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Divisive Italian Online Gambling Reform on the Cards for 2024
By Shane Addinall Jan 15, 2024 LegalityItaly has proposed a revamp of its Gambling Act, labelled the Reorganisation Decree. Rather than strengthening the local market, there are concerns that it will focus on government income generation and dramatically reduce the number of licensed casinos.Recent reports by industry experts revealed that the Italian government is looking to make sweeping reforms to its current Gambling Act in 2024. While we welcome reforms aimed at improving player safety and ensuring that online gambling remains a viable proposition for the companies looking to invest in the sector, those on the cards for Italy look to be focused solely on filling government coffers.
Levies, Taxes, and More Fees
While the announcement of the newly approved Reorganisation Decree does mention essential topics, such as how to protect the youth from undue exposure to gambling content, broader reforms to safer gambling programs and even new AML (anti-money laundering) regulations, the real meat of the decree centred around a wide range of increased fees and levies which operators will bear the brunt of.
Here are some of the amendments to operator costs that have raised concerns:
- A €7,000,000 “authorisation fee” for each new gambling license.
- New licensees will also pay a 3% operating fee.
- An annual safer gambling tax of 0.2% of net revenue will also apply.
The new decree limits the number of active licenses each gambling company, referred to as a concessionary, to only five. The stated aim of this limitation is to prevent the provision of multiple white-label gambling sites under a single concession.
The New Decree Faces Backlash
While it comes as no surprise that Italian Prime Minister Giorgia Meloni and Treasury Deputy Minister Maurizio Leo are singing the praises of the Reorganisation Decree bodies closer to the gambling business have raised significant concerns.
Online gambling trade body Logico has called on the Italian Gambling Authority (ADM) to justify the thirty-five-fold increase in the licensing fee. The 2018 licensing fee was a nominal $200,000, a far cry from the new figure of €7 million! The current estimate is expected to force a massive decline in licensed operators, with only fifty of the current eighty-three predicted to extend their stay in the country.
Maarten Haijer, Secretary General, EGBA, commented on this previously, saying:
Quote“The proposed increase in licensing fees is unparalleled and unheard of; it would make Italy the most expensive country in Europe to obtain an online gambling license. Together with the other restrictions in its gambling market, such as the local advertising ban, this proposed fee hike will make Italy a closed shop for new market entrants and lead to an exodus of existing licensees.”
He also addressed the potential swell of illegal casinos, saying:
Quote“This also raises concerns about compliance with EU law. We urge the Council of Ministers to reconsider the proposal, as it will make the country’s online gambling black market problem even worse, not better.”
From a state revenue generation perspective, the increase in fees more than covers the decline in licensed operators. However, it does not account for the power this hands over to the black market gambling vertical, which will swoop in to fill the vacuum left by departing legal casinos.
Will Prohibition Be the Solution?
In a clear sign that they are intent on following this money-first approach rather than working towards a mature online casino industry that benefits all parties, the ADM has begun an aggressive blacklisting tirade which saw them increase their list of blocked gambling sites to 10,076.
However, if the internet has taught us anything since its inception, human nature demands that we strive for independence. Whether it is via bitcoin casinos, the use of VPNs or other means, if the Italian government doesn't create a satisfying online gambling industry, players will turn to unlicensed operators for their casino entertainment needs.
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