EGBA Expresses Concern Over New Italian Decree Reorganising Online Gambling License Fees

December 19, 2023

The European Gaming and Betting Association (EGBA) has raised serious concerns regarding a proposed Italian decree on online gambling currently under discussion in the Council of Ministers. The decree introduces significant changes to the sector, particularly in terms of license fees, which EGBA fears may exacerbate the country’s existing online gambling black market problem.

The proposed decree reportedly includes an unprecedented €7 million license fee, making it the highest in the EU. EGBA contends that such a drastic increase is unwarranted, especially when compared to Italy’s previous licensing tenders. The suggested fee marks a staggering 35-fold increase from the 2018 license fee of €200,000 and triples the earlier unimplemented proposal of €2.5 million.

EGBA emphasizes that this substantial hike in license fees could have severe consequences, deterring new entrants to the market and potentially driving existing licensees, particularly smaller operators, out of business. The association predicts a significant reduction in the number of licensed operators from the current 91 to a mere 15-20, leading to an alarming growth in the country’s online gambling black market and posing risks to player protection.

Italy already hosts one of Europe’s largest online gambling black markets, valued at over €1 billion annually. EGBA warns that the proposed fee increase would worsen the situation, with grave implications for the protection of Italian players.

Anticipated revenues from the proposed licenses range between €105-140 million for the Italian state. EGBA suggests that reverting to the earlier unused tender proposal of €2.5 million, without limiting factors, could yield similar or higher tax revenue without significantly harming market competitiveness.

EGBA urgently calls upon the Council of Ministers to reconsider the proposed punitive increase in license fees, emphasizing that the primary goal of Italy’s gambling regulation should be player protection and fostering a fair and competitive market. The association is committed to collaborating with Italian authorities to develop a license fee framework that supports a well-regulated and sustainable online gambling market while ensuring a level playing field for all operators.

Moreover, EGBA proposes the revocation of the existing advertising ban, exploited by black market operators, to enable regulated advertising that protects minors and vulnerable groups while allowing licensed operators to market their regulated gambling services.

Maarten Haijer, Secretary General of EGBA, states, “The proposed increase in licensing fees is unparalleled and unheard of, it would make Italy the most expensive country in Europe to obtain an online gambling license. Together with the other restrictions in its gambling market, such as the local advertising ban, this proposed fee hike will make Italy a closed shop for new market entrants and lead to an exodus of existing licensees. This also raises concerns on compliance with EU law. We urge the Council of Ministers to reconsider the proposal, as it will make the country’s online gambling black market problem even worse, not better.”