Italy’s new coalition government appears set to do some major damage to the local gambling industry, according to their new policy framework.

On Tuesday, the latest draft of the ‘government of change’ coalition agreement between the Five Star Movement (M5S) and League parties – which won the most votes in the March general election – was leaked to Italian media.

While some of the original leaked draft’s anti-European Union proposals have been watered down in the latest draft, the two paragraphs relating to the gaming industry remain intact and spell trouble for local operators.

The previous Italian government had imposed a 35% reduction in the number of amusement with prizes (AWP) machines and video lottery terminals (VLT) in Italian retail shops, but the coalition agreement talks of “the elimination of gambling machines (slot machines, video lottery terminals) and strong limitations on forms of gambling with repeated bets.”