New framework for online gambling licences in Italy

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New framework for online gambling licences in Italy

The government has released a new framework for online gambling licenses through the parliamentary gazette.

Under this framework, new nine-year online gambling concessions will be granted by the end of the year, each requiring a license fee of €7 million.

This fee represents a substantial increase compared to the €200,000 fee introduced in 2018, reflecting a 35-fold rise. In addition to the upfront fee, operators will also be required to pay 3% of their annual gross gaming revenue (GGR) after taxes.

The Ministry of Finance justifies this fee hike due to changing market dynamics, particularly the dominance of a few major operators like SNAI, Lottomatica (acquiring SKS365), Flutter, and Entain.

The new framework aims to resolve long-standing legal disputes over license renewals between operators and the Italian regulator, the ADM Customs and Monopolies Agency.

The government intervened to prevent ADM from terminating licenses set to expire in 2023 and 2024. However, the online gambling association Logico argues that the increased fees will stifle competition.

Under the new license terms, operators will be limited to one website and one app per gambling product, with no affiliated skin websites allowed. Technical rules will include requirements for customers to set play limits, with warning messages sent when limits are approached. The ADM will have authority to use payment blocking measures to combat unlicensed online gambling.