An alleged high-tech slot machine skimming ring in Italy had an insider advantage to dodge detection: a informant inside the government agency tasked with regulating 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 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 regulator—was allegedly on the payroll, tasked with providing advance warning of upcoming inspections.

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

Rigged Hardware

Authorities claim the ring installed hidden, dual-circuitry systems inside the machines. One set of electronics dutifully reported compliant gambling activity to Italy’s central monitoring network, while a secondary circuit secretly recorded wagers that were never reported to tax authorities.

This technological sleight of hand allowed operators to collect cash while evading the required state gambling levy, known as the PREU (Prelievo Erariale Unico).

Suspects used wireless remote controls to divert play through the unauthorized circuitry, investigators said, while cloned smart cards reportedly prevented the machines from locking up when disconnected from the official state network.

The machines’ anti-tampering seals were allegedly bypassed using simple glue and plastic ties.

Forewarned about pending inspections by the corrupt ADM official, suspects were able to strip out the incriminating components and restore the machines to a compliant state before inspectors arrived.

Evidence Goes Missing

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

The confiscated components were allegedly returned to the operator and a trusted technician, who wiped the electronic logs, reset the counters, and placed the hardware back into circulation.

The investigation originally began after ADM data analysts in Rome flagged statistical discrepancies in betting volume transmitted by machines in Cosenza province.

In November 2025, authorities executed a preliminary freeze ordering the seizure of more than €12 million ($13 million) in assets tied to the gambling enterprise over unpaid tax liabilities.

Cosenza Chief Prosecutor Vincenzo Capomolla confirmed Monday that the investigation remains ongoing.