Italy Introduces €7 Million Fee for 9-Year Online Gaming Permits
Italy Introduces New Online Gambling Licensing Regime for a More Regulated Market
Italy has taken a significant step towards a more regulated, consolidated, and financially robust online gambling market with the introduction of a new licensing regime. The new system, featuring a nine-year license validity and a €7 million fee per license, is set to bring about several transformative changes.
Market Consolidation and Reduced Operators
The new regime replaces the previous system where licenses cost €200,000. The steep fee, coupled with stricter criteria, is expected to weed out smaller players and non-serious operators, consolidating the market. The current number of approximately 81 license holders is set to drop sharply to around 33-46 consolidated operators.
Reduction in Number of Gambling Websites
The regime bans multi-brand "skins," meaning each license corresponds to a single domain. This will reduce the roughly 420 websites (320 Italian-run and 100 foreign-run) to about 50 active websites, streamlining market offerings and potentially reducing consumer confusion and fragmentation.
Revenue Generation and State Control
The government targeted €350 million in revenues from the fees and met this goal with 46 license applications submitted. This injection substantially increases state revenue from licensing fees and is part of a broader effort to modernize and regulate the gambling market more strictly.
Enhanced Regulatory Oversight and Market Transparency
The new licensing framework aims at higher transparency and better regulatory oversight by requiring operators to comply with stringent financial and technical criteria, including Anti-Money Laundering (AML) and responsible gaming measures.
Impact on Operators
Major international and domestic operators such as Betfair, Bet365, William Hill, Snaitech, Sisal, and LeoVegas have been approved to move forward under the new system, affirming its appeal to established players but creating barriers for smaller entrants.
License Fee Structure
The €7 million fee payable in two instalments (€4 million upfront and €3 million on operation launch) ensures significant upfront capital commitments, deterring speculative bids and encouraging stable, long-term market participation.
Transitional Arrangements
Existing licenses, originally expiring end-2024, had their validity extended into 2025 and further to August 2026, allowing operators to adjust to the new regime.
This licensing overhaul represents Italy's move towards a more regulated, consolidated, and financially robust online gambling market with fewer but stronger operators, greater state revenue, and enhanced consumer protections. It is expected to reshape the industry by optimizing market structure, prioritizing operator quality, and reducing online gambling fragmentation.
A noteworthy recent legal development not directly triggered by the licensing changes but relevant is the Italian Constitutional Court invalidating the ban on devices capable of online gambling in public venues. This could affect how gambling is accessed physically despite the online license restructuring.
The new regulations are also expected to significantly curb illegal gambling activities and ensure a safer gambling environment for Italian consumers. The industry recognizes Italy as a lucrative and stable market for online gambling operations, with gambling taxes predicted to increase by €350 million over the next two years. The reform is part of a larger initiative to promote responsible gambling in Italy.
In the new online gambling licensing regime, the steep license fee will likely lead to a reduction in the number of operators, as smaller players and non-serious operators may be weeded out, consolidating the market.
With the new regulation, the Italian government aims to generate substantial revenue from licensing fees, and the injection of €350 million is expected to increase state revenue significantly.
