Italy's new online gambling licensing framework moves forward with EC review

Italy is set to finalize its revamped framework for online gambling concessions as it undergoes the phase of legislative review. The European Commission (EC) has initiated an open consultation on the proposed technical rules of Italy's new gambling licensing regime, the final legislative procedure.

As part of its obligations as a European Union member state, Italy must notify the EC of any legislative changes affecting its domestic market and competition regulations. The EC's consultation is designed to collect feedback on how the new licensing rules might influence Italy’s IT sector and broader gambling industry.

The new framework is currently in a mandatory three-month “standstill” period, which allows EU member states and other stakeholders to review and comment on the proposed changes. This period will conclude on October 18, 2024.

Afterward, the Italian government plans to initiate the tender process for new remote gambling licenses, anticipated to start in late December 2024 or early January 2025.

Assuming no major objections or required adjustments emerge by the end of the standstill period, the Agenzia delle Dogane e dei Monopoli (ADM), Italy’s Agency of Customs and Monopolies, will move forward with implementing the new licensing regime.

Under the new regulations, the Ministry of the Economy and Finance (MEF) has established a fee of €7 million ($7.7 million) for each online gambling license, valid for a nine-year term. The technical rules outline the performance standards, functions, and technical requirements that operators must meet to manage and provide remote gambling services.

Licensees will be required to ensure secure interactions with Sogei, Italy’s state IT service provider. Additionally, all gambling platforms must host their IT infrastructure, including cloud-based solutions, within the European Economic Area (EEA) to adhere to EU data protection standards.

The new rules also introduce stringent measures aimed at preventing gambling addiction. These include mandatory self-exclusion tools, self-limitation options, and features that allow users to block their access to gambling services.

The regulations prohibit "affiliated online websites" or “skins” and permit separate applications for various game types such as betting, casino games, poker, and bingo. 

This development signifies the conclusion of the first phase of the Gambling Reorganisation Decree, representing the first regulatory assessment of Italian gambling since online gambling was legalized in 2011.

The Reorganisation Decree will continue with further reforms aimed at updating land-based gambling laws and protections across Italy’s 20 autonomous regions and 100 municipalities.