Italy launches strict new gambling licence era

Italy has formally launched a renewed regulatory framework for online gambling, marking one of the most significant structural transitions the market has seen in more than a decade. The activation of the new licensing regime represents a decisive moment for a sector that has become one of Europe’s largest and most strategically important online gambling markets. With updated compliance duties, strengthened player protection rules, and a consolidation of operational permissions, the framework aims to modernize the industry while increasing regulatory clarity and accountability.

The transition not only reshapes how operators conduct business in Italy but also signals the government’s intent to build a more unified, transparent, and enforceable system over the coming years. The landscape now begins a new phase defined by stricter oversight, fewer licensees, and a reconfiguration of how digital gambling services will reach consumers.

Activation of the new licensing system

The regulatory authority responsible for gambling in Italy, the Customs and Monopolies Agency (ADM), activated 52 new online gambling licences at 7:00am on Thursday. The activation followed a brief delay from the originally anticipated midnight launch, with the regulator citing minor technical refinements prior to final deployment. Despite the short postponement, ADM referred to the updated transition process as a “smooth and decisive reset”, signaling confidence in the new structure and the operational stability of the roll-out.

The activation has immediate and far-reaching implications for operators, suppliers, and partners active within the ecosystem. Hundreds of previously operating websites, particularly those functioning as “skins”, were required to shut down overnight. Under the new framework, the use of skins is no longer permitted, and each operator is restricted to one domain name per licence. This change is intended to simplify oversight and create clearer accountability for each licensed digital gambling service.

While 52 licences were issued, only 46 operators are currently live in the market. Some entities hold more than one licence for internal structuring reasons, while others have not yet activated their permissions. The consolidation is widely viewed as a structural reduction in the number of brands present in Italy’s regulated environment.

The financial impact of licence issuance

Each new licence required a €7 million payment, resulting in €364 million in direct revenue for the Italian state. The cost-per-licence represents one of the highest price points for online gambling licences within the European Union, signalling Italy’s intent to regulate a mature market through high financial entry thresholds. Such costs may discourage smaller or emerging companies from attempting to enter the market but may also strengthen the overall integrity and resource capability of the remaining operators.

Notably, several well-known multinational gambling brands opted not to participate in the new licensing round. Among them, Betway and Unibet declined to apply for a renewed licence. Their decisions not to proceed create an environment with fewer international competitors and potentially more space for locally embedded or regionally focused operators to strengthen their market position.

Strengthened compliance obligations under the new framework

The updated licensing structure is paired with a comprehensive set of operational and compliance duties intended to bolster consumer protection, prevent illicit activity, and align online gambling operations more closely with Italy’s broader digital regulatory environment.

Player identity verification and secure registration

A key component of the renewal is the mandatory use of Italy’s SPID digital identity system or the electronic identity card (CIE) for player registration. These tools form part of the government’s strategy to ensure robust identity verification and to reduce the potential for fraudulent account creation or impersonation. The SPID and CIE systems already form the backbone of digital public services in Italy, and their incorporation into gambling registration processes reinforces the integration of the online gambling sector into national digital governance structures.

Enhanced player protection measures

Existing protections, including mandatory spending limits and self-exclusion tools, remain core requirements. Operators are obligated to make these tools easily accessible and clearly visible within their platforms. Italy has historically maintained one of the more restrictive consumer protection regimes in the European gambling landscape, and the updated framework continues this approach by emphasizing harm-minimization duties that operators must implement as a condition of maintaining their licences.

Compliance, reporting, and auditing

The regulatory framework also includes strengthened reporting requirements, ongoing audits, and heightened obligations relating to anti-money-laundering (AML) standards. Licensees must demonstrate that their digital platforms maintain secure data environments, transparent financial movement records, and responsive mechanisms for compliance follow-up. These obligations are intended to reduce risks associated with financial misconduct and ensure clearer oversight of gambling service delivery.

Economic performance of Italy’s online gambling sector

Italy’s online gambling industry remains one of the largest within the European Union. The market generated approximately €5 billion in wagers, positioning Italy as the second-largest digital gambling market in Europe after the United Kingdom. Of this activity, operators generated €3.8 billion in gross gaming revenue, and €1.1 billion was contributed to the Italian government through taxes.

The scale of revenue demonstrates both the maturity of the market and the importance of the sector within Italy’s digital economy. The introduction of higher compliance obligations and streamlined licensing processes appears designed to support long-term sustainability rather than rapid expansion. By reducing the number of active operators and tightening oversight, the government aims to promote stability and reduce the likelihood of regulatory disputes or unlicensed market intrusions.

Future reforms anticipated in 2026

The updated online gambling licensing structure is only the first stage of a broader, multi-year reform plan. Italy’s government has indicated that a comprehensive review of land-based gambling operations will be introduced in 2026. These reforms have been anticipated for several years but have faced delays.

Harmonization of land-based gambling sectors

The 2026 reforms are expected to address long-standing calls for harmonization of Italy’s fragmented land-based gambling environment. This includes regulatory alignment across casinos, bingo halls, gaming arcades, and sports betting franchises. The objective is to create a federal framework with consistent standards and clarified responsibilities for local and regional authorities.

Review of the 2018 Dignity Decree

The government has also signalled its intention to review the Dignity Decree of 2018, which introduced a near-total prohibition on gambling advertising and sponsorship nationwide. Any potential revision is expected to be carefully evaluated due to public interest considerations and the legal sensitivities surrounding gambling promotion. At present, there is no indication of broad liberalization, but the inclusion of the decree within the planned review underscores the government’s willingness to reassess the legal landscape governing marketing and consumer engagement.

Industry response and operational outlook

Industry reactions to the new licensing framework have been measured and largely focused on compliance planning. Many operators view the clarity of a renewed regulatory system as beneficial for long-term strategic planning, even if the costs of entry and the removal of skins limit brand expansion options.

Market analysts have suggested that the consolidation may reduce short-term competition but could strengthen the reputation of the regulated market as a secure, well-governed digital environment. The emphasis on official identity verification, spending controls, and strict domain management reflects a regulatory approach prioritizing responsible conduct and systemic oversight.

Looking forward, operators expecting to remain competitive in Italy will likely need to invest in compliance infrastructures, user-verification technologies, and responsible gambling tools that align with national requirements. The elimination of skins, in particular, may encourage brands to enhance their core domains as the single point of engagement with Italian consumers.

Conclusion

Italy’s updated online gambling licensing framework represents a foundational shift in how digital gambling services are regulated and delivered within the country. By consolidating licences, strengthening compliance obligations, enforcing national digital identity verification, and maintaining strict consumer protections, the Italian government has introduced a system designed to reinforce stability and transparency across the sector.

The economic significance of the market remains substantial, and the reforms are poised to shape the operational strategies of both national and international operators in the coming years. With wide-ranging additional reforms scheduled for 2026, the current transition appears to be the beginning of a multi-stage modernization process that will continue to define Italy’s gambling landscape.

As the regulatory environment evolves, license holders will need to adapt to heightened expectations and prepare for the broader harmonization measures that will follow. The new framework marks the beginning of a more structured, accountable, and integrated era for one of Europe’s most influential gambling markets.

FAQ

What is the purpose of Italy’s new online gambling licensing system?
The system aims to modernize the market, increase oversight, strengthen player protections, and streamline regulatory management.

Why were hundreds of gambling websites closed?
Websites operating as skins are no longer permitted, and each operator must now operate a single domain under one licence.

How many operators are active under the new framework?
There are currently 46 active operators, although 52 licences were issued.

Why did some major brands not apply for licences?
Some brands chose not to participate for commercial or strategic reasons, including the high licence cost and strict compliance duties.

What is the cost of an Italian online gambling licence?
Each licence costs €7 million, making it one of the highest costs in Europe for such permissions.

What identity tools are now required for registration?
Players must register using Italy’s SPID digital ID or the electronic identity card (CIE).

Are self-exclusion tools still mandatory?
Yes, self-exclusion mechanisms and spending limits remain obligatory under the updated regime.

How much revenue does the Italian online gambling market generate?
The market generates around €3.8 billion in operator revenue and €5 billion in wagers annually.

What reforms are expected in 2026?
Italy plans to reform land-based sectors, including casinos and gaming halls, to create a harmonized federal regulatory structure.

Will the Dignity Decree be reviewed?
The government intends to review the decree as part of the 2026 reforms, although no final decisions have been announced.