Italy Prepares for Major Overhaul in Online Gambling Regulations

Increase to Licensing Costs

Italy is on the brink of implementing a comprehensive reform in its online gambling sector, led by the Agency of Customs and Monopolies (ADM). A key aspect of this reform is the substantial increase in the cost of obtaining a license for online gambling operations.

Under the new regulatory framework, the fee for a nine-year license has risen dramatically from €200,000 to €7 million. This significant increase, 35 times the previous amount, is designed to ensure that only financially robust and serious companies can maintain operations in the Italian market.

Licensing Fee Increase Favors Major Operators, Pressures Smaller Firms

The sharp rise in licensing fees is expected to consolidate the Italian online gambling market, favoring larger, well-established operators such as SNAI, Flutter Entertainment, Lottomatica, and Entain. These companies are already dominant in the market and are more likely to meet the stringent financial requirements set by the new regulations.

However, there are concerns that smaller operators may struggle to adapt to these changes, potentially leading to reduced market diversity and fewer options for consumers.

While some industry stakeholders view this consolidation as a negative development, others see it as a necessary step to create a more stable and reliable gambling environment in Italy.

Enhanced Player Protections

The new regulations are not just about financial thresholds; they also aim to enhance player protections. The ADM has introduced stricter requirements for operators in terms of managing player accounts and handling financial transactions. These measures are intended to create a safer and more transparent environment, reducing the risk of fraud and ensuring the security of player funds.

Erik King, founder of the Italian online gambling aggregate website Grazieslots.com, expressed cautious optimism about the new framework. While acknowledging the challenges that higher costs may present to smaller operators, he believes that the changes will ultimately lead to a more secure and stable market.

“With these new solid regulatory rules, the Italian gambling market has all the credentials to become a global leader in the sector,” King noted.

Timeline for Implementation

Italy has set a deadline of 18 October 2024 to finalize these new regulations, with plans to begin the remote gambling licensing process by January 2025.

This timeline provides operators with adequate time to adapt to the new requirements.