Italy cuts gambling sites from 407 to 52 in radical reshuffle
Italy’s customs and monopolies agency, Agenzia delle Dogane e dei Monopoli (ADM), have introduced a monumental change in its gambling industry that will see licenses cut from 407 to 52.
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These changes include a €7 million license fee, a ‘one domain’ rule for operators, and mandatory player protection policies, such as setting deposit and spending limits.
This new framework is an attempt to regain control of the gambling industry by changing the licensing rules and creating stronger player protection policies.
Reshaping the landscape
From November 13th, the new policy will require:
Each operator to be under a ‘one domain’ rule: This means that each license will be assigned to a specific website, putting a stop to third-party platforms taking licensed gaming products and reselling them.
A new fee: Operators will have to pay €7 million for a new license.
Stronger player protection rules: It will be mandatory for players to set themselves deposit and spending limits, and it is up to the operator to ensure this happens.
Stronger cybersecurity: Establishments such as internet cafes will need to have blocks in place to make sure that nobody can access unregulated casino sites.
This is not the first policy adjustment Italy has made, as it also currently has a nationwide ban on gambling-related advertising.
Recent reports suggest that European countries are losing billions of euros to the illegal online gambling industry every year, with 92% of gambling-related content being associated with unlicensed operators.
Italy is reshaping its €21 billion a year industry in the hopes of curbing unregulated expansion and keeping players away from black market sites.
The surviving operators
There will now be 46 companies allowed to continue operating in Italy, running the 52 remaining licenses.
This new framework is likely to benefit the larger operators as they have the means to absorb the new costs and advertising laws.
Some of the larger companies have already found ways to skirt the advertising rules, with Betsson and bet365 forming partnerships with football clubs that allow them to advertise.
Smaller companies will face challenges because of this. They won’t be able to advertise themselves due to the heavily restricted promotional channels, and the cost of a new license is a high goal to achieve, as well as the annual tax costs.
Whilst these heavy restrictions will make it harder for smaller operators to establish themselves, some in the industry have also suggested that this might actually improve their chances, as hundreds of competing sites will have been shut down.
Economic affect
The new licensing rules have been even more economically successful than the ADM was hoping. Their original estimate was that they would gain around €300 million from the license fees. Instead, they have already earned €365 million.
Previously, each license cost the operator €200,000, but the ADM have made a significant increase with the rules; each license now costs €7 million.
Online casino operators are charged a 25.5% tax on gross gaming revenue, meaning Italy will now collect around €8 billion in taxes and fees from gambling operators every year.
While this sounds like a high amount, it has actually decreased. In 2022 and 2023 it was over €11 billion. This suggests that the license fee has risen to account for the fall in tax revenue.
Impact on players
Players will be required to agree to stricter terms and conditions if they want to use online casinos. Whilst some might find this to overcomplicate the system, it is ultimately done for players’ safety.
Players will also need to adjust which sites they use, as the casinos which don’t acquire a new license will soon be closed down.
The new rules for player protection won’t affect all players, as some may already take the precautions that are now becoming mandatory, such as deposit and spending limits.
These limits will need to be set before you wager any money. If this isn’t done within six months, your betting privileges will be suspended, although these accounts can be reactivated within three years.
Further protection
Other areas in Europe have been making changes to their gambling regulation, with the Netherlands introducing more transparent rules. The Republic of Ireland has even established a new regulatory authority focused on player protection and effective penalisation.
However, Italy is making some of the most severe changes yet. As well as their new licenses, new cybersecurity rules are being put in place.
To enforce these new licenses, a new shield is being introduced that will block access to unauthorised gambling sites.
It will be mandatory for establishments such as internet cafes to use these shields, facing the threat of fines or criminal charges if they don’t.
What’s next?
These are some of the international operators that have already acquired a new license:
William Hill
Betfair
Bet365
LeoVegas
Sisal
Any online casinos that don’t have new licenses yet have until March 2026 before they won’t be allowed to operate anymore.
Is this a blueprint for the rest of Europe?
Cutting down on the number of regulated gambling sites represents a leap of faith that Italy is taking in an attempt to tackle its illegal gambling market, which is estimated to be worth around €1 billion.
Italy’s reshuffle could serve as a blueprint for emerging gambling hubs around Europe and ones which are looking to do as Italy has done.
Fact-checked by Eoin McMahon
Content Team Lead