Italy: Sports Betting Regulation
Sports betting in Italy is popular and growing, especially in its online version.
Some facts and figures:
During this year, the online gambling industry in Italy is expected to bring in a revenue of €2.89 billion. This reflects a robust growth trend in the sector.
Also, according to Statista, the online gambling industry in Italy is expected also to have an annual growth rate of 5.52% in the next five years, with a market value of €3.78 billion. This growth includes a projected revenue of €1.54 billion for the online casino segment alone in 2024.
Additionally, the number of users is expected to increase to 4.3 million by 2029, with user penetration expected to be 6% in 2024.
These statistics highlight a growing engagement with online gambling platforms amongst Italian punters.
According to analysts, several factors are contributing to the rapid expansion of Italy’s online gambling market.
One of the primary drivers is the convenience and accessibility offered by online platforms. Italians are increasingly opting for online gambling due to the ability to place bets or play casino games from the comfort of their homes or on mobile devices. This change in consumer behaviour has been supported by a wide range of betting options, catering for a variety of personal preferences.
Another driver is a noticeable trend within the Italian market of the growing popularity of sports betting, particularly football. Italy’s deep-rooted passion for this sport has led to a high demand for sports betting opportunities.
In fact, online platforms have capitalised on this trend by offering an extensive array of sports betting options, including live betting and virtual sports.
The appeal of traditional casino games, such as blackjack, roulette, and slot machines, has also contributed to the market’s growth. The availability of live dealer games, which allow players to interact with real dealers via video streams, has further enriched the online casino experience.
Furthermore, the Italian market benefits from a well-regulated environment, which has played an important role in its growth.
The country has implemented stringent licensing requirements and regulations designed to ensure the integrity and fairness of online gambling operations. This regulatory framework has fostered a sense of trust amongst consumers and attracted reputable international gambling operators, such as ‘bet365’ and ‘bwin’.
In addition to this market growth, Italy is moving forward with a revised licensing framework for online gambling.
This new framework is under review by the European Commission (EC), in line with the European Union (EU) legislative procedures. The review phase includes a three-month “standstill” period, ending on 18 October 2024, during which the other 26 EU Member States and other stakeholders can provide comments and observations on the proposed Regulations.
The Italian government plans to initiate the tender process for new remote gambling licences when the standstill period ends, with a planned commencement date in late December 2024 or early January 2025.
The new Regulations, when approved, will introduce a licensing fee of €7 million for each online gambling licence, which will be valid for nine years. The technical rules will outline performance standards and technical requirements that operators will need to meet to provide remote gambling services.
The Regulations will also emphasise consumer protection, introducing measures, such as mandatory self-exclusion tools and options for users to limit their gambling activities. It may be mentioned in this connection, that there has been much discussion in Italy about bored young footballers spending hours betting online!
Also, most kinds of gambling advertisements, including online advertising, are prohibited, to reduce gambling addiction and protect consumers.
Furthermore, all gambling platforms will be required to host their IT infrastructure, including cloud-based solutions, within the European Economic Area (EEA) to comply with EU data protection standards. The new Regulations will prohibit affiliated websites, also known as “skins,” and will allow separate applications for different types of gambling, including betting, casino games, poker, and bingo.
This Regulatory update represents the culmination of the first phase of the Gambling Reorganisation Decree, which marks the first comprehensive review of Italian Gambling Regulations since online gambling was legalised in 2011.
Future phases of the Decree will focus on updating Regulations for land-based gambling operations throughout Italy’s regions and municipalities.
The Legal Regulation of gambling in Italy, including sports betting, is predicated on two pillars: balancing revenue generation with public welfare. The main regulatory body which oversees licensing and enforcement is Agenzia delle Dogane e dei Monopoli (Customs and Monopolies Agency), known by its acronym ‘ADM’.
By Sara Botti
The Author may be contacted by e-mail at ‘botti@valloni.ch’