Yes, Mario is Italian, Italian-American to be precise.
Mario is a fictional character from the Mario video game franchise created and currently owned by Nintendo. He first appeared in Donkey Kong and was called simply ‘Jumpman’ but due to his popularity, he eventually got his own game which became more successful than Donkey Kong.
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Mario is part Italian, he is an Italian-American and was named after a real person, the landlord of Nintendo’s North America division Mario Segale who looked similar to the Mario character. One of the reasons why the Japanese developers decided to make the Mario character Italian-American is to make him appeal to the European and North American markets more and they also thought that the original ‘Jumpman’ name was boring.