Italy has officially launched a new licensing framework for online gambling, finalizing the first phase of its gambling sector reorganization in 2024. The new licensing structure, which was documented in the EU’s Official Journal, enables operators to obtain nine-year concessions at a significantly higher fee of €7 million per license. This initiative reflects Italy’s effort to modernize its gambling regulations and align with European standards.
This framework follows an extended standstill period due to objections raised by the Malta Gaming Authority (MGA) regarding B2B compliance. Despite these delays, the European Commission (EC) approved key changes sought by Italy’s Ministry of Finance (MEF) and Customs and Monopolies Agency (ADM), allowing the restructured system to move forward.
Licensing Requirements and Financial Provisions
Operators looking to apply must meet strict criteria, including maintaining a legal or operational headquarters within the European Economic Area (EEA), possessing valid licenses, and achieving at least €3 million in total revenues over the past two years. Each operator can apply for up to five licenses, with payments split into two installments: €4 million upon concession award and €3 million upon the launch of operations.
Additionally, operators must adhere to financial guarantees, starting with a €750,000 provisional deposit and a final guarantee of €3.7 million. Beyond these, a fixed annual operating fee of 3% applies. To support anti-corruption measures, applicants must pay a €560 fee to Italy’s National Anti-Corruption Authority (ANAC).
Applications for concessions are open until May 30, 2025, with the evaluation process expected to last nine months. Authorities predict approximately 50 operators will apply, generating an estimated €350 million in initial revenue and an additional €100 million annually through fixed concession fees.
Regulatory and Operational Enhancements
The ADM is planning the second phase of reforms in 2025, focusing on resolving conflicts in land-based gambling regulations and revising the controversial Dignity Decree, which banned gambling advertising and sponsorships in 2019. ADM Director General Roberto Alesse criticized the decree as “economically damaging” and anticipates reforms that balance consumer protection, economic growth, and regulatory oversight.
The second phase will also standardize gambling laws nationwide, addressing illegal gambling and ensuring better protections for consumers. The ADM views these reforms as an opportunity to position Italy as a leader in European gambling legislation.
Challenges Ahead
Despite the ambitious plans, Italy’s gambling reforms face challenges, including declining tax revenues, which fell 6% in 2023 to €11.62 billion. Projections indicate further declines in 2024, prompting the need for efficient implementation of the new framework.
The framework has also sparked concerns from smaller operators over the increased licensing fees and stricter requirements. These measures, combined with limitations on branding and platform flexibility, may lead to further consolidation within the market.
Furthermore, anomalies in online gambling behaviors, particularly in smaller municipalities, are under scrutiny. A recent study in Calliano revealed disproportionately high per capita gambling expenditures, highlighting the need for targeted municipal regulations to mitigate potential societal impacts.
A New Era for Italy’s Gambling Industry
With the approval of the licensing framework, Italy is setting the stage for a more structured and transparent online gambling market. As the ADM finalizes its response to the MGA’s concerns, the extended standstill period offers an opportunity to refine the system further.
As Roberto Alesse noted, “In a liberal state, legal gambling cannot endure excessive prohibitions. We must adapt national standards to those required by Europe.” By implementing balanced regulations, Italy aims to stimulate economic activity, enhance consumer protections, and address illegal gambling effectively.
Source:
Italy Launches New Licensing Framework for Online Gambling, lcb.org, December 19, 2024.