Italian Slot Machine Skimming Ring Had an Inside Man at Gambling Watchdog, Police Say

An alleged high-tech slot-machine skimming operation in Italy had a secret weapon to avoid detection: an insider at the government agency responsible for policing the devices.

The scheme involved a slot machine distributor and operator whose machines were installed at numerous gambling venues across the southern province of Cosenza, according to Italian authorities.

Investigators say the operator worked with a network of technicians and suppliers to rig 145 machines to conceal wagers from the tax authorities, allowing the group to pocket untaxed gambling revenue.

Meanwhile, an official at Italy’s Customs and Monopolies Agency (ADM), the country’s gambling watchdog, was allegedly on the payroll, tasked with providing advance warning of inspections.

Police in Cosenza, southern Italy, executed court-ordered measures against 15 suspects Monday (Oct. 26). Two were placed under house arrest, while 13 others face noncustodial penalties, including bans from working in the gambling industry.

Two Sets of Books

Authorities claim the gang installed hidden circuitry inside the machines. One set of electronics dutifully reported gambling activity to Italy’s official monitoring network, while another secretly recorded bets that never reached the tax authorities.

The technological sleight of hand allegedly allowed operators to pocket cash without paying the required gambling levy, known as the PREU.

The suspects used wireless remotes to divert play through the unauthorized circuitry, investigators said, while cloned smart cards reportedly prevented the machines from shutting down when disconnected from the official network.

The machines’ anti-tampering systems were allegedly defeated using simple glue and plastic ties, authorities said.

Forewarned about inspections by the ADM official, suspects could strip out the incriminating components and restore the machines to their lawful state before inspectors came knocking.

Evidence Goes Missing

Investigators claim the official also helped himself to boxes of electronic boards that had already been seized as evidence and were being held in government storage.

The confiscated components were allegedly handed back to the gambling operator and a trusted technician, who wiped their electronic records, reset their counters, and put them back into circulation.

The investigation began after ADM analysts in Rome spotted discrepancies in betting data transmitted by machines in Cosenza province.

In November 2025, authorities ordered the seizure of more than €12 million ($13.5 million) in assets linked to a gambling-machine business operator over suspected unpaid gambling taxes.

Cosenza prosecutor Vincenzo Capomolla said Monday the investigation remains ongoing.