Italian Parliament’s nod sets wheels in motion for wide-ranging changes in gambling sector

A groundbreaking legislative move by the Italian parliament has laid the foundation for a comprehensive overhaul of the country’s gambling landscape. The long-anticipated restructuring entails a series of changes to taxation regulations and the implementation of enhanced player protection measures. A decree issued on August 7th has revealed the initiation of a strategic effort led by the Ministry of Economy and Finance, assembling a panel of legal and tax experts, with Mario Lollobrigida, head of gaming at the Italian regulatory body, the Agency of Customs and Monopolies (ADM), at the helm.

Under the outlined timeline, a preliminary draft of legislative decrees will be presented to a general committee overseen by treasury deputy minister Maurizio Leo before September 20th. The government envisions an 18 to 24-month timeframe for the development and finalization of executive decrees. This will be followed by additional efforts to establish a novel framework, including the release of official notices for new gambling concessions.

Roberto Alesse, Managing Director of ADM, expressed his views on the new legislation, emphasizing its potential to address a spectrum of issues affecting citizens and the gambling industry at large. He stressed the importance of a thorough evaluation of the operational facets of the gambling sector in order to bolster player protection measures. A pivotal element of the proposed changes is the transition to a state concession model for approving gambling venues, with the aim of simplifying the complex web of distance regulations affecting establishments across the nation.

Crucial revisions pertaining to player protection encompass the enforcement of lower betting and winning limits, mandatory continuous training for concession holders, dealers, and operators, reinforcement of self-exclusion mechanisms, and an outright ban on betting for underage sporting events. Notably, this marks the fourth endeavor to reform the Italian gambling market, with the three prior attempts having been thwarted by political challenges and public opposition.

Alesse also addressed the topic of regional regulations, revealing plans for collaboration with local authorities to identify and designate “sensitive” zones where gambling presence will be significantly curtailed to protect vulnerable groups.

According to the proposed regulations, gambling venues will be required to maintain a minimum distance of 200 to 500 meters from “sensitive” locations like schools and hospitals, with the specifics contingent upon local directives.

A significant stride toward consistency, the new legislation aims to establish uniform regulations, particularly concerning geographical proximity, across the entire nation. Alesse underscored the substantial contribution of the gambling sector, which contributes around €11 billion annually to government revenue and offers stable employment to approximately 150,000 individuals. This initiative aligns with the broader national reform strategy and builds upon the extension of concessions endorsed in the Stability Law, covering online gaming, gaming machines, betting, and bingo concessions, ensuring their continuity until December 31, 2024. Italy’s response to the recent ruling (n. C 517/20) by the Court of Justice of the European Union (CJEU) underscores the government’s commitment to revamping the system in response to mounting pressures. Despite the challenges posed by extended closures of gaming outlets in 2020 and 2021, the Italian market displayed resilience, maintaining its growth trajectory. Impressively, 2022 saw a remarkable 31 percent increase in gross gaming revenue, reaching €19.6 billion, accompanied by a commendable 28 percent rise in tax revenues, totaling €11.2 billion.