Following lobbying from the government of Malta, the European Commission (EC) has announced the extension of Italy’s new tender for online gambling concessions.
As a result of the decision, the tender has been extended until 18 November, with Maltese officials highlighting potential compliance requirement issues.
Key to the case put forward by the Malta Gaming Authority (MGA) was that there are ‘unnecessary barriers’ on B2B businesses.
In response, the MGA warned the EC: “Member States should recognise that B2B operators may already hold licences in other Member States and may be subject to myriad requirements and checks, which could easily be mutually recognised if a cooperation framework is set up for this purpose.”
In order to ensure that the new framework isn’t “an obstacle to both the freedom of establishment and the freedom of the provision of services within the internal market”, Italian authorities have been told to provide ‘sufficient justification’ for imposing additional technical requirements on B2B businesses licensed in Europe.
Off the back of this, Italy’s government is set to put forward a response prepared by the Treasury addressing Malta’s concerns and affirming the legal requirements for new online gambling concessions.
Upon the conclusion of the ‘standstill period’, ADM, Italy’s Agency of Customs and Monopolies, will launch the new licensing regime.
As specified by the Ministry of Economy and Finance (MEF), the new Italian online gaming concessions will last for nine years, priced at €7m per individual licence.
Additionally, licensees will pay an annual 3 per cent licence fee on gross gaming revenue (GGR), net of gambling taxes and winnings. MEF will allow current licences to be extended for an additional year until 31 December, in line with Italy’s Budget 2024 rules.
The B2C rules will restrict licensed operators to “one app per gambling product type and one website”. The ADM will strictly prohibit and penalise the use of skin websites promoting branded products.
The ADM expects around 50 operators to apply for new licences, with projected revenue from concessions totalling €350m and fixed annual concession fees generating €100m.
All online gambling licences must implement new responsible gambling controls, including options for users to set limits on time and spending, as well as notifications to alert users when these predefined limits are exceeded.
