Italy Celebrates Introduction of New Online Gambling Regulations

  • UM News
  • Posted 1 year ago
00:00 / 00:00

Italy has officially introduced a new licensing framework for online gambling, marking the completion of the first stage in the government’s overhaul of the gambling sector set for 2024.

The EU’s Official Journal has recorded the final ratification of Italy’s updated licensing framework, sanctioning the procedure for issuing new nine-year online gambling licenses. This approval process began with a proposal submitted to the European Commission (EC) in November. However, a detailed submission by the Malta Gambling Authority (MGA), focusing on B2B technical aspects, resulted in a delay due to an extended review period.

Despite this delay, necessary adjustments were sanctioned by the Ministry of Finance and the Customs and Monopolies Agency (ADM), including a newly instated €7 million authorization fee per online gambling license. This fee will be levied in conjunction with a concessionaire’s 3% operational charge.

**Licensing Details and Timeline**

The EC approved Italy’s Ministry of Finance and ADM’s essential changes, introducing a €7 million authorization fee for each license, supplemented by a 3% operating charge. Prospective applicants must submit their proposals by May 30, 2025, with the entire process expected to span nine months from the tender announcement.

Applicants are required to meet stringent eligibility standards, showcasing their capability in overseeing and operating gaming platforms in the European Economic Area (EEA). Furthermore, candidates need legal or operational headquarters within the EEA, a valid license, and must demonstrate revenues of over €3 million across the past two fiscal years. Each applicant is permitted to request up to five concessions. The €7 million license fee can be paid in two parts: €4 million upon award and €3 million upon commencing operations, which should start within six months of obtaining the concession.

The ADM anticipates approximately 50 operators seeking these new licenses, potentially generating €350 million in revenue and an extra €100 million annually from fixed concession prices.

**Guarantees and Anti-Corruption Measures**

Applicants must provide an initial guarantee of €750,000, obtainable as a deposit or surety bond through authorized banks or financial mediators. A final €3.7 million guarantee for 2025, equivalent to 10% of the tender’s total value (€37.1 million), is mandatory. Additional guarantees will comprise a fixed €500,000 portion and a variable element contingent on operational achievement. Additionally, candidates must settle a €560 fee to Italy’s National Anti-Corruption Authority (ANAC).

**Phase-2: Addressing Land-based and Dignity Decree Conflicts**

In 2025, ADM and MEF will advance to the second phase of the gambling sector overhaul, concentrating on creating consistent federal regulations throughout Italy and boosting protections for gambling venues. Discussions with regional governments are ongoing to unify laws across the nation, with a focus on tackling illegal gambling operations effectively.

Most anticipated is a modification to the controversial Dignity Decree, drafted by the former Lega-5-Star administration, which outlawed gambling publicity and sponsorships from 2019. In a recent interview with *La Verità*, Roberto Alesse, Director General of the ADM, underlined the decree’s economic harm, facing opposition from Serie A clubs, media entities, and trade associations.

Alesse labeled the Dignity Decree as a “hypocritical regulation,” announcing that reforms will align Italy’s standards with European benchmarks while balancing regulatory oversight, economic advancement, and consumer safety.

**ADM: Italy’s Potential to Lead in Gambling Legislation**

The ADM views these reforms as a chance to reposition Italy as a frontrunner in Europe’s gambling industry, boosting tax income and protecting consumers from illicit operators. Nevertheless, the ADM grapples with challenges like a 6% reduction in gambling tax revenues in 2023, with collections at €11.62 billion—a figure expected to diminish further in 2024.

Alesse concluded that Italy’s gambling reforms strive for balanced regulations to stimulate economic activity while addressing unlawful gambling. “In a liberal nation, legal gambling should not face excessive restrictions. National standards must adapt to those set by Europe.”

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