The Italian government has confirmed its decision to move forward with its revamped gambling legislation, despite objections from Malta. This development marks a significant milestone in Italy’s effort to consolidate and reform its gambling regulations, with the new law expected to reshape the sector and generate substantial tax revenue.

Italy Dismisses Malta’s Concerns

Malta’s objections centered on several key areas of the proposed legislation, including the licensing requirements for B2B operators, restrictions on managing “skins” or secondary brands under a single license, and enhanced safeguards to prevent underage gambling. Malta argued that the new rules could create unnecessary barriers for operators and urged Italy to account for existing European licenses.

However, the Italian government dismissed these concerns, emphasizing the law’s adherence to EU principles. It clarified that B2B companies will not require separate concessions, as the term “service provider” applies only to operators offering direct services to consumers. Furthermore, Italy defended its approach to technological neutrality, stating that the measures governing websites and apps are identical, ensuring fair treatment across platforms.

“The proposed Technical Rules are adherent to the principles and EU law,” the Italian government asserted, adding that the new regulations aim to enhance consumer protections and ensure fair competition in the Italian gambling market.

Key Features of the New Law

The new legislation in Italy introduces significant reforms designed to streamline the gambling industry and prioritize responsible gaming. Key aspects include:

• Licensing and Fees: Online gambling operators must pay a €7 million fee for a nine-year license. A concessionaire’s operating fee of 3% and a 0.2% levy on annual net revenues will also be implemented.
• Player Protections: Stricter safeguards for young players aged 18 to 24, including mandatory monetary and session limits during account registration. Self-exclusion options and time-limit warnings will also be required.
• Technological Neutrality: Equal treatment for websites and mobile apps, ensuring consistent regulatory standards across platforms.
• Data Hosting Compliance: Gambling platforms must host IT infrastructure within the European Economic Area (EEA) to comply with EU data protection standards.

The reforms are expected to bring substantial economic benefits, with the Ministry of Economy and Finance (MEF) projecting that at least 50 operators will apply for licenses, generating €350 million in initial revenue.

Implications for the Industry

The new law signals a shift in Italy’s approach to gambling regulation, prioritizing sustainability and consumer protection while streamlining processes for operators. A dedicated department within the Agency of Customs and Monopolies will oversee gambling activities, ensuring compliance and managing the tender process for licenses.

Prime Minister Giorgia Meloni has endorsed the reforms, which aim to combat gambling addiction, protect minors, and support social initiatives through increased tax revenue. The Italian gambling sector, which raised €11 billion in 2022, is poised for further growth under the new framework.

Industry Response

While Malta’s objections led to a brief delay during the European Commission’s mandatory review period, the Italian government has remained steadfast in its position. With the upcoming issuance of licenses, the focus now shifts to how these reforms will impact operators and consumers alike.

The streamlined licensing process, coupled with robust player protections, sets the stage for a more responsible and transparent gambling environment in Italy. Industry stakeholders will be closely monitoring the rollout of the new concessions and their long-term effects on the market.

Source:

“Italy to Go Ahead with New Gambling Law“, ICLG, November 21, 2024. 

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