Italy's Budget Bill Would Put LAN Venues Under Its Gambling Regulator
Italy's draft 2027 budget bill would place LAN gaming venues under the Customs and Monopolies Agency (ADM), the country's gambling regulator.
Article 25 sets out biennial ADM authorisations, a flat-rate entertainment tax and operating rules for venues that offer video games and esports, even though cash prizes and winnings are excluded.
IIDEA, the association that represents Italy's video game industry, has asked parliament to delete the article in full.
Anyone who follows esports betting markets will want to watch how the dispute plays out.
What Article 25 Would Require
According to the draft text published by Italian gambling news agency AGIMEG, the article amends Article 110 of the Consolidated Law on Public Security to cover so-called LAN rooms.
These are venues that offer games of pure skill and entertainment without cash prizes, delivered as digital content via remote access on online platforms. Consoles, simulators and PCs count as covered devices.
Venues would need an ADM authorisation lasting two years, and each venue must have at least 20 gaming stations. The draft sets upfront payments of €200 per gaming device, €1,000 per venue, €2,000 per game offered and €10,000 per online platform used.
Games must carry a PEGI age rating or an equivalent; minors may enter but may use only games suited to their age group, and platforms must retain a history of online activity for at least five years.
ADM would also set the rules for tournaments, including participation fees and maximum prize values. It could charge a supervisory contribution of up to 8% of participation fees.
The Tax Maths
The entertainment tax is set at 8% of a flat annual taxable amount of €15,000 per device or gaming station, which works out to €1,200 per station per year.
For large simulators, the taxable amount rises to €25,000. A venue running the minimum 20 stations would therefore owe €24,000 a year in tax alone, before the authorisation payments.
Venues already operating on the day the article takes effect would have 60 days to file a self-declaration and could continue trading. At the same time, ADM adopts its implementing measures, subject to payment of the tax.
Government Estimates
The bill's technical report states that reliable data on the number of LAN venues does not exist. AGIMEG reports that it projects 200 venues in 2027, bringing in about €5.87 million.
From 2028, it assumes 2,300 venues, one for every municipality with more than 5,000 inhabitants, and about 46,000 stations.
On that basis, it estimates around €55.2 million a year in entertainment tax alone from 2028.
IIDEA's Objections
IIDEA published its position on November 10, 2026, as carried by trade publication PressGiochi. The association says Article 25 goes beyond new levies and establishes a comprehensive regulatory framework that treats video games as a form of regulated public gaming.
It describes video games as products of the cultural and creative industries, and esports as competitions based on players' skill and the rules of each title.
It also says that a reform of this scale should follow its own legislative path and consult with the sector, rather than be introduced through a budget law.
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On the numbers, IIDEA says its own estimates put the number of working LAN venues in Italy at about 70, of which only around 20 have the 20 stations required by the draft.
It values the Italian esports sector at between €32 million and €35 million in 2026, rising to as much as €60 million by 2030. By that measure, the tax revenue projected for 2028 would exceed the value of the whole industry.
The association also warns of a heavy burden on small business owners and associations that run venues, and of knock-on effects for publishers, platforms and tournament organisers.
What To Watch
The draft is still going through parliament, and the final text may change. If Article 25 survives, ADM's implementing measures would set the practical rules for tournaments and venues.
It is a reminder that regulators are looking closely at where video games and gambling-style oversight overlap, which is why responsible gambling bodies and operators will keep an eye on the debate.
The draft does not authorise betting or cash prizes on venue premises.
