Italian authorities have imposed precautionary measures on 15 suspects in a slot machine fraud investigation involving alleged tax evasion, manipulated gaming machines and corruption within the country’s gambling regulator.
The operation, carried out in Cosenza on 26 October 2026, follows an investigation that previously led to the seizure of 145 gaming machines and assets worth more than €12 million.
Italian authorities imposed precautionary measures on 15 suspects, including house arrest for two.
Investigators previously seized 145 allegedly manipulated gaming machines and approximately €80,000 in cash.
A court ordered the seizure of assets worth more than €12 million in November 2025.
An ADM official allegedly disclosed confidential inspection schedules in exchange for payments.
Investigators believe cloned electronic boards concealed gaming revenue and evaded taxes.
According to the Carabinieri’s official statement, officers worked alongside Italy’s Customs and Monopolies Agency (ADM), coordinated by the Cosenza Public Prosecutor’s Office. Of the 15 suspects, two were placed under house arrest, six received non-custodial measures, and seven were prohibited from operating gambling businesses for one year.
The investigation concerns suspected criminal association, corruption, disclosure of official secrets and fraud against the state. Investigators also allege that an ADM official accepted payments from a gaming machine distributor in exchange for advance information about inspections.
The official allegedly disclosed inspection dates and targets, allowing unauthorised components to be concealed before regulators arrived. All allegations remain subject to judicial proceedings, and the investigation has not resulted in final criminal convictions.
The investigation began after ADM officials identified irregularities in gaming volumes recorded by amusement with prizes (AWP) machines across Cosenza province. Authorities suspect that operators installed cloned electronic boards alongside legitimate components connected to Italy’s central gambling monitoring network.
Investigators say modified wiring, wireless controls, and switching devices let operators redirect gaming activity to unauthorised systems, preventing certain transactions from being recorded for tax purposes.
The alleged arrangement enabled operators to avoid paying the Prelievo Unico Erariale (PREU), Italy’s gaming machine tax.
Speaking to ANSA, Cosenza prosecutor Vincenzo Capomolla said:
“It was a highly organised and meticulous mechanism.” The quotation has been translated from Italian.
Investigators previously seized 145 machines and approximately €80,000 in cash. A separate court order issued on 6 November 2025 authorised the precautionary seizure of assets worth more than €12 million.
The case highlights potential weaknesses in machine-level monitoring, inspection procedures and tax compliance within Italy’s land-based gambling sector.
It also comes as the government prepares wider regulatory changes. As Ace Alliance previously reported, Italy plans to overhaul land-based gambling regulations, including proposed changes to gaming machines and licensing requirements.
Tax enforcement remains another important consideration. Italy recently outlined plans to raise about €2 billion in additional gambling-sector revenue between 2027 and 2029, though it has not yet confirmed the specific fiscal measures.
The investigation concerns physical gaming machines rather than online casino platforms. Nevertheless, it demonstrates the importance of reliable transaction records, effective technical safeguards and regulatory oversight.
For operators and technology suppliers, the findings are particularly relevant as Italy continues to modernise its gambling framework, following the introduction of 52 new online gambling licences.
Further developments will depend on the ongoing judicial investigation and subsequent court proceedings.
