YouTube and Twitch convicted in Italy for illegal gambling advertising

In a bold move to strengthen the regulation of gambling advertisements, the Italian Authority for Communications Surveillance (AGCOM) has imposed substantial fines on YouTube and Twitch. The two streaming giants were penalized for violating the ban on gambling advertising in Italy.

Hefty fines 

YouTube, a subsidiary of Google Ireland Ltd, is required to pay a fine of 2.25 million euros, while Twitch Interactive Germany, a subsidiary of Amazon, has been hit with a fine of 900,000 euros. These sanctions stem from the dissemination of over 20,000 videos on their platforms, promoting various forms of gambling, including sports betting.

Violation of strict rules 

Both streaming services were found guilty of forming commercial partnerships with video creators who published the incriminated content. This decision goes against the Italian Dignity Decree, which came into effect in July 2018, imposing a strict ban on all forms of gambling advertising across multiple media, including sports team jerseys, stadiums, and various media platforms.

Companies’ response 

In response to AGCOM’s intervention, YouTube and Twitch have removed the gambling ads and have been instructed to implement measures to prevent similar uploads in the future. At present, neither YouTube nor Twitch has commented on these fines.

Legal precedents

Whether these fines will actually be paid remains uncertain. In a previous case involving Google, a similar judgment by AGCOM was overturned by an Italian court. The court ruled that Google was not responsible for the content of videos on its platform, although it could be requested to remove illegal content.

The illegal gambling market in Italy 

The context of these fines is also influenced by the strength of the illegal gambling market in Italy. According to La Gazzetta dello Sport, illegal online casinos in Italy generate a turnover of 18.5 billion euros. The European Gaming and Betting Association (EGBA) has criticized the Italian ban on gambling advertising, stating that it inadvertently favors the black market.

These fines against YouTube and Twitch mark a significant step in Italy’s efforts to control gambling advertising and combat addiction. They also highlight the challenges faced by regulators and technology companies in a constantly evolving digital landscape. As the fight against illegal gambling continues in Europe, the impact of these measures on the legal and illegal market remains to be seen.