Italy’s gambling regulator set to oversee esports halls
Italy’s 2027 budget bill would extend the reach of gambling regulator ADM into esports, bringing LAN gaming halls under a licensing and tax regime modelled on the one it applies to betting and slots. The measure, Article 25 of the bill, has drawn opposition from IIDEA, the association representing Italy’s video game industry. It has asked the government to withdraw the provision, arguing the costs are disproportionate for a sector still in its growth phase.
LAN halls, also known as gaming centres or esports arenas, are venues where customers pay by the hour to play networked video games, often in local tournaments. They offer no cash prizes, and the bill explicitly bans betting on their premises. Common in parts of Asia, they remain a niche business in Europe.
Gambling-style supervision
Under the bill, halls would need ADM authorisation and a minimum of 20 gaming stations. Each station would be taxed on a deemed annual income of €15,000, or €25,000 for large simulators, at an 8% entertainment tax rate. That equates to roughly €1,200 per PC a year, regardless of actual revenue.
Operators would also pay authorisation fees of €200 per device and €1,000 per hall, and have to retain activity logs for at least five years, Gli Stati Generali reports.
The provision sits alongside the bill’s main gambling measures, including the higher levy on slots and VLTs and the extension of betting and machine concessions to 2029.
Forecasts versus market reality
The government’s technical report assumes there will be 2,300 halls by 2028, roughly one for every town with more than 5,000 inhabitants. On that basis, it estimates the tax could raise about €55.2m a year from 2028, plus more than €10m in fees.
The current market is a fraction of that. IIDEA estimates Italy has about 70 LAN centres, of which only around 20 meet the 20-station minimum. It values the entire Italian esports sector at €32m-€35m in 2026, below the annual tax take the government projects.
The association also points out that the technical report itself acknowledges there is no reliable data on LAN halls, and wants the industry consulted before any new obligations are introduced.
The bill is now before the Chamber of Deputies, where amendments are due by 17 November.