Italy has announced a new online gambling licensing structure, marking the first phase of a comprehensive reform of the gambling industry. This nine-year licensing system has been approved by the Official Journal of the European Union, aimed at achieving regulatory modernization while generating substantial revenue for the Italian government.
New Italian Online Gambling Licensing System:
Under the new framework, operators must pay a licensing fee of 7 million euros, plus an operating fee of 3%. These measures are expected to generate 350 million euros in application fees, and an annual fixed franchise fee of 100 million euros. Applications must be submitted by May 30, 2025, and the review process is expected to take nine months.
To qualify, applicants must meet strict eligibility criteria. They must have a legal or operational headquarters within the European Economic Area (EEA), hold a valid gambling license, and demonstrate a revenue of at least 3 million euros for the past two fiscal years. Additionally, each operator can apply for up to five licenses, with payments divided into two installments: 4 million euros at the time of license grant and 3 million euros before operations begin, which must be completed within six months of obtaining the franchise.
The new licensing system also introduces strict financial guarantees to ensure compliance. Applicants must provide a temporary guarantee of 750,000 euros issued by an authorized bank or financial intermediary, which can be a deposit or bond. A final guarantee of 3.7 million euros, representing 10% of the total bid value, is also required.
In addition to these guarantees, operators must also pay a fee of 560 euros to the Italian National Anti-Corruption Authority (ANAC) and continue to pay variable remuneration based on their operational performance. These measures aim to maintain the integrity of the gambling industry while preventing financial misconduct.
Addressing Broader Industry Challenges in the Second Phase:
With the implementation of the licensing system, the Italian government plans to enter the second phase of gambling reform in 2025, which will focus on addressing long-standing issues in the physical gambling industry and revisiting the controversial "Dignity Decree."
The "Dignity Decree," implemented in 2019, prohibits all forms of gambling advertising and sponsorship, a policy criticized by the media, Serie A clubs, and industry stakeholders for its economic impact. Roberto Alesse, head of the Customs and Monopolies Agency (ADM), described the decree as "economically destructive" and believes that reforms must comply with European standards to balance regulatory oversight and economic growth.
The second phase will also seek to unify gambling regulations across Italian regions, aiming to combat illegal gambling and enhance consumer protection. Despite challenges such as a 6% decline in gambling tax revenue in 2023, totaling 11.62 billion euros, ADM views these efforts as an opportunity for Italy to become a leader in European gambling legislation.
SBCNews reported Alesse's statement: "In a free country, legal gambling cannot endure excessive prohibitions. We must adjust national standards to meet European requirements." This balanced approach aims to maintain the growth of the Italian gambling industry while protecting consumer rights and promoting fair competition.
