Public gambling and tax: Senator Garavaglia’s proposal for Italy
In the evolving regulatory landscape of Italy’s public gaming sector, the topic of fiscal revenue sharing between the State, Regions, and Municipalities has returned to the forefront. A clear and authoritative appeal comes from Senator Massimo Garavaglia of the Lega party, President of the 6th Senate Committee on Finance and Treasury. During a parliamentary session on amendments to the delegated legislation on gambling, he argued that sharing tax revenues from gambling is the only way to overcome current stagnation and strike a sustainable balance between economic, social, and public health considerations.
According to Garavaglia, engaging local authorities in the distribution of tax proceeds would pave the way for a more collaborative, pragmatic, and effective governance of the legal gambling network.
A key pillar of the legal Italian economy
The Senator presented a clear picture of a sector that, despite being largely overlooked by mainstream discourse, continues to support a significant portion of the Italian economy. Over 18 million citizens – more than 36% of the population – take part in gambling activities at least once a year. The total legal gambling turnover reaches an impressive €160 billion annually, of which €140 billion is returned to players as winnings. The State collects between €11 and €12 billion in tax revenues.
These figures reflect the economic centrality of the regulated gaming sector, a reality that deserves to be approached with more than moralistic or ideological arguments.
A structural shift: the rise of digital gambling
Garavaglia also highlighted the industry’s ongoing structural transformation, particularly the shift from physical venues to digital platforms. Online gambling now accounts for 60% of total activity, a share that continues to grow. In contrast, land-based gambling has dropped to 40% and is declining further.
Yet, it is precisely the physical network that remains the focal point of political debate. The reason, Garavaglia explains, is straightforward: land-based gambling is visible. It is physically present within communities, and thus attracts public scrutiny and political pressure from local administrations, media, and advocacy groups.
Institutional gridlock: a lack of coordination
One of the biggest obstacles to updating the regulatory framework for land-based gambling is the ongoing lack of alignment between national, regional, and municipal authorities. Years of attempted negotiations have produced little in the way of concrete results. Garavaglia’s proposed solution is unequivocal: revenue sharing is the key to breaking the impasse.
If municipalities and regions were to receive a direct share of gambling tax revenues, the rules would no longer be imposed from the top down. Instead, they would emerge from locally informed, balanced decisions, made by those who also bear financial responsibility for their communities.
Shared accountability, less ideological policy
Garavaglia presents revenue sharing as a tool to promote accountability and reduce ideological bias in regulatory decisions. It is all too easy, he argues, to impose restrictions when one has nothing at stake. However, when local authorities also benefit from the revenue, decision-making becomes more nuanced, responsible, and outcome-driven.
The aim is not to encourage gambling indiscriminately, but rather to build a system that is transparent, regulated, and socially sustainable, balancing economic interests with necessary safeguards.
Tackling gambling addiction and illegal markets
The Senator also addressed the issue of problem gambling, emphasising the importance of balancing individual freedom with collective responsibility. Excessive gambling harms not only the individual, but also their family and the broader community.
He praised several reputable online platforms that deploy behavioural algorithms to monitor players and intervene when limits are exceeded. These mechanisms can suspend or even block user access, offering a virtuous model of technology-enabled player protection.
Nevertheless, the real threat, Garavaglia stressed, lies in illegal gambling. Operating outside of all regulatory frameworks, the illegal market provides no consumer protection and generates no tax revenue. Paradoxically, overly restrictive regulation of legal gambling can push players into these shadow markets, exacerbating the very issues the law seeks to solve.
A new social pact for the future of legal gambling
Garavaglia’s remarks reignite an essential conversation about public gambling in Italy – a sector too often relegated to the margins of political discourse, despite its economic weight and societal impact. His call to action invites a new pact between institutions, grounded in shared responsibility, transparency, and pragmatism.
The future of regulated gambling in Italy hinges on this shift – toward modern, cooperative governance that prioritises both public welfare and financial sustainability. Ideological rigidity must give way to reality-based, evidence-driven policymaking.
This article was first published in Italian on 6 August 2025.
