Despite Italy's gambling market being lauded as progressive its links to the past can easily cause unexpected challenges for operators and video streaming platforms as YouTube and Twitch discovered when AGCOM fined them over €3 million!
Gambling regulation in Italy presents many unforeseen challenges for international casino operators. This is primarily because while the Italian Gambling Act is lauded as being progressive and competitive, it has many hooks back to older regulations that can cause conflicting interpretations of what is allowable and what is not.
Earlier this month, YouTube (owned and operated by Alphabet Inc) and Twitch (owned and operated by Amazon) found themselves facing legal action from Italy's media watchdog, Autorità per le Garanzie nelle Comunicazioni (AGCOM).
AGCOM Levies Over €3 Million in Fines
The country’s Communications Authority served the companies with fines totalling €3,150,000. Google Ireland Ltd is being held responsible for €2.25 million and Twitch Interactive Germany GmbH for the remaining €900,000.
According to the legal action, both companies are accused of being in breach of Article 9 of the “Dignity Decree”, which makes it illegal to promote casino bonuses and games in a manner that puts its senior citizens, youth, gambling addicts and other at-risk parties in danger of gambling harms.
According to the Italian watchdog, it found over 80 YouTube and Twitch channels featuring over 20,000 videos that advertise betting, scratch cards, and slot machines in a way that violates the Gambling Act.
Why Video Content Is a Platform Problem
Portolano Callavo, a leading digital media law firm in Italy, explains the intent of the Dignity Decree’s view on advertising as follows:
Quote“The ban covers any form of advertising, including indirect advertising, relating to games or betting with cash prizes, however, carried out and by any means, including TV and radio broadcasting, the press, billboards, internet, digital and electronic tools, and social media.”
They further note that in 2018, a supplement was added that clarifies that influencers and parties with a commercial interest in the content are equally liable.
The following part of the AGCOM notice supports this position:
Quote“In both proceedings, the companies were held responsible as owners of the means of dissemination of the videos published by third parties and with which they had specific commercial partnership contracts.”
As both YouTube and Twitch had commercial relationships with the accounts hosting these “illegal” gambling videos, and they provided the primary means for sharing this “illegal” content with Italian residents, they are being held liable by the government.
A Consistent Application of the Law
The view that AGCOM has applied this law more stringently in the case of Alphabet and Amazon as a way to rake in bonuses for the holiday season needs to be revised by how they handled a similar case with the viral video platform TikTok.
The Communication Authority reported:
Quote“With Resolution no. 316/23/CONS, the Authority, however, closed the proceedings against TikTok Technology Ltd., having noted the absence of a contractual relationship with the 30 content creators who uploaded the disputed contents.”
While TikTok videos tend to garner far more views per video based on their short duration, AGCOM dropped a lawsuit against the company despite having found 30 users promoting unlicensed gambling in Italy due to no commercial relationship.
In this case, TikTok was required to assist with removing the offending content without any demand for financial compensation.
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