Italy Presses Ahead with Gambling Law Reform Despite Industry Opposition

Italy is set to revamp its online gambling sector in 2024, with the government greenlighting a decree from the Ministry of the Economy and Finance (MEF) to reorganize the industry. The move is seen as a significant step towards modernizing the country's gambling laws, but it hasn't been without its challenges.

The primary goal of the new legislation is to protect players, particularly minors, combat illegal activities, and boost tax revenues for public initiatives. To achieve this, the decree includes measures such as cracking down on illegal gambling, implementing self-limitation tools, and sending out warning messages. Additionally, operators will face stricter rules based on deposit levels.

One contentious aspect of the reform is the sharp increase in licensing fees, which will rise from €200,000 to €7 million. Operators will also be subject to a 3% operating fee on their net revenues, with an additional 0.2% annual fee for responsible gaming initiatives.

The reformed concessions system aims to limit each operator to a maximum of five licenses, aiming to eliminate the use of 'skin websites' and single concessionaire product sales. The government anticipates significant revenues from these changes.

Despite the government's intentions, several measures have faced strong opposition from industry stakeholders. Some argue that the proposed changes will disproportionately harm smaller businesses. There is a call for more industry involvement in the decision-making process.

Despite industry protests, the Italian government remains committed to the reform, emphasizing the economic benefits and enhanced customer safety. However, the lack of industry engagement raises concerns about unintended consequences as the reform moves forward.