The Italian regulator has published its much-anticipated tender for new online gambling licenses following approval from the European Union (EU). This development is expected to reshape Italy's gambling landscape with a modernized regime offering nine-year licenses. Operators now have until May 30, 2025, to submit applications, and licenses will be awarded within nine months of the tender's publication. However, the industry has expressed concerns over the timing and implementation of the new framework. Here’s an in-depth analysis of the new licensing regime, its requirements, and the challenges facing operators.

Overview of Italy’s Online Gambling Licensing Regime

The new regime introduces nine-year licenses, costing €7 million, with detailed eligibility requirements for operators.

License Structure: Each license covers up to five concessions and is valid for nine years.
Fee Breakdown: Operators must pay €7 million per license in two instalments—€4 million upon award and €3 million before launching operations within six months of approval.
Operational Charges: A 3% operating fee will be applied, further increasing the cost of compliance.
The updated framework aims to ensure that only experienced and financially robust operators enter the Italian online gambling market.

Eligibility Criteria and Financial Guarantees

Operators must meet strict financial and operational requirements to secure a license.

Proven Expertise: Applicants must demonstrate a track record of operating gaming platforms in the European Economic Area (EEA).
Revenue Thresholds: They must also show revenue exceeding €3 million in each of the past two fiscal years.
Legal Presence: A legal or operational headquarters within the EEA is mandatory.
Financial Guarantees:
Provisional Guarantee: A €750,000 surety bond through an authorised financial institution is required during the application phase.
Final Guarantee: Upon approval, operators must provide a €3.7 million guarantee for 2025, with additional variable guarantees based on performance.
Operators will also be required to pay a €560 fee to the anti-corruption body, ANAC, to ensure compliance with transparency regulations.

EU Approval and Regulatory Delays

The European Commission’s (EC) green light came after resolving technical concerns raised by the Malta Gambling Authority (MGA).

Standstill Period: The EC’s approval was delayed due to MGA’s concerns about B2B technicalities, which extended the standstill period.
Publication: The tender is now live on the European Gazette and the institutional website of the Italian regulator, ADM.
While the EC’s approval clears a major hurdle, delays have left the industry racing against the clock to prepare for the May 2025 deadline.

Industry Concerns and Timing Issues

The new regime has raised questions about the licensing process and its impact on operators.

Technical Extensions: The industry seeks clarity on the extension of the current licensing regime and the fate of companies failing to secure new licenses.
Response Delays: Operators are concerned about whether the ADM will address questions promptly, given the tight timelines.
Holiday Disruptions: The tender's release close to the holiday season has further complicated preparations for potential applicants.
The ADM anticipates around 50 applications, expecting to generate €350 million in licensing fees and €100 million annually in concession fees.

Future Reforms and Broader Implications

The new licensing process is part of a broader plan to reform Italy’s gambling sector, including land-based operations and advertising regulations.

Land-Based Reforms: Progress on federal regulations for land-based gambling has been slower, with ongoing negotiations between the ADM and regional governments. The regulator aims to standardize regulations by 2025.
Gambling Advertisement Ban: ADM Director Roberto Alesse has pledged to review the controversial 2018 ban on gambling advertisements, calling it a "hypocritical regulation" unsuitable for a liberal state.
These reforms signal a shift toward a more liberalized and competitive gambling environment in Italy.