Italy: Reform of the Online Gambling Law in 2024
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9 Jan 2024 •
Reading time: 2 minutes The Italian government has approved the reorganization decree proposed by the Ministry of Economy and Finance, marking a new step in the reform of online gambling and betting laws in Italy. Obtaining a license will become more expensive.
However, this reform aims to improve the protection of players, especially minors, and to be more effective in combating criminal activities such as money laundering and terrorism financing. Additionally, the state should benefit from increased tax revenues.
Explosive Increase in License Costs
One of the most significant changes is the increase in license costs. Companies wishing to obtain a gambling license in Italy will have to pay 7 million euros per license. Companies can apply for a maximum of five licenses. License holders will also have to pay an operating fee of 3%.
In addition, licensed online operators will have to pay 0.2% of their profits. This fee will be used to fund responsible gambling campaigns.
The European Gaming and Betting Association (EGBA) has recently criticized the proposed license costs, deeming the amount of 7 million euros for an Italian license far too high. This could make the illegal (online) gambling market in the country even more attractive.
The Italian trade association Logico has also criticized the astronomical increase in license costs, which were only 200,000 euros in 2018.
Expectations of the Italian Government
The Italian government expects that 50 of the 83 active online casinos will submit a license application. The reorganization has been praised by the Deputy Minister of Finance, Maurizio Leo, who stated that the approval of the decree will enable the government to end legal disputes over license extensions.
Despite the recommendation for a revision of concessions, the decree does not envisage tax changes for online gambling. The government will wait for the final revision of the laws governing retail gambling establishments.
Prime Minister Giorgia Meloni has supported the revision of the gambling sector in Italy (both land-based and online), considering it a key economic contributor that generated tax revenues of 11 billion euros in 2022.
Illegal Market and Countermeasures
The revision of online gambling laws in Italy, the first since 2011, appears to be an absolute necessity. According to an article from La Gazzetta dello Sport, the illegal gambling market in Italy is enormous, with an annual turnover of 25 billion euros, 75% (18.5 billion euros) of which is generated by illegal online gambling companies.
To combat the illegal online offering, websites without a license can be directly blocked, as is the case in Belgium, for example. In addition, payments to and from illegal gambling sites can be frozen.