Italy Welcomes New Online Gambling Licensing Regime with Comprehensive Reforms

Italy has officially approved a new licensing regime, documented through the EU’s Official Journal, marking the end of phase 1 of comprehensive reforms of the gambling industry.

The regulatory changes were submitted to the European Commission (EC) in November but experienced approval delays due to revisions presented by the Malta Gaming Authority (MGA) on B2B technicalities. While the plans are under an extended standstill period, the EC approved some changes sought by Italy’s Ministry of Finance (MEF) and Customs and Monopolies Agency (ADM).

The New Licensing Framework

Significant changes guaranteed to MEF and ADM include a €7 million authorization fee per license and a 3% concessionaire operating fee. New concession applications must be submitted by May 30^th, 2025. The review process can take up to nine months.

Applicants must meet stringent eligibility requirements to qualify for a license, including:

• Operators must maintain legal or operational headquarters in the European Economic Area (EEA), have a valid license, and demonstrate a minimum of €3 million in total revenues over the past two financial years.
• Concessions are limited to five per applicant.
• Licensing payments can be made in two instalments: €4 million upfront once the permit is approved and €3 million when launching commercial operations.
• Operational launch must be within six months of receiving a license.

Phase 2 Reorganization

Italy plans to progress to Phase 2 of the gambling industry reforms in 2025, focusing on long-standing land-based conflicts. This phase will enforce standard federal regulations nationwide and enhance the protection of gambling venues.

The second phase will also address the controversial Dignity Decree implemented in 2019. The mandate was passed by the former Lega-5-Star government, banning all gambling advertising and sponsorship forms. Industry stakeholders, media outlets, and Serie A clubs have lobbied for the changes.

Sector Prospects and Challenges

The ADM believes this reorganization provides an opportunity for Italy to regain its status as a leader in the European gambling industry. The changes are expected to generate higher tax revenues and put a handle on illicit operators.

Roberto Allesse, Customs and Monopolies Agency (ADM) Director General, praised this balanced approach to sustain economic growth while protecting consumers: “In a liberal state, legal gambling cannot endure excessive prohibitions. We must adapt national standards to those required by Europe.”