Italy: AGCOM speaks out against marketing ban for gambling
Italy's strict gambling advertising ban has drawn criticism from the country's communication sectors watchdog, AGCOM. The ban, which took effect last year, is ineffective in preventing gambling addiction and hurts the sports and media industries.
The ban is hurting Serie A, Italy's top professional football league, which is losing millions of euros due to gambling partnerships. This puts it at a disadvantage compared to other major European leagues that still allow gambling advertisements.
The ban applies to all types of gambling advertising on television, radio, online services, and social networks. It also forbids sports teams from having sponsorship deals with betting providers.
According to AGCOM, media companies are also feeling the effects, losing a significant source of income in the process. The authority argues that the provisions of the Italian law are not in line with EU advertising guidelines, which allow for limited gambling advertising under certain conditions.
The ban has also been criticized for strengthening the illegal gambling market, making it harder for customers to differentiate between licensed and unlicensed providers. This increases player protection risks and prevents new companies from entering the market.
The gambling industry employs over 300,000 people in Italy, and if jobs at the affected media companies are included, the number rises above half a million. The industry also contributes over €10 billion in taxes to the state and generates 1% of the country's GDP.
AGCOM believes that the main objective of the ban, to combat gambling addiction, has not been achieved, as problem gamblers will find ways to gamble despite the ban. The ban also failed to address the issue of illegal gaming machines in bars and betting shops.
The Italian government has yet to respond to these criticisms. The future of the ban remains uncertain.
Losses in the Millions for Serie A
Italy's controversial gambling advertising ban has taken a heavy toll on Serie A, the nation's top professional football league. According to estimates, the league is losing between €100 million and €150 million annually due to the loss of gambling partnerships. This puts Serie A at a significant disadvantage compared to other major European leagues like Spain's Primera Division and England's Premier League, which still allow gambling advertisements.
The Draconian Ban
Italy's gambling advertising ban, known as the Decreto Dignitá (Dignity Decree), is a wide-reaching measure that applies to all forms of gambling advertising across Italian television, radio, online services, and social networks. It also bars sports clubs from having sponsorship deals with betting providers. The aim of the law is to combat gambling addiction, but its effectiveness has been called into question.
Media Companies Take a Hit
In addition to the sports industry, Italy's gambling advertising ban has also affected the country's media companies. AGCOM, the Italian supervisory authority for the communications sector, states that many national TV and radio stations have lost a "direct source of income" as a result of the ban. These broadcasters are also disadvantaged in comparison to other companies based in other European countries that can still reach Italian audiences.
Legal Compliance
AGCOM has questioned the legality of the advertising ban, citing EU Directive 2018/1808, which regulates the provisions of EU-wide advertising guidelines. According to this directive, a complete ban on advertising against a specific product or industry is only legally compliant if it is "justified, proportionate, and necessary." However, AGCOM argues that the Italian advertising ban does not meet these criteria.
Impact on Underground Market
By effectively outlawing gambling advertising, the Italian ban creates an environment where problem gamblers are more likely to gravitate towards illegal gambling operators. This makes it more challenging to protect players, as there are fewer opportunities for reputable providers to lure customers through targeted advertising. It also discourages new entries into the market, potentially reducing the industry's workforce, which currently stands at over half a million people.
Law's Ineffectiveness
AGCOM asserts that the ban's main objective - to combat gambling addiction - has not been achieved after more than a year of its implementation. Problem gamblers can easily bypass the ban by seeking out illegal gambling services. The law has also failed to address the larger issue of illegal gambling machines in bars, pubs, and smaller betting shops.
AGCOM is calling for an immediate suspension of the advertising ban to address these issues. The Italian government has yet to respond to these concerns.
A Look at the Numbers
The Italian gambling industry generated €10 billion in taxes for the state in 2018. It also accounted for 1% of the country's total GDP. With over 300,000 jobs and additional losses at media companies, the ban's impact extends far beyond just gambling operators.
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Source: www.onlinecasinosdeutschland.com
