Italy is moving forward with its plans to reorganize the gambling industry, with the Customs and Monopolies Agency (ADM) taking the final steps to establish a new framework for online gambling licenses. Last week, the ADM submitted the necessary documentation for this framework to the Treasury for review. The Treasury and the Council of State will provide their opinions on the proposals before they are approved.
Once the new framework is in place, it will be part of the overall reorganization of Italy’s gambling laws, both online and land-based. The Ministry of Made in Italy, previously known as the Ministry of Enterprise, will then send the technical rules to the European Commission for evaluation. This will kick off a three-month ‘standstill period’ before the rules are officially adopted in Italy.
Under the new licensing framework endorsed by the Ministry of the Economy and Finance (MEF), online gambling concessions will come with a hefty €7 million fee for a nine-year license. This fee is a significant increase from the €200,000 fee for concessions granted back in 2018. The MEF believes that this increase is justified, given that the market is dominated by major gambling companies such as SNAI (Playtech), Flutter Entertainment, Lottomatica, and Entain.
In addition to the increased fee, the ADM has made revisions to the concession terms to prohibit skin gambling websites. Operators will now be limited to one brand per license, and each permit will be restricted to “one concessionaire, one website.” Furthermore, operators will be required to activate a separate app for each type of product category, including betting, casino, poker, and bingo.
The new concessions will also face stricter regulations, particularly concerning IT security and game integration between operators and suppliers. Licensees will be required to have their games and IT systems verified by an external certification body. The ADM will also implement enhanced controls to oversee player funds and how they are managed by licensees.
As the ADM moves closer to finalizing the new licensing regime, plans are being made to establish a deadline for current operators to start operating under the new rules. Antonio Giuliani, Head of ADM’s online office, has stated that there will be a set deadline for current operators to transition to the new regime. New operators will have up to six months to launch their systems in compliance with the law, ensuring a level playing field for all licensees.
If the new framework is launched in 2024, the ADM will achieve a key goal of the Reorganization of Gambling decree by resolving long-standing legal disputes over Italian gambling concessions granted since 2011. This decree represents the first comprehensive evaluation of Italian gambling regulations since online gambling was authorized in 2011. The aim is to protect players, particularly minors, combat criminal activities, and increase tax revenue for government initiatives.
Overall, the implementation of this new framework is expected to bring significant changes to the Italian gambling industry, creating a more regulated and secure environment for both operators and players.
