Gambling in Italy is closely associated with the ancient heritage of the Roman Empire. The country takes pride in being home to the world’s oldest land-based casino, Ridotto, which opened its doors in 1638. The gambling house is considered the predecessor of modern casinos. Even though Ridotto was open to the public, only Italian nobility could enjoy its gambling services because of the high stakes and strict dress code.
Interestingly, the word “casino” stems from the Italian word “casa,” which means house. Gambling in Italy has been legal since the 1900s, but the law that governs the industry has been amended on several occasions. Currently, the country is believed to have one of the most adequate gambling frameworks within the European Union, serving as a role model for countries that are considering relaxing their gambling laws.
Legal Forms of Gambling in Italy
Under Italian criminal law, gambling is illegal, and organizing gambling activities in public or private venues is considered an unlawful act. In Italy, illegal gambling is defined as wagering real money on an uncertain outcome in a game of chance for the opportunity to win a prize. Consequently, the authorities distinguish between games of chance and games of skill.
The AAMS
Taxes on Gambling WinningsWhat is the Size of the Italian Gambling Market?
The Italian gambling market is considered the second largest in Europe, generating annual revenue of more than €80 million for the country’s Treasury. According to data published by Statista, in 2015 Italian players wagered a total of €88.2 billion on online and offline gambling activities. The amount wagered in 2016 reached €96.1 billion, and in 2017 the figures show that €101.75 billion was wagered in Italy.
In 2018, the total continued to rise, reaching €106.86 billion. Statistics further reveal that Italian players spent a total of €110.54 billion in 2019. In other words, the amount wagered on all forms of gambling in Italy increased by more than €20 billion between 2015 and 2019.
Locals’ Yearly Gambling Spendings
Leading Operators in ItalyWant a License in Italy? Turn to the ADM
Amministrazione Autonoma dei Monopoli di Stato (AAMS) was renamed Agenzia delle Dogane e dei Monopoli (ADM) in 2012 under Decree Law No. 95. The agency is responsible for overseeing and controlling the gambling industry in Italy, as well as issuing licenses to operators.
In addition, the agency can impose fines and suspend or revoke licenses. Among its main goals is to combat illegal gambling activities and ensure a safe gambling environment. ADM is also tasked with collecting gaming taxes and protecting individuals from gambling-related problems.
Its other functions include the administration of customs duties, management of customs services, oversight of the manufactured tobacco products sector, prevention of tax evasion, management of chemical laboratories, and promotion of, and participation in, associations.
AAMS was established in July 1999 under Legislative Decree No. 300 as one of the three tax agencies in Italy. Since 2012, the agency has had legal status and regulatory, administrative, and financial autonomy. In April 2018, the Ministry of Economy and Finance approved drastic changes to the agency’s functions and organization, outlining the major missions mentioned above.
With regard to gambling, the tax agency regulates the following forms of gambling:
- Terrestrial casinos
- Slot machines and video lotteries
- Sports and horserace betting both online and offline
- Online and offline pool betting
- Online and offline bingo and lotteries
- Online poker and other card games
- Virtual and live betting
Requirements for Obtaining Gambling Permits in Italy
The Italian online gaming licensing regime is not the most straightforward. Casino operators that wish to legally operate in the Italian market need to obtain a license from ADM, the agency that monitors the gambling industry throughout the country. Before submitting their application documents, casino operators must meet certain requirements to be eligible for an Italian gambling license.
Under Italian law, operators must place their servers in a country that is part of the European Economic Area (EEA). Moreover, operators need to present a bank guarantee of €1.5 million as security to ensure that they can pay out players’ winnings.
Furthermore, applicants must hold a license issued in another European jurisdiction. The agency will also check applicants’ moral probity to make sure that only reputable operators gain access to the lucrative Italian gambling market.
Licensing Application and Issuance Procedure
The Italian casino license is among the most sought-after documents in the industry, as it allows operators to provide all kinds of gambling services throughout the country. Additionally, the gambling industry in Italy has witnessed steady growth over the past few years, adding further appeal to the market.
From casino games to sports betting, the Italian license covers all types of gambling activities. In other words, casino operators do not need to apply for several licenses to offer multiple gambling options. It is important to note that expired licenses are not renewed automatically. Below, our expert team provides detailed information about the steps operators must follow to apply for a license:
Italy to Reduce the Number of Online Gambling Licenses
In 2019, the Italian government revealed its plans to reduce the number of online gaming licenses from 85 to 50. The new measures are expected to come into effect in 2023. The government is also considering raising the cost of online gambling licenses to €2 million. Officials have additionally proposed extending the duration of gambling licenses to nine years.
The new public tender is expected to commence in 2021 or 2022. Operators that wish to enter the Italian market will be able to pay for their gambling licenses in two installments. The first installment must be paid within 30 days of receiving the license and must cover at least 50% of the total cost. The second installment is due within 30 days after the license is signed.
The government is also considering limiting the number of slot machines to 250,000, allowing a maximum of 58,000 video lottery terminals, and permitting up to 2,800 gaming halls to operate throughout the country. The new regime aims to curb steadily rising gambling addiction rates.
The Cost of Operating on the Italian Gambling Market
Obtaining an Italian casino license is not the most cost-effective endeavor, but it can be worthwhile given the size of the country’s gambling market. Compared with other EU countries, the Italian gambling license is quite pricey.
Tax Hike
Turnover Gambling TaxSanctions for Violation of the Licensing Conditions
Heavy fines await errant gambling operators as the Italian government adopts tougher measures against illegal gambling. Participants in illicit gambling operations will face criminal sentences of up to six years. In addition, gambling companies that assist criminal operations will incur fines of €50,000, while betting retail shops or arcade venues that allow unauthorized gaming terminals will face a €20,000 penalty.
Blocking Gambling Sites
Minimizing Gambling-Related ProblemsFinal Words
Overall, ADM has taken the right steps to shield vulnerable individuals and children from gambling exposure. However, we must point out that burdensome taxes may trigger an exodus of operators. We have witnessed similar scenarios in which regulators imposed steep taxes, and the result was always the same: licensed and legitimate operators left the market.
Italy has always been considered a lucrative market because of the high demand for gambling services among locals. Nevertheless, some industry insiders believe that the tax hike and the recently introduced turnover-based gambling tax may harm the rapidly growing Italian online gambling market.