Italy’s Gross Gaming Revenues Reaching €21.5 billion

Market Growth Outpaces European Competitors

Italy’s gambling industry has experienced explosive growth over the past two decades, establishing the country as Europe’s largest gambling market ahead of the United Kingdom, Germany, and France. Total gambling spend reached €157.4 billion in 2024, representing a dramatic increase from approximately €25 billion in 2004.

The market saw particularly strong acceleration following the COVID-19 pandemic, with year-on-year growth rates exceeding 15% as online and mobile betting platforms expanded their reach across the Italian population.

Gross gaming revenues—the difference between amounts wagered and amounts won by players—hit €21.5 billion ($25 billion) in 2024, reflecting the scale of Italy’s betting industry.

Tax Revenue Plateau Raises Questions

Despite the substantial growth in gambling activity, government tax collections have not kept pace with market expansion. The Italian state collected €11.5 billion in gambling taxes during 2024, a slight decrease from €11.6 billion in 2023.

This represents a concerning trend for government finances: while total gambling volume jumped from €25 billion to over €157 billion between 2004 and 2024, tax intake rose only from approximately €7 billion to €11.5 billion over the same period.

Emiliano Contini, a campaigner from anti-addiction cooperative Il Cammino, questioned the value proposition for the state. “From 2004 to 2024, total gambling jumped from around 25 to more than 157 billion euros, but the tax intake rose only from about 7 to 11.5 billion euros: is the game really worth the candle?” he said.

Online Shift Reduces Tax Efficiency

Industry experts attribute the tax revenue plateau to a fundamental shift in gambling behavior. Online gambling, which is subject to lower tax rates than physical gambling, has grown significantly at the expense of more heavily taxed options such as slot machines and scratch cards.

This structural change has created a situation where the market continues expanding while government revenues remain relatively flat, raising policy questions about taxation frameworks in the digital gambling era.

For context, gambling taxes now represent a significant revenue stream comparable to other regulated sectors: €11.5 billion from gambling versus €14.5 billion from tobacco and €1.4 billion from alcohol in 2024.

Industry Outlook Remains Strong

Major gambling operators continue to express confidence in Italy’s long-term growth potential. National market leader Lottomatica enjoyed a fivefold revenue increase from 2020 to 2024 and earned a spot on Milan’s blue-chip stock index in September.

“We are doing very well in the Italian market, which is a great market both for the consumer dynamics and regulation. We think this trend is a long-term trend and will continue for a very long time,” Lottomatica CEO Guglielmo Angelozzi said in July.

International players have also invested heavily in the Italian market. Flutter, the world’s largest online gambling company, acquired domestic player Sisal in 2021, signaling continued foreign confidence in Italy’s gambling sector.

Government Takes Pragmatic Stance

Italian authorities have adopted what they describe as a pragmatic approach to gambling regulation, balancing economic benefits against social concerns.

“Italy takes a pragmatic approach towards gambling, recognising the contribution the industry makes to jobs and the economy, and is happy to support its growth, while also carefully monitoring the risks,” a senior government official stated.

Mario Lollobrigida, head of the gambling department at the Customs and Monopolies Agency, warned that excessive regulation could backfire by pushing gamblers toward illegal operators. “We estimate that there is an underground, illegal market now worth over 10% of the legal market,” he said last month.

With approximately 43% of Italy’s adult population—some 20.5 million people—gambling at least once in 2022, the industry has become deeply embedded in the country’s economy. The challenge for policymakers will be addressing the declining tax efficiency while maintaining regulatory oversight in an increasingly digital marketplace.

Source: Reuters