Italy has unveiled a revamped licensing framework for online gambling, completing the first phase of its gambling sector reorganisation in 2024. With a nine-year licensing period, the new regime introduces significant financial requirements and strict eligibility criteria for operators. Despite delays caused by European Union (EU) consultations, the licensing process is now on track, aiming to create a more regulated and revenue-generating gambling industry.

Final Approval and Licensing Framework

Formal EU Journal Documentation
The Italian government’s new licensing regime received official approval from the EU’s Official Journal, marking a significant step in reorganising its online gambling sector. The concessions will be valid for nine years, establishing a stable regulatory environment for operators.

Fee Structure and Operating Charges
A €7 million authorisation fee is mandatory for each online gambling licence, supplemented by a 3% operating fee. This dual-pronged fee system aims to generate substantial revenue for Italy’s Ministry of Finance.

Delayed but Comprehensive Approval
Although delayed due to the Malta Gambling Authority’s (MGA) concerns over B2B technicalities, the revised framework aligns with the European Commission’s (EC) requirements, ensuring a robust and compliant structure.

Licensing Timelines and Application Requirements

Submission Deadlines and Evaluation Period
Operators must submit applications by 30 May 2025, with the evaluation process projected to span nine months from the tender’s publication date.

Eligibility Criteria for Applicants
Applicants must demonstrate expertise in managing gaming platforms within the European Economic Area (EEA). Additional requirements include:

Legal or operational headquarters within the EEA.
A valid licence in the EEA.
Proven total revenues exceeding €3 million over the past two fiscal years.
Flexible Payment Options
The €7 million licence fee can be paid in two instalments: €4 million upon award and €3 million upon operational launch, which must occur within six months of receiving the concession.

Revenue Projections and Market Impact

Estimated Financial Contributions
The new licensing structure is anticipated to attract approximately 50 operators, generating €350 million in licensing fees and an additional €100 million annually from fixed concession fees.

Expanding Market Opportunities
The Italian gambling sector is poised for growth, with this licensing reform encouraging participation from both established operators and new entrants seeking to capitalise on Italy’s regulated market.

Guarantees and Anti-Corruption Measures

Provisional and Final Guarantees
Applicants must submit a provisional guarantee of €750,000, either as a deposit or a surety bond issued by authorised banks or intermediaries. Additionally, a final guarantee of €3.7 million for 2025, representing 10% of the tender’s total value, is required.

Additional Financial Obligations
Further guarantees include a €500,000 fixed quota and a variable component tied to operational performance. Operators must also pay a €560 fee to Italy’s National Anti-Corruption Authority (ANAC), reinforcing transparency and accountability.

Anti-Corruption Compliance
These measures align with Italy’s commitment to reducing corruption within the gambling sector while ensuring financial safeguards for its regulatory framework.

Conclusion: A Transformative Step for Italy’s Online Gambling Sector

Italy’s new online gambling licensing regime represents a transformative step toward creating a more regulated, transparent, and revenue-generating industry. By implementing stringent eligibility criteria, substantial financial commitments, and anti-corruption safeguards, the framework sets a high standard for operational excellence. With projected revenues exceeding €450 million from licensing and concession fees, this initiative not only enhances market integrity but also bolsters Italy’s fiscal position. As the licensing process unfolds, it will be pivotal for operators to meet compliance requirements and seize opportunities in one of Europe’s most promising gambling markets.