Italy has commenced the initial phase of its extensive gambling sector reform, launching a new licensing regime for online gambling concessions. Announced through the European Union’s Official Journal, this significant update introduces nine-year licenses designed to modernize the industry and generate substantial government revenue.
This initiative, part of a larger strategic framework, aligns with the country’s goal to establish itself as a European leader in gambling regulation while addressing economic and consumer protection challenges.
Details of the New Licensing Framework
Key updates to the licensing system include a mandatory €7 million authorization fee for each license, coupled with a 3% operating fee on revenues. These measures aim to generate approximately €350 million in fees from anticipated applications, with an additional €100 million in annual concession revenues.
Operators have until May 30, 2025, to submit their applications, with the review process expected to span nine months. Eligibility criteria are stringent, requiring applicants to:
- Establish legal or operational headquarters within the European Economic Area (EEA).
- Hold valid gaming licenses.
- Demonstrate revenues exceeding €3 million over the past two fiscal years.
Each operator can apply for a maximum of five licenses, with payments structured into two installments: €4 million upon approval and €3 million at the launch of operations, which must occur within six months of receiving the concession.
Strengthened Financial Guarantees
The new licensing process also implements robust financial guarantee requirements to ensure compliance and deter misconduct. Applicants must submit a provisional guarantee of €750,000, either as a deposit or via an authorized surety bond. Additionally, a final guarantee of €3.7 million—equating to 10% of the total tender value—is required. Subsequent years will see variable guarantees based on performance and a fixed quota of €500,000.
A €560 fee to Italy’s National Anti-Corruption Authority (ANAC) is also mandatory, further emphasizing integrity within the industry.
Italy’s reform proposals, originally submitted to the European Commission (EC) in November, faced delays due to concerns raised by the Malta Gaming Authority (MGA) over technicalities regarding B2B operations. This led to an extended standstill period as adjustments were made.
Despite these setbacks, the Italian Ministry of Finance (MEF) and the Customs and Monopolies Agency (ADM) secured EC approval for the reforms. As part of this process, Italy enacted measures to address these challenges while safeguarding the broader economic objectives of the new framework.
Scheduled for 2025, the second phase of Italy’s gambling reforms will address challenges in the land-based gambling sector and reevaluate the Dignity Decree, a controversial regulation introduced in 2019. The decree—which banned gambling advertising and sponsorships—has faced criticism from Serie A clubs, media outlets, and trade bodies for its adverse economic impact.
Roberto Alesse, Director General of the ADM, labeled the Dignity Decree as “short-sighted” and harmful to Italy’s economy. Speaking to La Verità, he emphasized that reforms will align with European standards to support economic growth while maintaining strict regulatory oversight.
Alesse highlighted the importance of creating uniform regulations across Italy’s regions to enhance consumer protections and combat illegal gambling. These efforts aim to bolster Italy’s position as a leader in European gambling legislation. However, the ADM also faces challenges, including a 6% decline in gambling tax revenues in 2023, which amounted to €11.62 billion.
Optimism for the Sector’s Future
Despite recent challenges, Italy remains committed to striking a balance between regulatory oversight and economic growth. “In a liberal state, legal gambling cannot endure excessive prohibitions,”Alesse remarked. “We must adapt national standards to those required by Europe.”
With reforms underway, Italy seeks to modernize its gaming sector, safeguard consumers, and combat illegal operators, paving the way for sustainable growth and a stronger presence in the European market.
Source:
''Italy Launches Nine-Year Online Gambling Licenses With €7M Fee and Comprehensive Reforms'', World Casino Directory, December 20, 2024.
