Italy Plans to Place Video Game Venues Under Gambling Regulator Supervision

Italy’s gambling regulator, Agenzia delle Dogane e dei Monopoli (ADM), could soon oversee esports venues under a new proposal in the country’s 2027 budget bill. According to the proposed legislation, LAN gaming halls would fall under a licensing and taxation regime administered by the ADM. However, industry stakeholders have strongly opposed this measure. The Sector Could Face a Sudden Shock Article 25 of the proposed legislation covers venues where customers pay to use networked gaming equipment. These establishments, commonly known as LAN halls or esports centers, allow solo or group players to enjoy their favorite video games. They also host local esports tournaments. The new bill would bar all betting on their premises, even though wagering is rarely, if ever, the focus of their activities. According to Article 24, operators must obtain ADM authorization every two years. The proposed fees include EUR 200 ($224) per gaming device, EUR 1,000 ($1,120)per venue, EUR 2,000 ($2,240) per game, and EUR 10,000 ($11,200) per online platform. Each venue would also need at least 20 gaming stations. The bill also establishes an annual tax base of EUR 15,000 ($16,830) per device or station, with an 8% entertainment tax. The proposed rules extend beyond licensing and taxes. The ADM would set the requirements for platforms, gaming centers, and permitted games. It would also set tournament rules, participation fees, and prizes. A levy of up to 8% on tournament entry fees would help finance oversight activities. Operators must also maintain logs of online activity on their PC terminals for at least five years. Stakeholders Called the Government’s Projections Unrealistic The Italian Interactive Digital Entertainment Association (IIDEA), which represents the country’s video game industry, called for the provision to be scrapped. In a November 6 statement, the organization argued that the proposed costs and administrative requirements threatened to stifle a sector still in its infancy, warning the bill could do irreparable damage to the industry. Revenue projections have also drawn scrutiny. A technical report states that Italy could have 200 LAN gaming centres by 2027 and 2,300 by 2028, and expects more than EUR 66 million ($74 million) in tax revenue and fees. However, IIDEA counters that Italy only has around 70 LAN centers, and many do not meet the 20-machine minimum. With the Italian esports sector worth roughly EUR 32 million ($35.9 million) in 2026, the government’s projections appear unrealistic. IIDEA also questioned whether Article 24 was compatible with EU law and data protection requirements. The organization was especially apprehensive about keeping detailed records of user activity. With the bill’s parliamentary examination just beginning, IIDEA contends that any regulatory changes must be based on realistic data and include input from the businesses it will affect.