Taxation: 20-25% GGR by segment

Italy has built one of the most transparent models of fiscal regulation of online gambling in the EU. Since 2011, the key principle has been to pay tax on gross gaming income (GGR), rather than on betting turnover. Historically, base rates for online verticals have fallen within the 20-25% range, varying by product type. From 2024-2025, as part of the "game reform," rates were updated, but the logic of "GGR tax + additional fees" remained.

Current betting picture (online)

Sports and virtual species betting: 24.5% GGR.

Casino/slots, poker (cash and tournaments), bingo: 25.5% GGR.

Betting exchange: ~ 20% GGR (separate mode below casino/sports bets).

Additionally, for new online concessions, there is an annual fee ~ 3% of GGR/NGR (essentially "annual fee" on top of the base tax). This increases the "effective" fiscal burden and requires consideration of the P&L levy.

Legal support and administration

Supervision is carried out by ADM (Agenzia delle Dogane e dei Monopoli): it also holds contests for online concessions, publishes technical standards and administers fees. Reform 2024 (D.Lgs. 41/2024) restarted the rules of distance games, securing 9-year concessions and updating fiscal parameters.

How GGR is considered and what gets into the base

GGR = Bets − Winnings calculated on each vertical.

Individual fees and bonuses are accounted for under ADM/Internal Revenue Service rules; for digital tax (DST) in 2025, the base was specified (for example, exclusion from the calculation of bonuses for DST purposes). This does not change the GGR tax itself, but it is important for the aggregate fiscal burden.

Calculation examples (simplified)

• Bets €10 million, winnings €9 million → GGR = €1 million
• Tax 25.5% → €255 thousand + annual fee ~ 3% (€30 thousand) = €285 thousand (excluding other contributions/payments).

• Bets €20 million, winnings €18.5 million → GGR = €1.5 million
• Tax 24.5% → €367.5 thousand + annual fee ~ 3% (€45 thousand) = €412.5 thousand.

• GGR €0.8 million, 20% tax → €160 thousand (annual fee see concession terms).

Impact on operator's economy

Vertical margin: with close RTP, the real margin depends on the tax rate (24.5% vs 25.5%) and the annual fee. The breech vertical traditionally shows a more stable GGR, but it is also taxed slightly higher.

Pricing of offers: changes by + 0.5 percentage points. under the budget law-2025 shift the "payback threshold" of bonuses and marketing, especially in sports and slots.

Licensing and entry barriers: a fixed concession value (about €7 million for 9 years vertically/brand) plus GGR tax and 3% annual fee objectively consolidate the market.

Historical Context: 2011 to 2025

2011-2018: gradual leveling of rates by segments, GGR tax is fixed as a basis.

2019-2023: spot rate corrections and tighter advertising frameworks; the range for online verticals is on average 20-25%.

2024-2025: Reform (D.Lgs. 41/2024) and budget-2025: + 0.5 percentage points for sports/virtual and casino/poker/bingo; strengthening the role of concessions and annual fees.

What is important to consider players and affiliates

Players: In most online verticals, the tax burden falls on the operator via GGR; separate modes are applicable to lotteries/jackpots, etc. (specify the current norms).

Affiliates: increasing rates and annual fees stimulates brand consolidation and more conservative CPA/RevShare models; waiting - fewer "small" offers, more demand for high-quality traffic.

Inference. The Italian model of online gambling taxation has historically been built around the 20-25% GGR corridor, with vertical variations. Today, the rates are slightly higher (about 24.5% for sports and 25.5% for casino/poker/bingo), plus there is an annual collection of about 3% GGR - in total, this sets high requirements for the effectiveness of the product line, retention and compliance, but ensures predictability and fiscal stability of the market.