Italy is gearing up for a significant reform of its online gambling regulations, with the government officially endorsing the “Reorganization Decree” aimed at resolving ongoing industry disputes.
Validation:
The government confirmed the validation of the Reorganisation Decree, proposed by the Ministry of the Economy and Finance (MEF), on January 2.
This decree marks the first comprehensive review of Italy’s gambling regulations since the market was legalized in 2011. It aims to safeguard players, particularly minors. Boost tax revenues for social programs and government initiatives, and combat illicit activities.
Key reforms include the introduction of a new licensing framework. Featuring a €7 million authorization fee for each online gambling license. Additionally, a 3% operating fee for concessionaires will be implemented alongside the licensing fee.
Furthermore, new license holders will be required to pay an annual fee of 0.2% of their net income. Funding responsible gambling initiatives overseen by a dedicated gambling division reporting directly to Italy’s Customs and Monopolies Agency (ADM).
The number of licenses available to each operator. Such as Flutter Ent., Entain, SKS365, SNAI, and Lottomatica, will be limited to five. This move aims to address concerns raised by the MEF regarding the practice of “skin websites” selling individual concessionaire products. As previously highlighted by the ADM.
Additionally, according to AgiproNews. The government anticipates generating €350 million in revenue from the competition. With €200 million expected in 2024 and €150 million in 2025. Furthermore. The concession fee is projected to generate an additional €100 million in annual revenue, while over €6 million per year will be collected from the registration fee for the Register of online top-up agents.
However, concerns have been raised by the Italian online gambling trade body Logico regarding competition. They highlight a significant increase in fees outlined in the proposed Decree. Representing a 35-fold rise compared to the €200,000 fee imposed since 2018. Logico, along with Arcadi, another trade body Has advised the government against proceeding with the Reorganisation Decree without industry input on essential changes.
As a result. The government has opted to postpone determining the exact number of Italian operators (estimated at least 50) who will obtain the new iGaming license until further notice.
Resolving Licensing Disputes:
Maurizio Leo. The Treasury Deputy Minister overseeing land-based and online gaming laws, expressed approval of the Decree. He noted that its validation will help the government resolve “legal disputes on licensing extensions.”
High Court judges have urged the government to adopt the new framework due to the accumulation of legal challenges by operators contesting the ADM’s current concession terms.
Furthermore, the Decree includes measures to combat illegal gambling; introduce self-limitation tool. Safeguard vulnerable players, enforce customer restrictions based on deposit thresholds, and disseminate warning messages. Additional market protections proposed to directly block unauthorized payments and websites to and from illegal operators as part of the government’s efforts to combat “Italian consumers’ exposure to a €1 billion black market.”
While it suggests a review of concessions. The Decree does not outline any changes to the tax structure for online gambling. This decision stems from the Ministry of Economy and Finance’s (MEF) intention to await the government’s completion of the restructuring of laws governing brick-and-mortar gambling establishments.
Prime Minister Giorgia Meloni of Italy has expressed support for the country’s gambling reorganization efforts, emphasizing the significance of this sector as a vital economic contributor. Notably. The industry generated €11 billion in tax revenue two years ago.
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