through the lottery commission and online gaming, not retail concessions. The reporting was pre-Cabinet and other reports describe different options, so the final text may differ.
South Africa is working out how to tax online gambling, with the Treasury pointing to its February 2027 budget. Italy shows how fast governments reach for gambling revenue and how contested the split between land-based and online operators becomes. It is a warning that tax design shapes which operators can afford a licensed market, which in turn affects player protection.
What was reported
Italy's Cabinet was due to meet on 28 October 2026 to approve the 2027 budget. iGaming Business, citing the financial daily Milano Finanza, reported that gambling's roughly €700 million share could come from the aggio, the commission on lottery sales, and from online gaming. Earlier reports had said the mechanism was undecided.
The €700 million is a rounded figure. iGaming Business said the draft budgetary plan sent to Brussels puts gambling's contribution at €718 million in 2027 and 2028 and €478 million in 2029.
Why the detail is uncertain
This is pre-Cabinet reporting. Other Italian outlets have described scenarios built around a rise in PREU, the levy on gaming machine stakes, and more expensive extensions of concessions. Some reports said a smaller PREU increase was meeting resistance inside the governing majority.
There are also legal questions. The Lotto concession was re-awarded in 2025 for nine years at a fixed 6 per cent aggio, so changing the rate mid-concession could be difficult. Online licences under the regime that began in November 2025 already carry a €7 million fee and a 3 per cent annual concession fee on net margin, according to the same report.
What it means for South African players
Nothing here changes South African law. The useful point is that tax and licensing are linked. A licensed market only works if operators can afford to be in it, and Italy's debate shows how tense that balance gets.
South Africa does not currently license online casino games, so players using offshore sites sit outside any such system. Being able to open an account is not the same as being protected. Gambling carries real risk and should be treated as entertainment.
What to watch next
Watch for the published budget text, which will show where the burden actually lands, and for its passage through parliament. Our earlier report on South Africa's online gambling tax plans is linked below for comparison.