Gambling has been part of the Italian culture since Roman times. In 2006 online gambling has started to be regulated but, being a state monopoly the change has been slow and it took until 2012 to see gambling fully legitimized only for those with an AAMS license, the local enforcer.

With an estimated spend in the leisure of €500 per capita, Italy became one of the largest gambling markets in the eurozone, and one with fairly liberal regulations compared to its counterparts. However, it still holds the title of being one of the toughest jurisdictions to access.

Gaming Figures

The AAMS has been very discrete releasing figures, with many figures found being obtained from different sources’ independent studies and estimates. As a whole, the Italian industry has experienced significant growth generating a record turnover of €102 billion in 2017 to 110,54 Billion by the end of 2019.

When it comes to participation, despite being the largest gambling market in Europe, only 30% of all Italians participated in a form of gambling, with nearly 19% of all gamblers preferring live gambling venues and activities over online, due fear of problem gambling (more on that later). Half of online gamblers prefer joining a casino via NonAAMS, which is the best source of casinos and bookmakers without an ADM license.

Gambling preferences showed a 47,26% sports betting majority over casino and slots, which are still close thanks to a 44,14% preference. Bingo was barely represented with 2,11%.participation. Is worth to note that only 22% of sports bettors relied on online platforms while the rest stuck with physical betting shops.

When it comes to prefered operators regarding online sports betting the major shareholder is Bet365 with a leading 13,6%, Snai (local operator) 13,4% and Planetwin365 holding 12% of it.

Interestingly, in retail Bet365 holds a small 5.7% while Snai takes the lead with 15,4% with eurobet13.9% and Planetwin365 10,6%

Casinos and slots are led by PokerStars owners The Stars Group. holding 10,02% followed by major Italian market holders Lottomatica 8,02% and Sisal holding 7,74%.

Perception of slot machines shared the same distrust as many other countries with 83,4% considering them extremely addictive.

Regarding problem gambling, figures make Italy can be considered alarming as 1,5 million are considered problem gamblers with at least 400,000 of them in the severe problem gambler category.

iGaming Legislation

In 2006 after approval of the AAMS, online gaming was legitimized, but restricted to sports betting, it wasn't until 2011 that other options such as casino, and poker could be included in the list of services provided.

Before the approval, gaming was in a very grey zone as laws were not updated and clear enough to regulate the market, allowing offshore operators to thrive. To restrain their participation, the AAMS blocked every IP outside Italy, creating a conflict with the European Union as it contradicted the principle of no -interference regarding business with the community.

The later was the stepping stone to make the AAMS consider opening its market, but only to licensed operators, and in a very limited number. Regarding offshore operators in the conflict, the AAMSS became quite proficient blacklisting (+7000 listed) and prosecuting them, persisting the current conflict with the Union members.

Even with all those measures, Italians can still reach offshore gambling sites using a VPN, with no punishment for the players, but everything to lose for the operator.

Restrictive Enforcement

One point in consideration is how restrictive the market is not only to access but even to operate in it.

Advertisement ban

In 2018, an absolute ban over gambling advertisement was imposed. Betting shops can only have their advert published in the building. Sponsorships were also limited to prevent any gambling enticing over the youth because of the strict association surrounding sports and betting.

Online gambling is also bound. Not a single operator is allowed to promote itself through search engines, meaning that only customers can access them by typing directly on their site.

Heavy taxation

The tax regime is another conflict point for operators. From the start, many operators pay a 20% levy on gross revenue, which later scaled up to 22%. When it comes to gambling forms each has additional taxation. Player winnings are still also taxed with a maximum cap of 20% of the earnings.

After Covid-19 appeared and sector figures plumped, a new tax 0,5% over turnovers was imposed. Operators didn't wait and claimed that the tax was effective as an additional 20% on gambling taxes, imposing greater pressure over them until 2021.

Expectations

Italy is a very polarized country where its laws and regulations change according to the leading Party. A coalition between the anti-establishment Five Star Movement and the centre-left Democratic have influence regulations to reduce the size of the gaming market, with special pressure over the number of slots and video lottery, where they try to reduce them at least a third of its actual number

After COVID hit the sector, the suspension of gambling retail has done little to move customers to online gaming. Instead, they have been seeking illegal operators. With the Coalition firm in its position to not allow the sector to reopen, (even when other sectors re-taking their normal activities) conflict between licensed operators and the left-wing became heated.

However, the ADM and the government are trying to recover the sector (and state coffers) and are making them reconsider allowing operators to regain their sponsorship on sports and even advertisement of services. If the measure will be temporary or a long-term one, is still in debate.

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