Italy plans major changes to its online gambling sector

Over the last two decades, regulated gambling activities across Europe evolved significantly. Besides retail gambling, the popularity of online gambling and sports wagering on the Old Continent has grown exponentially over the last 10 years. iGaming markets across Europe have received a significant push due to the COVID-19 pandemic which temporarily shut the doors on brick-and-mortar casinos and betting outlets back in 2020 and 2021. This temporary closure pushed many gamblers into online activities, favorably impacting the iGaming and betting sectors.

One important gambling market on the Old Continent is the one in Italy. While the country currently offers legal retail gambling, back in 2011, it also legalized online gambling. This paved the way for a competitive market that currently has more than 80 licensed iGaming operators. While the online gambling market in Italy is one of the biggest in Europe, the regulation hasn't gone through significant changes ever since iGaming was authorized more than a decade ago.

Changes to the iGaming sector to protect gamblers, increase fees for operators

Amid the expansion of online gambling activities, changes to the regulation are becoming a necessity and this perfectly fits the case for Italy. Efforts for the overhaul of the iGaming sector in the country started last year with an announced Reorganization Decree that proposes major reforms. The aforementioned Decree was introduced by Italy's Ministry of Economy and Finance (MEF) and proposes changes that would affect the fees applicable to online gambling operators.

At the same time, by overhauling the iGaming vertical, the country anticipates protecting minors from gambling and reducing problem gambling while supporting a responsible gambling sector that offers a wide range of tools that help gamblers manage their spending.

The efforts toward responsible gambling are expected to include options for self-exclusion from the activity. Moreover, Italian customers who use licensed iGaming operators would be subject to cautionary messages and will have the option to access a wide range of responsible gambling tools such as deposit, wager or loss limits, among others. The efforts toward responsible gambling will also focus on ensuring the protection of individuals vulnerable to gambling and preventing minors from participating in such activities.

A major part of the change for the iGaming market in Italy involves licensing for the gambling operators. Under the Decree, companies interested in offering online gambling services to customers in the country would be subject to a €7m ($7.6m) fee that would authorize them to operate in the country. The last time this particular license fee changed was back in 2018. At the time, the fee was set to €200,000 ($218,300). This otherwise means that the fee for iGaming operators under the new Decree would go up by more than 30 times.

In addition to the increased licensing fee, operators would be subject to a 3% tax applicable for the provision of gambling services. Together with the aforementioned fees, iGaming operators would be subject to a yearly fee on their net income. That fee, under the Decree, would be 0.2%.

The overhaul of the online sector to increase proceeds

With more than 80 operators, Italy has one of the largest gambling markets in Europe. Early projections show that 50 operators are likely to apply for concession under the new rules, despite the significant changes planned in terms of the fees applicable for online gambling operators.

Earlier this month, AgiproNews released a report, outlining a prediction for the revenues that could be raised under the new online gambling concessions. The new concessions are expected to deliver an estimated €350m ($379m) in revenue. According to a breakdown, some €200m ($216.5m) would be raised throughout this year. Then, another €150m ($162.4m) in revenue is expected to be generated for the first half of 2025.

Last week, the Reorganization Decree gained further traction. Still, it is up to the lawmakers to give the green light and approve the discussed regulations. Early expectations predict that concessions under the new rules are expected to be awarded by the end of this year.

Italy follows the UK when it comes to changes within the gambling sector. Several years ago, the UK government announced a review of the 2005 Gambling Act. This marked the first major review of the gambling laws in the country for more than a decade. The process was long and after many delays and broken deadlines, the White Paper of the review of the main gambling law arrived in April.

Ultimately, the review sought to make the gambling laws suitable for the digital age and address a number of rising challenges for the sector. It paved the way for changes to the market, including limits for online slots, affordability checks and robust regulations. Judging by the Reorganization Decree, Italy is set to follow those steps and implement major changes to the growing online gambling sector.

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