Italy’s Online Gambling Reforms Face Criticism from Trade Association Logico

Logico, a prominent trade association in Italy, has voiced significant concerns over the proposed online gambling reforms by the country’s Ministry for Economy and Finance (MEF). The association, while acknowledging the need for updated regulations, warns that the new measures could adversely affect market competition.

Italy’s online gambling sector at a crossroads! Logico challenges proposed reforms, citing concerns over steep licence fee hikes and competition.

A central point of contention is the MEF’s proposal to drastically increase the licence authorisation fee from €200,000 to a staggering €7 million. Logico argues that this hike would drastically reduce the number of concessionaires, potentially from the current 83 to about 20, thereby diminishing competition. The MEF justifies this fee, pointing to the market’s domination by major players like Entain, Flutter, Lottomatica, SKS365, and SNAI.

Logico and other operators are seeking a more balanced approach to regulation, emphasizing the need to safeguard the market from unlicensed gambling. They are advocating for stricter measures against payment service providers (PSPs) that facilitate unlicensed operators, a sector estimated to generate €1bn in gross revenue annually.

Keep an eye on Italy’s evolving online gambling landscape. These reforms and the industry’s response will shape the future of digital gaming in the country, impacting operators, players, and the overall market competitiveness.

The European Gaming & Betting Association (EGBA) echoes these concerns, suggesting that Italy’s 2018 ban on gambling adverts has inadvertently bolstered black market operators. This ban, according to the EGBA, limits the ability of licensed operators to promote their services, thus favoring unregulated entities.

“Nearly €1bn in online gross gaming revenue in Italy is lost to black market websites annually, equivalent to the combined regulated online gambling revenue of eight other EU member states,” the EGBA stated.

Reflecting the complexity of gambling regulation, the Italian media and communications regulator AGCOM recently fined Google and Twitch for breaches of the country’s gambling ad ban. This action, resulting in fines against Google Ireland and Twitch Interactive Germany, followed an investigation into over 20,000 videos across YouTube and Twitch promoting gambling activities.

As Italy navigates these regulatory changes, the balance between fostering a competitive, regulated market and curbing unlicensed gambling remains a key challenge. Logico’s stance and the broader industry response highlight the critical need for regulatory measures that support a healthy and competitive online gambling environment in Italy.