New Italian gambling laws may remove sponsorship restrictions

In 2019, Italy enforced a ban on gambling sponsorships in sports. The ban, which has been active for years now, resulted in losses in the hundreds of millions, estimates by Serie A clubs claimed.

However, there may be hope for topflight Italian football teams, considering that a review of gambling sponsorship ban was recently initiated. While the process takes time, Italy gambling laws may finally undergo changes to permit gambling sponsorships in a move that anticipates revitalizing football in the country.

Italian football sponsorship ban

Ahead of the implementation of the gambling sponsorship ban in sports, the Senate in Italy passed the 2018 Dignity Decree. The aforementioned Decree was subsequently implemented in 2019, affecting major Italian football clubs.

The ban on betting sponsorships affected Serie A, Serie B and Serie C clubs, a move that, according to some experts and critics of the blanket ban, stifled their growth.

Not unexpectedly, Italy's top-flight clubs from Serie A claimed that they stand to lose hundreds of millions as a direct result of the gambling advertising ban.

Ultimately, the ban was implemented when a coalition government of the 5Star Movement and Lega Nord ruled in the country.

With Serie A betting partnerships on hold, the clubs claimed that Italy may lose approximately €700m in tax revenue for the first three years of the ban.

Later on, Serie A claimed that the ban on gambling sponsorship results in €100m in losses annually for Italian football. Undoubtedly, the gambling advertising ban was a big hit not only for high-profile clubs.

Gambling advertising restrictions under review

Recently, Italy hinted at plans about changes to its online gambling sector. Those efforts ultimately sought to improve the regulatory framework, ensuring the protection of vulnerable individuals and combat underage gambling.

Separate from the changes for online gambling, more lawmakers are seeing the benefits of a potential lift or modification of the gambling sponsorship ban.

Late in December, ADM, Italy's customs and monopolies agency, a body which is also in charge of regulating gambling, vowed to review gambling advertising restrictions.

At the time, the agency's Director, Roberto Alesse, who was interviewed by La Verità, recognized the existing gambling ad ban as a "hypocritical regulation."

In addition, he pointed to the negative impact of the blanket gambling advertising ban which wasn't suitable for a "liberal state."

The effect of the gambling sponsorship ban was opposite to what lawmakers thought in 2019. This is because the prohibition of betting ads made it more difficult for some consumers to distinguish licensed from black market operators.

Lifting the sponsorship ban is part of a proposal to revitalize football

Late last month, the 7th Senate Commission urged the government to consider changes to the Dignity Decree in a move that ultimately may revoke the betting sponsorship ban, a Gazzetta report suggests.

The proposal in question seeks to revitalize and reform Italian football. One of the methods proposed in the document that may ultimately positively impact the sport is the annulment of the 2019 ban on gambling sponsorship in sports.

After approval from the Senate's Culture Commission, it will now be up to the Chamber of Deputies to decide on the future of the 2018 Dignity Decree.

As announced by local media outlets, Andrea Abodi, the country's Sports Minister, is preparing to negotiate terms for new gambling sponsorships with football clubs.

It's important to note that the overhaul of the market is driven by the idea to revitalize football in light of the sport's significant economic impact on Italy's GDP. Football's impact economically translates to the mind-blowing sum of €11.3bn, the new proposal estimates.

Besides the economic impact of the popular sport, the document highlights the popularity of football. In fact, the sport is most popular among Italians and has a fan base of more than 650,000 teens and children.

Pushed by the idea to reform and revitalize football, the proposal calls for the allocation of a minimum of 1% of the proceeds of sports betting and sponsorships toward modernizing stadiums and boosting women's football. The so-called 1% betting allocation also seeks to improve grassroots facilities and play a key role for the development of youth teams and training.

The vital financing of sports and social projects is expected to immediately positively impact Italian football. Besides the aforementioned 1% betting allocation, teams are going to benefit from gambling sponsorships, provided that lawmakers repeal or modify the Dignity Decree.

The newly proposed legislation plans to revitalize Italian football.

Image credit: Pixabay.com

Opponents of the change raise concerns, proponents praise the effort

Despite the Dignity Decree review and potential changes that ultimately seek to revitalize the sector, some lawmakers remain skeptical. Concerns regarding the impact of the gambling sector on professional football continue to grow, something that isn't specific only to Italy.

Still, some legislators are concerned about the potential repeal of the Dignity Decree, arguing that such a change must be done carefully.

In contrast to the pushback from some critics, the idea to overturn the ban on gambling sponsorships in Italy is enjoying broad support. The idea of repealing the gambling advertising ban in sports is backed by political parties, as well as football governing bodies.

It's no surprise that Serie A clubs recognize the importance of the repeal of the Dignity Decree, or at least its modification. Besides Italy's top-flight football clubs, recognizable bodies governing the popular sport, including CONI and FIGC, have also supported the lift of the sports betting ban.

Lawmakers are expected to decide the fate of the gambling sponsorship ban

Undoubtedly, the potential amendment or revocation of the 2018 Dignity Decree is going to bring significant changes to football in Italy. While it is yet to be seen what path the lawmakers will take, removing the gambling sponsorship ban will not only benefit the sport but help licensed operators raise awareness of their respective brands.

In turn, this can improve the channelization to the legal sector, helping the country combat black market and illegal operators. Whether or not this will happen remains contingent on the decision of Italy's lawmakers.

Image credit: Pixabay.com