The financial police of Trentino, Italy, have initiated an investigation into the online gambling activities in the small town of Calliano. With just over 2,000 residents, Calliano ranks second among Italian small towns in terms of online gambling activities. In 2023, the average betting amount per resident was 12,749 euros, with total gambling exceeding 19 million euros.
This investigation follows the release of a report titled "The Spread of Gambling in Small Italian Towns" by the Italian General Confederation of Labour (CGIL, the second largest trade union in Europe), the Consumer Association (Federconsumatori), and the Consumer Research Institute (Isscon). The study collected and analyzed data from the Italian Customs and Monopolies Agency to reveal gambling trends in small communities. "How can per capita online gaming consumption in such small towns exceed 1,000 euros per month?" CGIL asked.
Lorenzo Conci, the mayor of Calliano, confirmed the investigation, stating, "Officials are currently conducting a thorough review of the data, with a focus on information provided by the customs agency." Recently, Conci met with the leadership of the Rovereto financial police, the local authority responsible for the Val Lagarina area.
Call for Change
The report explored online gambling activities in 3,232 Italian towns with populations between 2,000 and 9,999, representing a quarter of Italy's total population and 41% of its towns. This investigation follows the earlier "Black Book of Online Gambling," which documented trends in larger areas.
Despite challenges due to data dissemination restrictions established by the parliament in December 2019, the report revealed the significant role smaller towns play in the gambling sector. The Customs and Monopolies Agency reported that the total gambling amount in 2023 reached 150 billion euros. Although larger centers showed higher average gambling levels, the data from small towns displayed more pronounced anomalies.
The report emphasized that municipal authorities need to actively participate in regulating gambling to mitigate its potential negative impact on community health and welfare, and to understand the phenomenon of gambling at the municipal level to develop effective regulations.
Italian Gambling Legislation
Additionally, Italy's highly anticipated online gambling license tender faces a one-month delay due to concerns submitted by Malta to the European Commission. The tender, initially expected to continue after a standstill period ending on October 18, now has a new deadline of November 18. Malta's intervention highlighted three critical issues: B2B companies must obtain a license before entering the Italian market, operators are prohibited from managing multiple brands under a single license, and measures need to be improved to prevent underage gambling.
The upcoming changes in Italy's gambling landscape will also lead to a significant increase in license fees, from 200,000 euros to 7 million euros, posing a challenge for small operators. The new licensing system is expected to reshape the market and improve financial security. Existing operators will need to reapply under the new framework, which implements strict regulations limiting each operator to one app and one website per gambling activity.
The Italian Ministry of Economy and Finance estimates that at least 50 operators will apply for licenses, generating about 350 million euros in initial franchise fees and an additional 100 million euros annually over the next nine years. Additionally, approximately 30,000 online agents are expected to pay annual registration fees, contributing over 3 million euros each year.
