Italy Gambling Tax: Complete Guide for Bettors (2026)

Tax-Free Winnings from EU-Licensed Operators

For most Italian gamblers, winnings are tax-free when gambling with EU or EEA-licensed operators.

Italy has a favorable system where the tax burden falls on operators rather than players. If you're betting with ADM-licensed Italian operators or other EU-licensed platforms, your winnings come to you without tax deductions.

This applies to:

• Sports betting (bet365, Snai, Sisal, etc.)
• Online casino games
• Poker (tournaments and cash games)
• Bingo

The key requirement: the operator must be licensed within the EU or EEA.

Why Italy Exempts Players

Italy has operated a regulated gambling market since 2006 and was one of the first European countries to license online gambling.

The regulatory framework places the tax burden on operators through:

• Imposta unica: The single gambling tax paid by operators
• License fees: Substantial fees for ADM (Agenzia delle Dogane e dei Monopoli) licenses
• Revenue-based taxes: Percentage of gross gaming revenue

Because operators already pay substantial taxes, Italy doesn't double-tax by going after individual players.

This mirrors the approach in the UK, making Italy one of the more player-friendly jurisdictions in Europe.

ADM-Licensed Operators

ADM (formerly AAMS) is the Italian regulatory authority for gambling. Operating without an ADM license in Italy is illegal.

ADM-licensed operators include:

• Snai
• Sisal
• Lottomatica
• bet365.it
• Eurobet
• William Hill Italy
• Betfair Italy
• And many others

Playing with these operators means:

• Winnings are tax-free
• Operators handle all regulatory compliance
• Your account is protected under Italian law

Identifying licensed operators:

• Look for the ADM/AAMS logo
• Italian sites use .it domains
• License numbers are displayed on the website

Unlicensed and Offshore Gambling

Gambling with unlicensed operators is illegal in Italy. ISPs are required to block access to unlicensed sites.

If you use VPNs or other methods to access offshore sites:

• You're technically breaking Italian law
• Winnings could be considered taxable income
• You lose regulatory protections
• Bank transfers from such sites could trigger inquiries

The practical advice: stick to licensed operators for both legal protection and tax clarity.

Lottery Taxation: Special Rules

Italian lottery winnings have their own tax rules, separate from other gambling:

Lotto, SuperEnalotto, Win for Life, etc.:

Example: SuperEnalotto prize of €10,000

• First €500: Tax-free
• Remaining €9,500: Taxed at 20% = €1,900
• Net prize: €8,100

This tax is withheld automatically before you receive your prize. You don't need to declare it separately.

Gratta e Vinci (scratch cards): Same rules apply. Prizes under €500 are tax-free; above €500, 20% is withheld.

Important: This lottery tax doesn't apply to sports betting, casino, or poker winnings from licensed operators. Only lottery products have the withholding.

Venice and Italian Casinos

Italy has several land-based casinos, with the most famous being in Venice (Casino di Venezia), Sanremo, Saint-Vincent, and Campione d'Italia.

Casino winnings are generally tax-free for players. The casinos themselves pay various taxes and fees, but players don't face additional taxation on their wins.

For large wins, casinos may require identification for anti-money laundering compliance, but this isn't taxation.

Poker in Italy

Italy has a regulated online poker market with ring-fenced liquidity (Italian players only play against other Italians on .it sites, though this has been changing with European liquidity sharing agreements).

Tax treatment:

• Tournament winnings: Tax-free (from ADM sites)
• Cash game winnings: Tax-free (from ADM sites)
• Live tournament prizes: Tax-free

Unlike some countries that distinguish between casual and professional players, Italy's system doesn't require this distinction for tax purposes when using licensed operators.

Professional Gamblers

Italian tax law doesn't specifically categorize "professional gamblers" for taxation purposes.

If gambling is your primary occupation:

• Winnings from licensed operators remain tax-free
• You may have other obligations (pension contributions, etc.)
• Significant regular income might require registration as self-employed
• Consult an Italian accountant for specific guidance

The general principle that licensed gambling winnings are tax-free applies regardless of volume, but related business activities (sponsorships, streaming, etc.) would be taxable income.

Foreign Gambling Winnings

Italian residents are subject to worldwide taxation. However, the treatment of foreign gambling winnings is nuanced:

EU-licensed operators (Malta, UK, Gibraltar, etc.): Generally treated the same as Italian operators under EU principles. Winnings are typically tax-free.

Non-EU gambling: Could potentially be taxable. The US, for example, withholds 30% from Italian winners' prizes above certain thresholds.

International tax treaties: Italy has treaties with many countries that may allow recovery of foreign withholding or prevent double taxation.

If you gamble internationally, especially outside the EU, consider consulting a tax professional.

Wealth and Income Considerations

While gambling winnings aren't taxed directly, they can affect your financial picture:

Monitoraggio fiscale (tax monitoring): Large foreign assets or accounts must be declared on the RW section of your tax return. This includes foreign gambling accounts with significant balances.

Source of funds: Banks may inquire about large deposits. Having documentation of gambling wins (account statements, winning tickets) helps demonstrate legitimate sources.

Wealth tax: Italy has IVIE (tax on foreign property) and IVAFE (tax on foreign financial assets), but these generally don't apply to gambling winnings themselves.

Record Keeping

Even with tax-free treatment, maintain records:

• Account statements from gambling operators
• Lottery tickets and payout receipts
• Casino win slips
• Documentation of significant wins

This protects you in case of:

• Bank inquiries about deposits
• Tax authority questions
• Disputes with operators

Italian operators are required to maintain records and can provide statements upon request.

Reporting Requirements

For licensed operator gambling:

• No reporting required on tax returns
• Winnings don't appear in your dichiarazione dei redditi
• No IRPEF (income tax) applies

For lottery winnings:

• Tax is withheld at source
• No additional reporting needed
• The lottery organization handles everything

For professional activities:

• If you provide gambling-related services (coaching, content), that income is taxable
• Sponsorship income is taxable
• Distinguish between gambling wins (tax-free) and gambling-adjacent business (taxable)

Common Questions

Do I pay tax on sports betting winnings?

No, if you're using an ADM-licensed operator. Winnings are tax-free.

What about poker tournaments?

Tax-free from licensed operators, both online and live (in Italy).

Are casino bonuses taxed?

No. The bonus itself and winnings derived from it are tax-free (from licensed operators).

What if I win a large amount?

Large wins from licensed gambling remain tax-free. You may face anti-money laundering questions but not tax obligations.

Can I deduct gambling losses?

There's nothing to deduct against since winnings aren't taxed. You cannot deduct losses against other income.

What about cryptocurrency gambling?

Italian crypto tax rules are evolving. The gambling itself would follow normal rules (use licensed operators for tax-free treatment), but moving crypto in and out of gambling sites could have capital gains implications.

Historical Context

Italy liberalized its gambling market in 2006, becoming a European leader in regulated online gambling. The system was designed to:

• Combat unlicensed gambling
• Protect consumers
• Generate tax revenue through operator taxation

The player-friendly tax treatment was intentional to encourage use of licensed platforms.

Key Takeaways

• Gambling winnings from EU/EEA-licensed operators are tax-free in Italy
• ADM-licensed operators are the safest choice for Italian players
• Lottery prizes over €500 are taxed at 20% (withheld at source)
• Unlicensed gambling is illegal and could create tax complications
• Professional gamblers still benefit from tax-free treatment on winnings
• No reporting required for licensed gambling winnings
• Foreign gambling may have different implications depending on jurisdiction
• Keep documentation of significant wins for banking compliance

Sources:

• ADM - Agenzia delle Dogane e dei Monopoli
• Agenzia delle Entrate
• Industry Wired - Gaming Taxation