Italy Looks to Reinstate Legal Gambling Sponsorships

Italy implemented a ban which came into effect in January 2019 under the Dignity Decree (Decreto Dignità), prohibiting gambling companies from sponsoring sports teams or even advertising within stadiums, thereby significantly limiting clubs’ ability to generate revenue. But could that all change in the near future? Join us as we delve into the possibilities.

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Gambling Advertising Restrictions Under Review

Serie A and the upper echelons of Italian football have long advocated a reversal of the ban, citing the detrimental effects of the prohibition on their financial sustainability.

After the initial discussions surrounding the Dignity Decree, the top tier of Italian football forecast a €700 million loss in government revenue in the first three years of the ban, then, several years after its implementation, Serie A alleged that it had cost clubs €100 million in losses annually.

The Italian government and more specifically, Agenzia delle Dogane e dei Monopoli (ADM), Italy’s customs and monopolies agency, which regulates the gaming sector, including online gambling, is now considering lifting the six-year prohibition on gambling sponsorships and advertising in a move that would provide a much-needed financial boost for football clubs.

While the process takes time, the country’s gambling laws may finally undergo the changes needed to permit sponsorships, a move that is widely seen as crucial to revitalising the game in the country.

 Did the Sponsorship Ban Boost the Black Market?

Martin Haijer, Secretary General of the European Betting & Gaming Association (EGBA), has suggested that the restrictions have fuelled the growth of the illegitimate market in Italy, declaring:

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“The country’s ban on advertising for licensed gambling operators is clearly favouring the black market. Without a sufficient level of advertising, there is no way for Italians to tell the difference between a gambling website which is licensed in Italy and applies the country's consumer protection laws and one that is not.”

There is also widespread consensus in Italy that the effects of the ban have been contrary to what lawmakers envisaged in 2019, with many echoing Haijer’s sentiments.

 Revitalising Football: A Key Aim of Lifting the Ban

After approval by the Senate’s Culture Commission, it is now up to the Chamber of Deputies to decide on the future of the Dignity Decree, but Italian media outlets have announced that the country’s Sports Minister, Andrea Abodi, is preparing to negotiate terms for new gambling sponsorships with football clubs.

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The pivotal reason for the proposed annulment of the 2019 sponsorship ban is the revitalisation of Italian football, with a key proposal being the allocation of a minimum 1% of the proceeds of sports betting and sponsorships channelled towards modernising stadiums, enhanced support of women’s football, improving grassroots facilities and developing youth teams.

Some lawmakers remain stubbornly sceptical of a positive outcome that the review of the Dignity Decree and the potential changes regarding gambling sponsorships that seek to revitalise football would have.

Ultimately, overturning the ban enjoys widespread support, evidenced by the backing of both political parties and football’s governing bodies, who recognise the importance of repealing or at least modifying the Dignity Decree.