Industry insiders warn: Italy’s online gambling industry risks being destroyed by new regulations
Italian lawmakers and certain lobbyists are rewriting online gambling legislation. The new guidelines could lead to a mass exodus from the regulated space, something gambling industry players hope to prevent.
At a meeting with Italian lawmakers last week, representatives from more than 10 gambling industry trade groups came together to express their concerns. The conference was hosted by the Milton Friedman Institute of Italian Political Economy in Italy.
The group unanimously warned that if the proposed changes were implemented without careful consideration, it could have "adverse consequences" for the entire gaming industry. They believe the changes, including a 35% increase in licensing costs, will lead to more illegal activity, less consumer protection and a squeeze on small and medium-sized businesses.
GAMBLING: A MARKET, A RECONSTRUCTION
Italy is reportedly working on developing a unified policy covering land-based and online gambling. However, some current proposals do not reflect equality between the two.
The central theme of the industry message is "Gambling: One Market, One Reorganization". This points to the need for a unified approach to regulating online and land-based gambling.
The group believes the current regulatory framework creates an unfair playing field. It encourages the expansion of the illegal sector and undermines efforts to protect consumers.
One of the most controversial issues in the industry is the proposed increase in the cost of online gambling licenses. The proposed 35-fold increase from €200,000 to €7 million ($218,600 to $7.65 million) was deemed excessive and unreasonable.
The industry has warned that this huge increase will severely limit the number of potential operators, potentially reducing the operator pool from the current 91 to just 20. This, in turn, could stifle competition and limit innovation. Ultimately damaging the overall health of the industry.
In addition to the economic impact, the industry group is also deeply concerned that the proposed changes will have a negative impact on public interest objectives. This also includes negative impacts on consumer protection and responsible gambling schemes.
Participants believed that restructuring online gambling without addressing the physical market would create loopholes and opportunities for illegal operators to thrive. If the Italian government does not take a comprehensive approach to the entire gambling industry, it risks exacerbating inequality, encouraging illegal activity and hindering the growth and development of a responsible and regulated industry.
Unity in the game
The industry's message is reflected in ongoing concerns about the formal approach to gambling reform in Italy. The government has been criticized in recent months for its inconsistent approach and lack of consultation with industry stakeholders.
The unanimous opposition from legal gambling industry trade groups highlights the need for a more comprehensive and balanced approach. They say the government must consider the interests of operators and consumers, not just the wishes of a small group of lobbyists, to develop a stable and viable market.
The organization also stressed the need for policymakers to heed the warnings from the legal gambling industry. They must take a considered approach that prioritizes responsible gambling, protects consumers and ensures a level playing field for all operators. In this way, Italy can ensure its economic vitality and promote responsible gambling practices.
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Source: www.casino.org
