Italy Imposes β¬7 Million Fee for Fresh 9-Year Online Gaming Permits
Italy's gaming landscape is about to get a massive facelift with the introduction of the country's new online gambling license regime. Here's a rundown of the changes set to transform the industry.
New Licensing Rules
- Timeframe and Availability: A nine-year validity replaces previous shorter terms, with 50 licenses up for grabs at an eye-watering β¬7 million each (expected implementation late 2024).
- Governing Body: The Agenzia delle Dogane e dei Monopoli (ADM) takes charge, enforcing stricter technical guidelines for platform certification covering IT infrastructure, data governance, and game integrity.
Financial Obligations
- Recurring Fees: Operators cough up 3% of their Gross Gaming Revenue (GGR) net of taxes annually.
- Responsible Gambling Investments: A mandatory allocation of 0.2% of GGR funds initiatives promoting responsible gambling practices.
Operational Restrictions
- Certification Demands: Rigorous compliance checks by certification bodies, including evaluations of gaming platforms, apps, and account systems.
- Advertising Policies: Potential modifications to the 2019 Dignity Decreeβs advertising restrictions under Phase 2 reforms in 2025, offering some flexibility for operators.
Focus on Responsible Gambling
- Prevention Tools: Self-exclusion, deposit limits, and real-time monitoring are mandatory features incorporated into operator systems.
- Funding Utilization: Investments to tackle gambling addiction and bolster consumer protection.
Projected Industry Impact
- Market consolidation: Higher startup costs and operational demands favor large operators over smaller contenders.
- Digital Growth: Therefore, user penetration is projected to reach 6.4% in 2025, rising to 4.3 million users by 2029, driven by regulated online platforms.
- Compliance Burdens: Operators face increased administrative obligations due to expanded certification requirements and continual oversight.
This reform aims to strike a balance between market expansion and consumer protection, solidifying Italyβs status as Europe's leading regulated online gambling hub.
- The validity of Italy's new online gambling licenses will be nine years, replacing previous shorter terms, with only 50 licenses available for purchase at an estimated cost of β¬7 million each, starting from late 2024.
- The Agenzia delle Dogane e dei Monopoli (ADM) will enforce stricter technical guidelines for platform certification, focusing on IT infrastructure, data governance, and game integrity.
- Operators will be obligated to pay 3% of their Gross Gaming Revenue (GGR) net of taxes annually, and allocate 0.2% of their GGR for initiatives promoting responsible gambling practices.
- Rigorous compliance checks by certification bodies will be required for gaming platforms, apps, and account systems, with potential adjustments to advertising policies under Phase 2 reforms in 2025.
- Self-exclusion, deposit limits, and real-time monitoring will become mandatory features in operator systems, with investments aimed at tackling gambling addiction and improving consumer protection.
- The reform may lead to market consolidation as larger operators benefit from higher startup costs and operational demands, while user penetration is expected to reach 6.4% in 2025 and grow to 4.3 million users by 2029, largely due to regulated online platforms.
