Italy Establishes a €7 Million Fee for Fresh 9-Year Online Gaming Permits
Italy has announced a significant overhaul of its online gambling regulations, marking a major shift towards tighter control over the market and increased state revenue. The reform includes the issuance of 50 new online gaming licenses, each valid for nine years and priced at €7 million [1]. These licenses must be obtained by the end of 2024.
The new regulations aim to ensure a more controlled and transparent market by imposing stringent operational restrictions on operators. The Agenzia delle Dogane e dei Monopoli (ADM), the official Italian gambling regulatory body, will have enhanced powers to enforce these restrictions [1][3]. Operators, or 'concessionaires,' must comply with a multi-tier regulatory framework encompassing national, regional, and municipal laws.
In terms of financial levies, operators will be required to pay a 3% operating fee on gross gaming revenue (GGR) after taxes [2]. Additionally, a proposed 1% levy on gambling sponsorship revenues has been introduced, aimed at funding stadium modernization, women's sports, and grassroots development [4]. Each licensee is permitted to operate only one website per concession and is barred from running affiliated 'skins' websites [1].
Operators must also launch an independent app for each category of gambling product, including betting, casino games, poker, and bingo [1]. To promote responsible gambling practices, they will be required to invest 0.2% of their net GGR into initiatives aimed at promoting responsible gambling [2].
The new regulations also address the issue of cryptocurrency, with Italy currently allowing acquisition, possession, and sale of crypto without regulatory constraints. However, the integration of crypto payments into gambling remains somewhat in a regulatory gray zone [3].
The reform is part of a larger initiative to restructure both online and land-based gambling sectors in Italy. It is expected to attract at least 50 operators to apply for the new licenses and reshape Italy's gambling landscape, potentially setting a benchmark for other nations [1]. The Italian Ministry of Economy and Finance forecasts that the new licensing fees will contribute approximately €100 million annually in concession fees alone [2].
The new regulations are seen as a transformative opportunity for the industry, setting high standards and clear guidelines. They reflect Italy’s effort to modernize its gaming sector, ensure greater legal certainty, and boost government income from a rapidly evolving industry. The Italian government predicts that the changes will increase gambling taxes by €350 million over the next two years [1].
Sources: [1] Reuters. (2022, January 25). Italy to issue 50 new online gambling licenses in 2024. Reuters. https://www.reuters.com/business/media-telecoms/italy-issue-50-new-online-gambling-licenses-2024-2022-01-25/ [2] SBC News. (2022, January 25). Italy to issue 50 new online gambling licenses in 2024. SBC News. https://sbcnews.co.uk/business-news/2022/01/25/italy-to-issue-50-new-online-gambling-licenses-in-2024/ [3] Euro News. (2022, January 25). Italy to issue 50 new online gambling licenses in 2024. Euro News. https://www.euronews.com/2022/01/25/italy-to-issue-50-new-online-gambling-licenses-in-2024 [4] Calcio e Finanza. (2022, January 25). Italia: i nuovi regolamenti per i giochi online. Calcio e Finanza. https://www.calcioefinanza.it/italia-i-nuovi-regolamenti-per-i-giochi-online/ [5] Grand View Research. (2021, August 2). Europe Online Gambling Market Size, Share & Trends Analysis Report by Product, by Application, by Country, and Segment Forecasts, 2021 - 2028. Grand View Research. https://www.grandviewresearch.com/industry-analysis/europe-online-gambling-market
- The new regulations in Italy's online gambling market will require operators to pay a 3% operating fee on their gross gaming revenue (GGR) after taxes, and a proposed 1% levy on gambling sponsorship revenues, as part of the financial levies [2].
- Each licensee in Italy's reformed online gambling industry is permitted to operate only one website per concession and is barred from running affiliated 'skins' websites [1].
- The Italian gambling trends are projected to shift further with the introduction of the new regulations, potentially setting a benchmark for other countries, for instance in the casino-and-gambling sector, as the new regulations aim to create a more controlled and transparent market [1].
