Italy targets alleged slot machine fraud network, seizes 145 machines

Newswire

Cosenza; Italian authorities have taken action against 15 people suspected of involvement in a slot machine fraud network in the southern province of Cosenza, seizing 145 gaming machines and around €80,000 in cash as part of an investigation into alleged gambling fraud, tax evasion and corruption.

The operation was conducted by the Carabinieri of the Cosenza Provincial Command this week in coordination with officials from the Gaming Directorate of the Customs and Monopolies Agency (ADM).

Under the precautionary measures, two suspects were placed under house arrest, six were subjected to restrictions short of detention, and seven were barred from operating or participating in gambling activities for one year.

Investigators suspect the network used specially modified gaming machines to divert wagers outside Italy’s official gambling monitoring system, potentially depriving the state of tax revenue.

Modified machines allegedly bypassed state monitoring

According to investigators, the machines contained unauthorised electronic boards installed alongside approved hardware connected to the ADM monitoring system. The alleged arrangement enabled gambling activity to be conducted outside the official register, potentially avoiding the Prelievo Erariale Unico (PREU), the tax imposed on slot machine wagers.

The investigation began after ADM monitoring controls detected significant anomalies in the telematic data transmitted by several machines.

Subsequent inspections and examinations of smartphones, tablets, computers and digital storage devices allegedly revealed evidence of a system designed to redirect gameplay to illicit, cloned electronic boards.

Investigators suspect the operation involved modified wiring, wireless remote controls, timers and monitor switches that allowed machines to be switched between authorised and unauthorised systems, concealing wagers from official records.

The investigation has also focused on a local ADM employee suspected of providing confidential information about planned inspections, including their dates and locations, in exchange for payments.

Prosecutors believe the alleged disclosures enabled operators to conceal unauthorised components before inspectors arrived.

The employee is also suspected of exploiting access to an ADM warehouse to obtain sealed boxes containing confiscated electronic boards, which were allegedly passed to members of the network for modification and reuse.

Potential offences under investigation include participation in a criminal organisation, corruption, disclosure and use of official secrets, fraud against the state, tax evasion and aiding and abetting.

The latest enforcement measures form part of a wider investigation in which authorities seized more than €12 million in cash and assets in November 2025.

The case comes as Italy continues to reshape its gambling regulatory framework. A new licensing system for online betting and casino operations was introduced in November 2025, while the regulatory framework governing land-based gaming continues to evolve.

Authorities have also pursued separate investigations into alleged misconduct elsewhere in the gambling sector, including a case involving the seizure of more than €25 million in assets in an investigation into former employees suspected of exploiting privileged access connected to Gratta e Vinci scratchcards.

The Cosenza investigation remains at the preliminary stage. The allegations have yet to be established in court, and all suspects are presumed innocent unless proven guilty.