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Surge in Italian Online Gambling Licence Fees

Surge in Italian Online Gambling Licence Fees
by
December 20, 2023
in iGaming News, Licenses & Payments
245

The European Gaming and Betting Association (EGBA) has raised serious concerns about a proposed increase in online gambling licence fees in Italy. The association is urging Italian lawmakers to reconsider the potential fee hike, emphasizing the detrimental impact it could have on the country’s online gambling industry.

The Proposed Decree

The EGBA has expressed deep concern regarding the proposed Italian decree on online gambling, which is currently under discussion by Italy’s council of ministers. According to reports, the decree could introduce a staggering €7 million licence fee for operators. This represents a substantial 35-fold increase compared to the 2018 licence fee of €200,000. Additionally, it triples the government’s previously planned increase to €2.5 million, which was never implemented.

Financial Implications

The EGBA estimates that the proposed licence fee could generate between €105 million and €140 million for the state. However, it argues that the previously suggested €2.5 million fee could yield a similar or higher tax revenue. Despite the potential financial gains, the association warns that the proposed law would dramatically reduce the number of licensed operators from 91 to just 15-20.

EGBA’s Concerns

In response to the proposed fee hike, the EGBA is calling for a reconsideration, labeling it as “unprecedented” and “unwarranted.” The association contends that such a significant increase would discourage new market entrants and likely force existing licensees, especially smaller operators, out of the market. EGBA stresses that the primary focus of Italy’s gambling regulation should be the protection of players and the cultivation of a fair and competitive market.

Impact on Competition and Player Protection

The association argues that limiting competition to only a few operators, as proposed, risks undermining player protection. EGBA is concerned that the decree could lead to a significant increase in the size of the country’s online gambling black market, which is already valued at more than €1 billion annually. The association believes that the introduction of quasi-prohibitive licensing regimes and fees may raise compliance concerns with EU law.

Opposition to Advertising Ban

In addition to its stance on licence fees, the EGBA reiterates its opposition to a blanket gambling advertising ban in Italy. It suggests that the existing advertising ban should be revoked to allow regulated advertising that protects minors and vulnerable groups. Despite these concerns, the EGBA expresses its commitment to collaborating with Italian authorities to develop a sustainable licence fee framework.

EGBA Secretary-General’s Warning

Maarten Haijer, the secretary-general of EGBA, warns that Italy is at risk of triggering an “exodus of existing licensees.” He emphasizes that, combined with other restrictions, the proposed fee hike could turn Italy into a closed shop for online gambling. Haijer urges the council of ministers to reconsider the proposal, stating that it could worsen the country’s online gambling black market problem rather than improve it.

Italy’s Online Gambling Black Market

Italy’s online gambling black market is highlighted as one of the largest in Europe, with an estimated annual value exceeding €1 billion. The EGBA’s concerns regarding the potential surge in the black market underscore the urgency of addressing the proposed licence fee increase.

Frequently Asked Questions (FAQ)

What is the European Gaming and Betting Association (EGBA)?
The EGBA is an industry association representing online gaming and betting operators in Europe.

Why is the EGBA opposed to the proposed Italian online gambling licence fee increase?
The EGBA is concerned that the substantial fee hike could have severe consequences, discouraging new entrants and forcing existing operators out of the market.

How much is the proposed licence fee increase in Italy?
The proposed fee is €7 million, a 35-fold increase from the 2018 fee of €200,000.

What impact could the fee hike have on the number of licensed operators in Italy?
The EGBA estimates that the proposed law could reduce the number of licensed operators from 91 to 15-20.

What financial implications are associated with the proposed licence fee?
The EGBA suggests the fee could generate between €105 million and €140 million for the state, but warns against potential negative consequences for the industry.

How does the EGBA view the proposed fee hike in the context of EU law?
The association suggests that the introduction of quasi-prohibitive licensing regimes and fees may raise concerns about compliance with EU law.

What is the EGBA’s stance on a gambling advertising ban in Italy?
The EGBA opposes a blanket gambling advertising ban, suggesting that regulated advertising is crucial for protecting minors and vulnerable groups.

What is the estimated value of Italy’s online gambling black market?
The black market is valued at more than €1 billion annually, making it one of the largest in Europe.

How does the EGBA propose addressing the issue of licence fees in Italy?
Despite opposition, the EGBA expresses its commitment to working with Italian authorities to develop a sustainable licence fee framework.

What warning does EGBA Secretary-General Maarten Haijer issue regarding the proposed fee hike?
Haijer warns of a potential “exodus of existing licensees,” stating that the proposed fee increase, along with other restrictions, could make Italy a closed shop for online gambling.

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