Italy Introduces Comprehensive Online Gambling Licensing Regime

Italy-launches-online-betting-and-gaming-licence-processItaly has officially launched a new licensing framework for online gambling, finalizing the first phase of its gambling sector reorganization in 2024. The new licensing structure, which was documented in the EU’s Official Journal, enables operators to obtain nine-year concessions at a significantly higher fee of €7 million per license. This initiative reflects Italy’s effort to modernize its gambling regulations and align with European standards.

This framework follows an extended standstill period due to objections raised by the Malta Gaming Authority (MGA) regarding B2B compliance. Despite these delays, the European Commission (EC) approved key changes sought by Italy’s Ministry of Finance (MEF) and Customs and Monopolies Agency (ADM), allowing the restructured system to move forward.

Licensing Requirements and Financial Provisions

Operators looking to apply must meet strict criteria, including maintaining a legal or operational headquarters within the European Economic Area (EEA), possessing valid licenses, and achieving at least €3 million in total revenues over the past two years. Each operator can apply for up to five licenses, with payments split into two installments: €4 million upon concession award and €3 million upon the launch of operations.

Additionally, operators must adhere to financial guarantees, starting with a €750,000 provisional deposit and a final guarantee of €3.7 million. Beyond these, a fixed annual operating fee of 3% applies. To support anti-corruption measures, applicants must pay a €560 fee to Italy’s National Anti-Corruption Authority (ANAC).

Applications for concessions are open until May 30, 2025, with the evaluation process expected to last nine months. Authorities predict approximately 50 operators will apply, generating an estimated €350 million in initial revenue and an additional €100 million annually through fixed concession fees.

Regulatory and Operational Enhancements

The ADM is planning the second phase of reforms in 2025, focusing on resolving conflicts in land-based gambling regulations and revising the controversial Dignity Decree, which banned gambling advertising and sponsorships in 2019. ADM Director General Roberto Alesse criticized the decree as “economically damaging” and anticipates reforms that balance consumer protection, economic growth, and regulatory oversight.

The second phase will also standardize gambling laws nationwide, addressing illegal gambling and ensuring better protections for consumers. The ADM views these reforms as an opportunity to position Italy as a leader in European gambling legislation.

Challenges Ahead

Despite the ambitious plans, Italy’s gambling reforms face challenges, including declining tax revenues, which fell 6% in 2023 to €11.62 billion. Projections indicate further declines in 2024, prompting the need for efficient implementation of the new framework.

The framework has also sparked concerns from smaller operators over the increased licensing fees and stricter requirements. These measures, combined with limitations on branding and platform flexibility, may lead to further consolidation within the market.

Furthermore, anomalies in online gambling behaviors, particularly in smaller municipalities, are under scrutiny. A recent study in Calliano revealed disproportionately high per capita gambling expenditures, highlighting the need for targeted municipal regulations to mitigate potential societal impacts.

A New Era for Italy’s Gambling Industry

With the approval of the licensing framework, Italy is setting the stage for a more structured and transparent online gambling market. As the ADM finalizes its response to the MGA’s concerns, the extended standstill period offers an opportunity to refine the system further.

As Roberto Alesse noted, “In a liberal state, legal gambling cannot endure excessive prohibitions. We must adapt national standards to those required by Europe.” By implementing balanced regulations, Italy aims to stimulate economic activity, enhance consumer protections, and address illegal gambling effectively.

Source:

Italy Launches New Licensing Framework for Online Gambling, lcb.org, December 19, 2024.

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Paraguay Moves to Open Gambling Market with New Bill

Paraguay-Chamber-of-Deputies-passes-bill-to-end-to-gambling-monopoly
In a pivotal step towards modernizing its gambling sector, the Paraguay Chamber of Deputies has approved a bill that marks the end of the country’s state-run gambling monopoly. The reform, passed on December 17, 2024, introduces sweeping changes aimed at liberalizing the market, allowing private operators to enter the industry for the first time.

Dismantling the Monopoly

Under the newly passed bill, Paraguay will finally dismantle its restrictive gambling monopoly, which had limited operations to public tenders only. This change opens the door to private companies, paving the way for more competition and variety within the country’s gambling market. The approved amendments to Law No. 1,016/1997 signal Paraguay’s shift towards a more modernized approach to gambling, one that aligns with global industry trends.

For years, the country’s gambling activities had been regulated under a public monopoly system. However, the newly passed reforms will allow private businesses to enter the market, fueling competition and economic diversification. These changes are expected to benefit both consumers and the overall economy, with the government anticipating an increase in tax revenue from the sector.

Strengthening Regulatory Framework

One of the central aspects of the reform is the restructuring of the National Commission of Gambling (Conajzar). The bill places Conajzar under the supervision of the National Tax Revenue Directorate (DNIT), a move that’s expected to improve the regulatory oversight and revenue collection processes within the gambling sector. By streamlining the commission’s operations under DNIT, the government aims to bolster institutional efficiency and ensure better compliance with the new regulations.

The newly restructured Conajzar will have expanded responsibilities, with its general director overseeing all gambling-related activities, including regulation, coordination, and enforcement across the country.

A Shift in Paraguay’s Economic Landscape

The bill’s approval is part of a broader effort to modernize Paraguay’s economic policies in response to changing global trends. The country has witnessed considerable social and economic shifts in recent years, with technological advancements and evolving market conditions influencing the gambling industry. By opening the gambling sector to private operators, the government hopes to foster economic growth, attract foreign investment, and improve the competitive landscape.

The new law aims to optimizeParaguay’s gambling industry, ensuring that it can keep pace with technological changes and meet the growing demand for a more diverse range of gambling products and services.

Lawmakers React to the Bill

The reform has not been without controversy. While many lawmakers expressed support for the bill, there were some dissenting opinions regarding certain changes, particularly the amendments to Article 20. Deputy Adrián Vaesken (PLRA-Central) and Deputy Rocío Vallejo (PPQ-Capital) voiced their opposition to the changes, suggesting that some parts of the bill needed further revision. However, Deputy Yamil Esgaib (ANR-Capital) strongly supported the reform, stressing that it would help increase the commission’s capacity to enforce regulations and oversee gambling activities effectively.

Following the debate, the bill was approved by the Chamber of Deputies and is now on its way to the executive branch for final approval. If enacted, the bill will fundamentally reshape Paraguay’s gambling sector and introduce significant changes to its economic structure.

What Lies Ahead for Paraguay’s Gambling Industry

This reform is expected to be a turning point for Paraguay’s gambling industry. With the end of the monopoly and the introduction of private operators, the country is poised to see increased competition, better services for players, and higher tax revenues. The restructured regulatory framework, under the oversight of DNIT, ensures that the market will be better managed and regulated moving forward.

The introduction of private operators in Paraguay’s gambling sector is part of a broader strategy to stimulate economic development and align with global trends in the gaming industry. With these changes, Paraguay is positioning itself as an increasingly competitive and dynamic player in the international gambling market.

Source:

Sancionan nuevo régimen jurídico para la explotación de los juegos de azar, Cámara de Diputados de Paraguay, December 17, 2024.

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LeoVegas Joins EGBA to Advance Safer Gambling and Industry Standards

leovegas_joins_egba_to_improve_industry_standards_in_europe The European Gaming and Betting Association (EGBA) has officially welcomed LeoVegas Group as its newest member. This collaboration aims to advance safer gambling practices, promote responsible advertising, and ensure compliance with EU regulations, including anti-money laundering (AML) measures.

Enhancing Safer Gambling Across Europe

LeoVegas, a leader in the online gambling industry, will participate in EGBA’s working groups, contributing its expertise to initiatives that prioritize consumer protection and regulatory compliance. Carl Brincat, LeoVegas’ Director of Policy & Regulatory Affairs, commented:
“As a company committed to safer gambling and technological innovation, we look forward to contributing our expertise to EGBA’s important work. This partnership aligns perfectly with our vision of leading the way towards a sustainable and well-regulated gambling industry in Europe.”

This partnership also reinforces EGBA’s representation in the Nordic region, where LeoVegas has a strong market presence. By joining forces with EGBA, LeoVegas strengthens its position as a proponent of well-regulated online gambling markets that prioritize consumer safety and entertainment.

Expanding Global Operations

In 2024, LeoVegas made significant strides in its global expansion efforts. Notably, the company acquired Tipico’s US sportsbook platform, enabling it to control proprietary sportsbook technology and operate in international markets. Under the umbrella of its parent company, MGM Resorts International, this move reflects LeoVegas’ ambition to expand its influence beyond Europe.

Additionally, LeoVegas extended its collaboration with Playtech earlier this year, integrating platform technology into its Dutch operations and other European markets. These efforts underscore LeoVegas’ commitment to maintaining high standards of operational excellence and regulatory compliance across its growing portfolio.

EGBA Welcomes LeoVegas

Maarten Haijer, Secretary General of EGBA, expressed enthusiasm for the new partnership:
“We’re delighted to welcome LeoVegas Group to EGBA’s membership and pleased to close the year with another new member. As a leader in our industry and with strong Nordic market presence, LeoVegas Group brings valuable expertise to our association and will enhance our collective efforts to promote a well-regulated and sustainable gambling sector in Europe. We look forward to working closely with our new colleagues on our shared commitment to high industry standards.”

LeoVegas’ inclusion in EGBA not only boosts the association’s influence in the Nordics but also exemplifies its mission to create a safer, more sustainable online gambling ecosystem throughout Europe.

Source:

European Gaming and Betting Association (EGBA)’s Post‘, LinkedIn, December 16, 2024.

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Polymarket Faces Regulatory Block in France Over Illegal Gambling Concerns

French-regulator-blocks-crypto-predictions-operator-PolymarketFrance’s gambling regulator, l’Autorité Nationale des Jeux (ANJ), has imposed a geo-block on Polymarket.com, a crypto-based prediction market platform, over allegations of illegal gambling. The platform, operated by Web3 developer Adventure One QSS and licensed in Panama, has been restricted from serving users in France since November 21, 2024.

Illegal Games of Chance in Focus

ANJ monitored Polymarket throughout November, identifying concerns over its offerings, including online games of chance such as slots, which remain prohibited under French law. These activities prompted ANJ to contact Adventure One QSS, leading to the implementation of geoblocking measures to restrict access for French users.

French residents attempting to access Polymarket now encounter a pop-up message explaining the restriction. Despite this, reports indicate that users have managed to bypass the block by using virtual private networks (VPNs), raising concerns about the effectiveness of such measures.

In addition to gambling violations, Polymarket’s prediction markets—where users trade shares on event outcomes—have drawn scrutiny for potential insider trading. A particularly notable case involved a French trader, known as “Theo,” who allegedly placed bets between $28 million and $40 million on Donald Trump winning the 2024 U.S. presidential election. The volume of these bets sparked fears of market manipulation and heightened regulatory focus on the platform.

Broader Issues with Polymarket

Polymarket has faced similar legal challenges outside France. In 2022, the platform was fined $1.4 million by the U.S. Commodity Futures Trading Commission (CFTC) for operating without proper registration. Trading was temporarily halted following the penalty.

As of now, the ANJ has added Polymarket to its growing blacklist of over 944 URLs that violate French gambling laws. The regulator warns users about the risks of playing on unlicensed platforms, including potential identity theft, fraud, and non-payment of winnings.

“In general, the ANJ would like to warn people who play on illegal sites because they are exposing themselves to particularly serious risks,” the regulator said in a statement. It also advises players to consult its official list of licensed operators to ensure they are gambling legally.

Future of Online Slots in France

The Polymarket case arises at a time when France is reevaluating its stance on online gambling. In October 2024, the French government proposed an amendment to its 2025 budget, aiming to legalize online casino games, including slots. This move, supported by Budget Minister Laurent Saint-Martin, is set to undergo a six-month consultation in 2025.

While new legislation may take years to materialize, the consultation could pave the way for regulated online slots to launch by 2026. For now, ANJ remains firm in its enforcement of existing gambling laws, as demonstrated by its actions against Polymarket.

Challenges for Crypto-Based Platforms

Polymarket’s case highlights the difficulties crypto-based prediction platforms face in navigating regulatory landscapes. These platforms operate at the intersection of gambling, blockchain, and financial markets, often attracting scrutiny from multiple jurisdictions.

As Polymarket works to address compliance concerns in France, the broader question of how regulators manage crypto prediction markets remains unresolved. The platform’s ongoing engagement with stakeholders and adjustments to its offerings may shape its ability to operate within legal frameworks moving forward.

Source:

French regulator blocks crypto operator Polymarket“, igamingbusiness.com, December 2, 2024.

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World Health Organization Says Normalization of Gambling a Detriment to Global Wellness

The World Health Organization (WHO) is calling for an overhaul of the global gaming industry on concerns that the normalization of sports betting and other casino games is a detriment to public health.

World Health Organization WHO gambling harm
The World Health Organization headquarters in Geneva, Switzerland. The intergovernmental health agency believes gambling harms are escalating around the globe. (Image: Getty)

WHO, the specialized agency of the United Nations tasked with improving public health around the world, this week published its latest fact sheet on gambling. The report suggests that gambling problems are rising and causing more harm than ever before.

WHO estimates that 1.2% of the world’s adult population has a gambling disorder. For every person afflicted, an average of six others (usually nongamblers) are affected. The number is higher amid kinship cultures like Indigenous people.

The international health agency says people with gambling problems are 15 times likelier to die by suicide than the general population. Gaming disorders also lead to food insecurity, housing problems, and difficulties paying for and receiving healthcare.

Mounting Challenges 

WHO researchers say the proliferation of sports betting, specifically in the United States, has mainstreamed gambling and introduced tens of millions of new consumers to the industry. The internet has also made gambling accessible almost anywhere, anytime, even in places where gambling and/or online gambling is prohibited.

The organization says responsible gaming standards have largely failed.

There is often little transparency about the way many gambling products function. Electronic gaming machines can mislead users with design features that encourage extended use. Alongside strong regulation of gambling products and their availability, clear warning messages about harms associated with use are likely to be more effective than messages suggestions to simply stop when gambling is no longer fun, for instance,” the fact sheet read. 

WHO took specific issue with the rise of online gambling.

“There is no global agreement for the regulation of online gambling. Unlicensed providers regularly offer unregulated gambling products, and there is an urgent need for the regulation of online gambling,” the organization continued.

WHO is additionally calling on lawmakers to ban all gambling-related advertising, promotion, and sponsorship. The agency urges universal loss limits, maximum bets, and required breaks during gambling sessions.  

WHO says a deep probe into the gaming industry’s political activities and influence on gambling harm research is warranted.

The American Gaming Association (AGA), which represents the commercial and tribal gaming industries in the US, said in October following an international study that found the continued expansion of gambling poses a significant threat to public health that the sector has made investments to advance responsible gaming, expand consumer resources, and promote “safer gambling.” AGA Strategic Communications Senior Vice President Joe Maloney said the lobbying group “firmly supports ongoing discussions and the adoption of best practices.”

Reducing Stigmas

WHO concluded that problem gambling, unlike some other addictions and mental health issues, has a very low rate of treatment uptake. The group estimates that fewer than 1% of those with a gambling disorder seek formal help.

Stigma and shame often prevent people from seeking help. The preferred regulatory approach of the gambling industry — so-called responsible gambling — adds to this burden by effectively blaming those who experience harm,” WHO detailed.

WHO concluded by revealing its plans to coordinate a group of global experts to address the public health challenges caused by gambling. The focus will be to reduce stigma and shame related to gambling disorders, work to end advertising and promotion of gambling, and develop ways to lessen problem gambling rates, with an emphasis on low- and middle-income countries. 

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