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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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UK Implements Online Slot Stake Limits and Gambling Levy

tatutory-levy-and-online-slot-stake-limits-to-be-introduced-to-tackle-gambling-harm-1The UK government has announced comprehensive measures to address gambling-related harm, introducing a statutory levy on gambling operators and online slot stake limits. These initiatives aim to bolster protections for vulnerable individuals while funding essential research, prevention, and treatment programs.

Mandatory Levy to Raise £100 Million

A new mandatory levy will require licensed gambling operators to contribute to a ringfenced fund dedicated to tackling gambling harm. Replacing the existing voluntary system, this statutory levy is expected to generate £100 million annually, with 50% of the funds allocated to NHS-led gambling treatment services across England, Scotland, and Wales. The remainder will support prevention campaigns and groundbreaking research initiatives.

Gambling Minister Baroness Twycross emphasized the importance of this measure, stating, “Gambling harm can ruin people’s finances, relationships, and ultimately lives. We are absolutely committed to implementing strengthened measures for those at risk, as well as providing effective support for those affected.”

Unlike the voluntary system, which saw some operators contributing as little as £1 annually, the mandatory levy ensures consistent and equitable funding. Contributions will vary depending on the type and risk level of gambling activities, with oversight provided by the Gambling Commission.

New Online Slot Stake Limits

To further safeguard vulnerable players, the government is introducing stake limits for online slots, a product often associated with prolonged play and significant losses. Adults aged 25 and over will face a £5 limit per spin, while younger players aged 18-24 will have a lower limit of £2 per spin.

This decision follows evidence from the Office for Health Improvement and Disparities, highlighting the susceptibility of younger adults to gambling-related harm. The measure aims to provide greater protection while encouraging responsible gambling practices.

Baroness Twycross reinforced the government’s focus on safeguarding younger demographics, noting, “We are also helping to protect those at risk, with a particular focus on young adults, by introducing stake limits for online slots.”

Funding Allocation and Long-Term Goals

The government’s consultation process, held between October 2023 and January 2024, guided the distribution of levy funds. The NHS will utilize half of the proceeds to develop a comprehensive treatment and support system, encompassing triage, recovery, and aftercare services.

An additional 30% of the funding will target prevention efforts, including public health campaigns and training for frontline workers. The remaining 20% will support research through UK Research and Innovation (UKRI), driving data-informed policies and regulations to combat gambling harms effectively.

Claire Murdoch, NHS National Director for Mental Health, praised the initiative, citing a 129% rise in service referrals over the past year. “This mandatory levy will help treat this growing problem,” she stated.

A New Era of Safer Gambling

The statutory levy and stake limits are part of broader efforts to modernize gambling regulations in an era of technological advancements. Other measures include financial risk checks and stricter marketing controls to create a safer gambling environment.

By combining mandatory funding with proactive safeguards, the UK government aims to balance enjoyment and responsibility, ensuring that players can gamble safely while receiving necessary protections and support.

Source:

“Statutory levy and online slot stake limits to be introduced to tackle gambling harm“ GOV.UK, November 27, 2024.

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Indonesia Freezes 7,500 Bank Accounts to Combat Online Gambling

380_000_gambling_platforms_shut_down_in_indonesias_latest_actionIndonesia is ramping up efforts to eradicate online gambling, with Bank Indonesia (BI) freezing 7,500 bank accounts linked to illegal gambling activities. Deputy Governor Juda Agung announced the measures during a press conference at the Ministry of Communication and Digital Affairs, emphasizing the central bank’s commitment to eliminating online gambling nationwide.

Fraud Detection and Account Freezing

Agung explained that the initiative is a collaborative effort involving payment service providers from both banking and non-banking sectors. These providers are required to implement advanced fraud detection systems to identify accounts involved in online gambling and other fraudulent activities.

“Payment service providers, both banks and non-banks, must have fraud detection systems (in place) to identify accounts used for online gambling transactions and other fraud,” Agung said. Once identified, these accounts are reported to BI, which traces and freezes them, rendering the account holder unable to withdraw funds or conduct further transactions.

The crackdown is ongoing, with Agung affirming, “We will continue to take action against bank accounts affiliated with online gambling until online gambling activities are eliminated in the country.”

Broader Crackdown Efforts

Minister of Communication and Digital Affairs Meutya Hafid highlighted additional efforts to curb online gambling, including the establishment of an online gambling eradication desk earlier this month. As of November 4, the desk has submitted 651 requests to freeze accounts connected to gambling activities. Hafid also noted that her department has successfully blocked over 104,819 gambling-related websites since its launch.

Since the new government under President Prabowo Subianto took office on October 20, around 380,000 gambling-related sites have been dismantled. Hafid emphasized the importance of collaboration with banks to narrow the operational scope of online gambling networks.

Addressing Student Involvement

In a related development, Higher Education Minister Satryo Soemantri Brodjonegoro revealed that approximately 960,000 students, spanning schools and universities, have engaged in online gambling. He announced plans to establish dedicated reporting channels within universities to help address this growing issue.

Brodjonegoro also instructed university leaders, including those under the Ministry of Religious Affairs, to actively prevent participation in online gambling among lecturers, students, and academic staff. Minister Nasaruddin Umar confirmed that rectors from institutions such as the State Islamic University and the State Institute for Islamic Studies have been involved in strategy discussions to tackle this problem.

A Nationwide Initiative

Indonesia, as the world’s largest Muslim-majority country, has taken a firm stance against online gambling. The recent measures, backed by Bank Indonesia and government ministries, underline a coordinated effort to eliminate gambling activities from the country. The crackdown reflects the urgency brought about by the newly elected government, which has prioritized the eradication of illegal gambling as part of its broader policy agenda.

Source:

“BI to freeze bank accounts linked to online gambling“, ANTARA, November 24, 2024.

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France’s Proposed Online Casino Legalization Sparks Controversy and Delays

Plans-to-legalise-online-casinos-in-France-met-with-opposition-Postpones-budget-amendment-on-iCasino-lawsThe French government’s initiative to legalize online casinos has encountered significant pushback from various stakeholders, causing officials to halt their proposed amendment to the 2025 budget. This amendment, originally submitted by Prime Minister Michel Barnier’s administration, aimed to bring France’s gambling laws in line with other European Union (EU) countries. However, the intense opposition from addiction experts and land-based casino representatives led Budget Minister Laurent Saint-Martin to announce a postponement on Sunday, signaling the need for further consultations to address concerns.

Economic and Health Arguments for Legalization

Proponents of online casino legalization argue that the current prohibition places France at odds with EU standards, as it remains one of only two EU countries, alongside Cyprus, to ban online casino gambling. Despite this, France already allows online betting and poker, with poker being categorized as a skill-based game and thus exempt from the ban on games of chance.

Advocates of the proposed legislation believe that regulating online casinos would enable the government to generate substantial tax revenue and better manage public health risks by overseeing the sector. Government estimates suggest that legalizing online casinos could yield up to €1 billion in taxes annually, with a projected gross gaming revenue (GGR) tax of 55.6%, aligning with the rate applied to online lottery games.

The illegal online casino market in France is reportedly thriving, with the government estimating annual revenues from unregulated operations reaching as much as €1.5 billion. By bringing these activities into a legal framework, officials argue, they could address health concerns more effectively. The government stated that regulated online casinos could “limit the impact of online games on the health of consumers” and reduce the appeal of unlicensed operators.

Strong Opposition from Addiction Specialists and Casino Industry

Despite these proposed benefits, the plan has faced substantial resistance from those concerned about public health and the livelihood of France’s physical casinos. Féderation Addiction, a coalition of addiction specialists, warned against the amendment, labeling it “irresponsible and contrary to public health priorities.” Citing statistics from 2019, the organization highlighted that 1.4 million people in France were already at risk of excessive gambling, with nearly 400,000 dealing with severe gambling addiction. They cautioned that legalizing online casinos could exacerbate these issues, with more individuals potentially developing problematic gambling behaviors.

France’s land-based casino industry also voiced strong concerns, citing potential economic damage. The president of Casinos de France, Grégory Rabuel, expressed alarm over the projected consequences for physical casino venues. In a statement, Rabuel noted that “opening up online casinos will lead to a fall in gross gaming revenue for land-based casinos of between 20% and 30%.” He also warned that up to 30% of establishments could face closure, threatening around 15,000 jobs. This sentiment was echoed by over 130 French mayors in an editorial published in Le Figaro, where they argued that legalizing online casinos would ultimately harm the industry rather than boost the state’s finances, describing the proposal as “opening a Pandora’s box.”

Postponement and Future Considerations

In response to these concerns, Minister Saint-Martin confirmed that the amendment to legalize online casinos would be removed from the 2025 budget proposal, stating, “We need to work among ourselves first.” He emphasized the government’s commitment to considering all parties involved, especially land-based casinos. This delay maintains the current regulatory framework established in 2010, which allows for sports betting, horseracing, and poker but excludes online casinos.

However, the government has not entirely abandoned the idea. Saint-Martin indicated that future discussions may revisit online casino legalization, with potential legislative measures addressing tax generation, protections for physical casinos, and public health safeguards. Casino representatives, for their part, remain cautious but are prepared to engage in constructive discussions. Rabuel expressed relief over the postponement and emphasized the importance of a collaborative approach: “We remain vigilant to ensure that any future legislative or regulatory changes take place within a framework of consultation and constructive dialogue.”

As the debate continues, the French government’s approach will likely focus on balancing economic incentives with the need to protect public health and safeguard the interests of the country’s established casino sector. The final decision, expected after thorough consultations, will determine whether France joins the majority of EU countries in permitting online casinos or continues to uphold one of the EU’s most restrictive gambling regulations.

Sources:

“Plans to legalise online casinos in France met with opposition“, rfi.fr, October 23, 2024.

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Massachusetts Online Lottery Launch Delayed to 2026 Due to Funding Issues

Massachusetts-online-lottery-launch-delayed-to-2026Massachusetts residents hoping to participate in the state’s online lottery will have to wait until April 2026 due to delays in receiving the necessary funding to develop the platform. Initially projected to launch by the end of 2025, the timeline has now been pushed back, state officials confirmed.

During a recent Greater Boston Chamber of Commerce meeting, State Treasurer Deborah Goldberg, Chair of the Massachusetts Lottery, revealed that the lottery’s online expansion has been slower than expected. This delay stems from the state not yet receiving the $2.5 million in government funding required to kickstart the project.

Lottery Director Mark Bracken explained that the 16-month timeline to implement the platform will not begin until the funds are allocated. “Unfortunately, we have not received funding yet to do anything with online lottery,” Bracken stated, noting that the money might not arrive until between November 2024 and January 2025.

Funding Delays Push Timeline

Massachusetts lawmakers passed legislation to legalize the online lottery in June 2024, with Governor Maura Healey signing it into law in July. However, the lack of immediate funding has hindered progress, meaning that the state lottery can’t move forward with hiring staff or engaging the necessary consultants to develop the platform.

Once the funding is secured, the Massachusetts Lottery will have 16 months to fully implement the online platform. This timeline pushes the expected launch to spring 2026, instead of the previously estimated fall 2025. Bracken reassured the public that the additional time would allow the lottery to launch a more refined and polished product. “We want this to be the best platform with the best offerings for our players,” he stated.

Financial Expectations Adjusted

The delays have also prompted a revision of the expected revenue generated from the online lottery. Initially, state officials anticipated the platform would bring in $100 million in revenue for the first fiscal year. However, that estimate has now been lowered to $70 million, with revenues expected to increase to $180 million by the second year and $230 million by the third.

The funds raised through the online lottery are earmarked to support early childhood education and care programs in Massachusetts. Despite the setback, the Massachusetts Lottery remains optimistic about the long-term success of the platform once it’s operational.

Gambling, Retail, and Government Impact

Bracken and Goldberg also addressed concerns that the launch of online sales could negatively impact traditional retail sales. However, Bracken dismissed these fears, explaining that, in states where online lottery platforms have been introduced, retail sales have often seen a boost. “In every state that had online lottery, their retail sales grew at a faster pace than states that didn’t have online lottery,” Bracken explained.

In addition, online players will be able to redeem bonuses in retail locations, which is expected to drive further foot traffic to brick-and-mortar lottery outlets. This approach aims to balance the growth of the online lottery with the continued success of traditional lottery retailers.

Preparing for Launch

Although the funding has yet to be finalized, the Massachusetts Lottery is already laying the groundwork for the platform. Officials have been in discussions with several platform providers and game vendors and have issued a Request for Proposals (RFP) to identify potential partners for developing the online system.

Once the platform is up and running, players can expect a full suite of digital lottery options, including traditional draw games and innovative e-instant games similar to online slots. Bracken hinted at the possibility of themed mini-games that put a new spin on traditional scratch tickets, providing a fresh experience for players while staying true to the lottery format.

The online platform will allow Massachusetts players to purchase tickets and play instant win games directly from their phones or computers, providing more convenience while also expanding the state’s gambling ecosystem.

Source:

When Massachusetts Expects to Launch Online Lottery, wbsm.com, October 21, 2024.

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