Multigioco licence revoked in Italy amid unpaid taxes and disputes

Multigioco SRL, a licensed operator in Italy's remote gambling sector, has officially lost its licence to operate after failing to meet critical financial obligations. The revocation comes after the company missed a deadline set by the Agenzia delle dogane e dei Monopoli (ADM) to settle outstanding taxes, reimburse customers, and pay fees associated with its concession. This development highlights both regulatory enforcement in Italy and the ongoing challenges within the country’s online gambling industry.

ADM issues ultimatum to Multigioco

On 1 August, Multigioco SRL received a formal document from the ADM granting the company a 20-day extension to resolve its financial responsibilities. The notice outlined unpaid taxes, penalties, and interest obligations, as well as overdue payments connected to concession fees and other administrative costs. The extended period was intended to provide the operator with a final opportunity to rectify its financial standing and maintain compliance with Italian gambling regulations.

The 20-day extension officially expired on 20 August, automatically revoking Multigioco’s concession for remote gambling operations. The public release of this document confirms the regulatory authority's decision, which underscores the importance of strict compliance with administrative and fiscal obligations within Italy's gaming market.

Details of non-compliance

The ADM report highlights several instances where the company failed to meet its contractual and regulatory responsibilities, noting: “Due to repeated breaches of its contractual obligations, (Multigioco) has profoundly undermined the relationship of trust existing with the Administration.” These breaches encompass the failure to reimburse players, non-payment of taxes, missed concession fees, and unpaid contributions to the Sport Rescue Fund—a mandatory component of Italy's gaming regulatory framework designed to protect consumers and support responsible gambling initiatives.

The regulator also highlighted that these repeated failures have had a substantial impact on the company’s standing, indicating that the breaches are not isolated incidents but part of a pattern of non-compliance. This sustained lack of adherence to regulatory obligations has now prompted the ADM to take decisive action, with the potential for further criminal proceedings as a result of the unpaid taxes and penalties.

Player complaints and financial disputes

Beyond regulatory issues, there has been a growing number of complaints from customers regarding unpaid balances. Players and account holders reported difficulties accessing their funds, further undermining confidence in the operator’s ability to maintain secure and reliable services. The accumulation of unresolved complaints was explicitly noted in the ADM document, reflecting the importance regulators place on consumer protection alongside fiscal compliance.

The combination of financial and operational failures has cast a spotlight on the company's management practices, particularly in handling customer accounts and ensuring transparency in transactions.

Ownership and historical context

Multigioco SRL was previously owned by Elys BMG Group, a company that has largely shifted its focus to the United States market. In the U.S., Elys BMG Group operates a sportsbook at The Ugly Mug, a restaurant and bar located in Washington DC. This strategic pivot has raised questions about the company’s ability to maintain operational oversight in its Italian business, potentially contributing to the lapses in compliance.

In 2023, Elys Game Technology, an international technology provider, launched a new online gambling platform called Newgioco specifically for Multigioco SRL. The launch of this platform was accompanied by considerable publicity, with the company’s CEO, Angelo Merola, commenting: “We are rewriting the rules of the game, and we have unwavering confidence that our users will benefit from this cutting-edge update.” Despite these promises, the platform appears to have ceased operations, as servers for Newgioco are no longer active and customer access has been restricted.

Regulatory and legal implications

The revocation of Multigioco’s licence has multiple implications for both the company and the broader Italian gambling market. Firstly, it reinforces the ADM’s authority and its commitment to ensuring that operators comply with tax, fee, and reimbursement obligations. Secondly, the action demonstrates the potential consequences for companies that fail to maintain proper financial practices or adequately address consumer complaints.

Legal experts suggest that the situation could lead to further proceedings, including criminal charges related to tax evasion or fraudulent practices. Additionally, any unresolved customer claims may result in civil litigation, although the Italian regulatory framework provides mechanisms for players to recover funds through the Sport Rescue Fund and other administrative channels.

Market impact and industry response

The Italian online gambling market is one of Europe’s largest, and regulatory compliance is a critical factor for maintaining trust with both customers and industry stakeholders. Multigioco’s licence revocation serves as a cautionary example for other operators, emphasizing the importance of timely tax payments, transparent operations, and effective customer service.

Industry analysts note that the market continues to experience consolidation, with larger operators acquiring smaller platforms to strengthen their portfolios and ensure compliance with strict regulatory standards. The failure of Multigioco may open opportunities for competitors to attract its former customer base, particularly in regions where online gaming demand remains robust.

Lessons for operators

The Multigioco case underscores several key lessons for operators in regulated markets:

• Financial discipline is crucial: Delays or failures in tax payments and fees can have immediate regulatory consequences.
• Consumer trust is essential: Unpaid balances and unresolved complaints erode confidence and attract regulatory scrutiny.
• Regulatory communication must be prioritized: Engaging proactively with authorities and addressing compliance issues promptly can prevent severe penalties.
• Operational oversight matters: Companies expanding internationally must ensure that management and compliance structures remain robust across all markets.

These lessons resonate beyond Italy, serving as a reminder to operators in other jurisdictions about the interplay between legal obligations, customer protection, and sustainable business practices.

Future of Multigioco SRL

While the immediate impact is the cessation of Multigioco’s licensed operations in Italy, the long-term consequences remain uncertain. Potential scenarios include restructuring under new ownership, divestment of assets, or formal liquidation depending on the outcome of pending regulatory and criminal investigations.

The Italian authorities have demonstrated a willingness to pursue further actions, which may include pursuing unpaid taxes, concession fees, and penalties through legal channels. Multigioco’s management will need to respond strategically to mitigate reputational damage and address financial obligations to former customers.

Conclusion

The revocation of Multigioco SRL’s Italian licence represents a significant enforcement action by the ADM and highlights the critical importance of regulatory compliance in the online gambling industry. The case illustrates the financial, operational, and legal risks faced by operators who fail to meet obligations, and it provides a cautionary tale for other companies in the sector.

As the regulatory landscape in Italy continues to evolve, operators must remain vigilant, ensure robust financial management, and prioritize customer protection to maintain trust and operate sustainably. For Multigioco SRL, the immediate focus will likely be on addressing outstanding obligations, navigating potential legal proceedings, and exploring strategic options for its future operations.

FAQs

What led to Multigioco SRL losing its Italian licence?
Multigioco failed to pay taxes, reimburse customers, and meet other regulatory obligations, leading to licence revocation.

Who oversees gambling licences in Italy?
The Agenzia delle dogane e dei Monopoli (ADM) is responsible for regulating gambling licences and ensuring compliance.

What was the 20-day extension granted to Multigioco?
The ADM provided 20 days for the company to settle unpaid taxes, fees, and customer reimbursements.

Are criminal proceedings possible in this case?
Yes, repeated non-compliance with tax and regulatory obligations may trigger criminal investigations.

What is the Sport Rescue Fund?
It is a regulatory mechanism designed to protect players and ensure reimbursements in cases of operator failures.

What happened to the Newgioco platform?
The platform launched in 2023 but appears inactive now, with servers no longer functioning.

Who previously owned Multigioco SRL?
Elys BMG Group was the former owner, focusing more recently on U.S. operations.

What impact does this revocation have on players?
Players may face delays in receiving owed funds, though regulatory measures like the Sport Rescue Fund may provide recourse.

Can Multigioco SRL resume operations in Italy?
Operations can only resume if the company resolves financial and regulatory issues and obtains a new licence.

What lessons does this case provide to other operators?
It emphasizes the importance of financial discipline, regulatory compliance, and maintaining customer trust.