Italy denies tax deductions for gambling sponsorships banned by Decreto Dignità
Decree-Law 153/2026, in force 27 August 2026, made spending on sponsorships banned by the Decreto Dignità non-deductible from IRES and IRAP.
By Oliwer Brewitz, Head of Marketing
Key changes
- Sponsorships linked to gaming operators' information or comparison brands no longer deductible for IRES and IRAP
- Decree 41/2024 responsible-communication investments treated as representation expenses
- Applies to costs from the 2026 tax year
- Decreto Dignità advertising ban unchanged
What changed
Decree-Law No. 153 of 26 August 2026, published in Gazzetta Ufficiale No. 197 the same day and in force from 27 August 2026, amended the income tax code in Article 3(3) to (7). Spending on sponsorships or similar contracts covered by Article 9 of Decree-Law 87/2018, made by entities linked directly or indirectly to legal gaming operators that provide information about gaming or odds and offer comparison services, is not deductible for corporate income tax (IRES) or regional production tax (IRAP). The responsible-communication investments required by Article 15(2) and (3) of Legislative Decree 41/2024 are always treated as representation expenses (spese di rappresentanza) rather than advertising. The rules apply to costs incurred from the 2026 tax year. Parliament's documentation records the same measure as Article 2-ter of Decree-Law 133/2026.
What it means for advertising
The advertising ban in Article 9 of the Decreto Dignità remains in force. The new decree-law presupposes the ban by referring to sponsorships that Article 9 covers, and does not relax it. The new rule targets the information and odds-comparison sponsorships used in sport since 2018, which is likely to make such deals more expensive and less common. Sports clubs, leagues and media owners that rely on this income may see lower demand or revised terms.
What operators should do
Identify any sponsorship held by group companies or linked information or comparison brands and reassess its after-tax cost from the 2026 tax year. Account for the 0.2% responsible-communication spend as representation expenses. Follow the conversion of the decree-law, since the text could change during the parliamentary process. Agencies selling sport or media inventory to information and comparison brands should expect buyers to renegotiate on price or volume.
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