Italy Unveils Ambitious Online Gambling Reforms in 2024, Balancing Player Protection and Revenue Boost!

The decree, proposed by the Ministry of the Economy and Finance, aims to protect players, combat criminal activities, and increase tax revenue for government projects.

Under the new licensing framework, online gambling operators in Italy will face a €7 million authorization fee for each license, along with a 3% operating fee. Additionally, concessionaires will be required to pay an annual fee of 0.2% of their net revenues, funding responsible gaming campaigns overseen by a new gambling department reporting to Italy's Customs and Monopolies Agency.

To address concerns, the number of licenses available for each operating firm will be limited to five. This move aims to curb the practice of 'skin websites' selling single concessionaire products, a concern raised by the ADM.

The government anticipates significant revenue, with €350 million expected from competition and an annual revenue of 100 million from concession fees. However, the proposed fee has sparked competition concerns, with industry bodies Logico and Acadi urging the government to consult the gambling industry before proceeding.

Treasury Deputy Minister Maurizio Leo, overseeing the overhaul, welcomed the decree, emphasizing that it would resolve legal disputes on licensing extensions and implement necessary measures to counter illegal gambling, protect players, and enforce customer restrictions.

High Court judges had urged the government to establish a new framework due to legal challenges by operators. The decree proposes measures such as self-limitation on gambling, cautionary messages, and customer restrictions based on deposit levels. It also aims to combat the €1 billion black market by blocking unlicensed websites and illegal operator transactions.

Despite recommending changes for online gambling concessions, the decree does not include tax adjustments, as the Ministry of the Economy and Finance awaits the finalization of laws governing retail gambling venues. Prime Minister Giorgia Meloni supports the reorganization, highlighting the sector's economic contribution of €11 billion in tax revenues in 2022.