Italy’s plan to reorganize its land-based gambling sector has hit a wall, with the national government unable to finalize terms of a reform that has been under negotiation for two years.
The breakdown occurred between the Ministry of Economy and Finance (MEF) and the Conference of Regions and Autonomous Provinces. The final version of the Decreto di Riordino del Gioco Fisico was reportedly rejected by the office of Prime Minister Giorgia Meloni last week and returned to the MEF for additional review.
Alfredo Mantovano, Meloni’s Undersecretary to the Presidency of the Council, told AgiProNews that any decree ultimately approved would not alter the minimum distance protections currently enforced by regional authorities. Rules that bar gambling venues from operating near schools and other designated sensitive locations will remain in place.
The MEF had sought to consolidate Italy’s fragmented regional legislation into a single set of national standards covering minimum distances, operating hours, venue certification and concession requirements. Regional governments have opposed ceding this authority, citing gambling’s status as a public health matter.
Following the relaunch of Italy’s online gambling framework in November 2025, Meloni had aimed to complete the retail sector restructuring before the government’s fiscal delegation powers expire on August 29.
That timeline now appears unlikely to hold. Even if the Council of Ministers approves the decree, it would still require sign-off from the State-Regions Conference and parliamentary committees.
The stalled talks also leave the planned rollout of new retail gambling concessions in question. Discussions prior to last week’s breakdown had centered on finalizing compensation terms with the Conference, which represents Italy’s 20 autonomous provinces and 110 municipalities.
Without resolution on the regional distance restrictions, new tenders for betting shops, slot machines and bingo halls would be difficult to launch, a scenario that has previously led operators to challenge concession processes over an inability to identify compliant sites.
The delay carries fiscal consequences for the government. New concession auctions had been projected to generate between €1.8 billion and €2 billion ($2.07 billion-$2.30 billion) in upfront licensing revenue.
The broader reform package was also intended to establish a national definition of sensitive locations, harmonized operating hours, mandatory venue certification, a national operator registry, updated advertising rules and technical standards for next-generation gaming machines.
In the interim, the government will extend existing retail gambling concessions through December 31, 2026.
Morgan Stanley has suggested that, absent renewed political negotiations, Italy could push the retail overhaul back by another one to two years while state and regional authorities continue seeking common ground.
AGIC, whose membership includes Flutter Entertainment, Lottomatica, Entain, bet365 and Brightstar, has cautioned that repeated concession extensions have left the regulated retail market without long-term certainty for close to a decade, a dynamic it says has discouraged investment and delayed modernization.
With Parliament set to reconvene in September, Meloni is expected to focus on passing the 2027 Budget, leaving limited room to revisit one of her coalition’s more contentious regulatory disputes ahead of elections in 2027.
Leaving the matter unresolved, however, risks further friction with the judiciary: federal and regional courts already face a backlog of cases tied to concession extensions and conflicts between state licensing objectives and municipal planning rules.