Italy is progressing with its ‘reorganisation of gambling’, as the Customs and Monopolies Agency (ADM) enters the final stages of implementing a new framework for online gambling concessions. Last Friday, the ADM submitted the documentation for this framework to the Treasury. The Treasury and the Council of State will provide binding opinions on these proposals.
Once approved, this framework will become part of the ‘Reorganisation of Gambling’ decree, overhauling Italy’s online and land-based gambling laws. The Ministry of Made in Italy (formerly the Ministry of Enterprise) will then send the technical rules to the European Commission for evaluation, initiating a three-month ‘standstill period’ before adoption in Italy.
New Licensing Framework and Fee Structure
The Ministry of the Economy and Finance (MEF) has endorsed a new licensing framework, which introduces a €7 million fee for nine-year online gambling concessions. This fee significantly increased from the €200,000 for concessions granted in 2018. MEF considers this increase appropriate for a market dominated by major gambling companies like SNAI (Playtech), Flutter Entertainment, Lottomatica, and Entain.
ADM has revised concession terms to ban skin gambling websites, limiting operators to one brand per license. As reported by Agipronews, each permit is now restricted to “one concessionaire, one website.” Additionally, ADM mandates that operators “activate an app for each type of product category: betting, casino, poker, and bingo.”
Stricter Regulations and Enhanced Controls
New concessions will be subject to stricter scrutiny regarding IT security and game integration between operators and suppliers. Once the decree is in effect, licensees must ensure that their games and IT systems are verified by an external certification body. ADM will also implement enhanced controls to monitor player funds and their management by licensees.
As ADM advances towards final procedures, it plans to establish a D-day for launching the new licensing regime. Antonio Giuliani, Head of ADM’s online office, stated, “The Agency will set a D-day for the current operators to start collecting bets with the new regime.”
Giuliani added, “Other operators will have up to six months to launch their systems, as required by law. We will ensure equal conditions for current licensees and new operators who obtain the licence.”
Anticipated Impact and Future Prospects
If the new framework launches in 2024, ADM will achieve a key objective of the Reorganisation of Gambling decree: resolving long-standing legal disputes over Italian gambling concessions granted since 2011. This Reorganisation Decree represents the first regulatory evaluation of Italian gambling since the authorization of online gambling in 2011. The decree aims to protect players, especially minors, combat criminal activities, and increase tax revenue for government projects and social initiatives.
The implementation of this new framework is expected to significantly change the Italian gambling landscape, ensuring a more regulated and secure environment for both operators and players.
Source: Italy begins final procedures to settle new licensing regime, CasinoBeats, July 9, 2024.