Italy has a long and interesting history of gambling. As a form of entertainment, it was present in ancient times, when the Romans loved wagering on practically everything. Today, many Italians participate in lotteries, bet on sports, and play various casino games. Italian gambling legislation is considered fairly liberal, allowing nearly all forms of gambling to take place in both land-based and online environments.
Compared to the rest of Europe, Italy’s approach to gambling is more positive and straightforward. Although it is offered in a highly regulated environment, this form of entertainment is available to everyone except minors. Both local and foreign firms can apply for a license for land-based or online betting and gambling operations, as long as they meet all requirements. Unlike in some European countries, a single authority regulates the market, supervises the industry, and issues licenses.
Legal Landscape in Italy
The legal landscape in Italy regarding gambling, especially online casinos, is relatively straightforward. The country is divided into 20 administrative regions, but none of them have legislative or other authority over gambling activities. All forms of gambling, including land-based and interactive operations, must be authorized and regulated at the state level. This fundamental principle of Italian gambling legislation is clearly stated in Article 1 of Legislative Decree no.496 of 14 April 1948. Therefore, any unauthorized gambling activity is illegal, and the most serious cases are treated as criminal offenses.
All forms of gambling in Italy are regulated by primary legislation, which includes multiple Civil Code provisions and several specific laws. Gambling activities are also governed by secondary legislation, namely the regulations issued by the national gaming authority Agenzia delle Dogane e dei Monopoli (ADM). Under Italian law, online gaming operations can be carried out only after obtaining an Italian license. Both land-based and interactive gambling are prohibited for minors (individuals under the age of 18).
Land-Based Gambling
Online Gambling and Casinos
Land-Based Gambling
The legal status of gambling has changed repeatedly over the years, with authorities banning certain forms of betting only to legalize them later. Sports betting and various lotteries have traditionally been offered and regulated through ministerial decrees since the 1930s. Section 721 of the Criminal Code, enacted during that period, defines gambling as any game in which a win or loss is entirely or almost entirely determined by chance and the win yields a profit.
Legislation recognizes several forms of land-based gambling. One category is casinos, specifically the establishments in San Remo, Saint Vincent, Campione d’Italia (currently closed because of bankruptcy), and Venice. They are regulated by the ADM, as well as at the local level. The law also covers gaming machines, sports and horserace betting, bingo, lotteries, and pool betting. Practically all land-based gambling or betting operations with an Italian license are permitted and available to persons aged 18 or over.
Online Gambling and Casinos
Driven by technological innovation and the growing demand for faster, more convenient ways to gamble, interactive gambling has become immensely popular over the past decade, with new online casinos and betting sites launching every day. Europe is the largest and most competitive market for online gambling, accounting for 49.2 percent of the global industry in 2018, and Italy is one of its fastest-growing national markets.
Despite the recent advertising and sponsorship restrictions introduced by the government, the interactive casino sector remains strong, reporting solid performance and a steady increase in its player base over the past several years. In 2019, the Italian iGaming market grew by 13.3% to €1.73 billion, driven primarily by the online casino sector, which saw the largest revenue increase, followed by Italians’ favorite pastime, sports betting. Web-based casino revenues grew by an impressive 17.1% to €831.4 million, while online betting rose 13.2% to €725.2 million.
Thanks to strict regulation by the country’s national gambling watchdog, the ADM, playing at an Italian online casino is completely safe for patrons. Unlicensed operators, usually offshore firms, are considered unsafe and their websites are blocked by the agency. Overall, the current online gambling environment in Italy offers players high levels of security, fairness, and legal and financial protection, along with a wide variety of casino sites and games.
Taxation
Advertising
Taxation
In 2009, a flat tax rate of 20% was introduced for most types of online gambling products. It replaced the old tax regime, which was based on operators’ turnover. The new system taxes operators on the gross gaming revenue (GGR) they report. In 2018, the Italian government increased the taxes for iGaming operators.
After approval by the European Commission and final passage in the Italian Senate and the House of Representatives, the budget proposal took effect on January 1, 2019. The new taxes are as follows:
- 25% of GGR on online casino and bingo
- 24% of GGR on online fixed-odds betting
- 20% of GGR on land-based sports betting
- 22% of GGR on virtual sports
Advertising
Italy introduced a blanket ban on gambling advertising with the so-called Dignity Decree, the country’s new employment law, which entered into force on 14 July 2018. The ban was imposed through Article 9 of the Decree-Law 12 July 2018 as a measure to combat gambling addiction. In addition, the law placed a sponsorship ban starting January 1, 2019.
Later that year, Italy’s advertising and communications regulator, Autorità per le Garanzie nelle Comunicazioni (AGCOM), issued guidelines on the ban, clarifying many of its provisions. Under the law, virtually all gambling ads posted directly or indirectly on any medium or through other means, including sports, cultural or artistic events, television or radio broadcasts, print newspapers or other publications, billboards, or the Internet, are prohibited.
Nevertheless, AGCOM’s guidelines partially relaxed the blanket ban, allowing the promotion of social and charitable initiatives, as well as the limited use of gambling brand names by affiliates.
Regulatory Authority
The regulatory authority responsible for supervising online casinos and all forms of land-based and internet gambling at the national level is the Agenzia delle Dogane e dei Monopoli (ADM), or the Customs and Monopolies Agency. It was established by Article 57 of Legislative Decree No. 300 of 30 July 1999 as one of the country’s three main tax agencies, the others being the State Property Agency and the Revenue Agency.
Initially, its sole responsibility was customs, but in 2012, pursuant to Decree-Law No. 95 of 6 July 2012, it incorporated the Autonomous Administration of State Monopolies (AAMS), the former regulatory body for the gambling industry. The new agency, ADM, now has two main departments: Customs and Monopolies, and it is politically dependent only on the Ministry of Economy and Finance. This means the authority has regulatory, administrative, patrimonial, organizational, accounting, and financial autonomy.
ADM regulates online games and casino operations and issues secondary legislation related to gambling. It is responsible for enforcing all relevant regulations, collecting taxes, and combating illegal gambling activities. The agency also has the right to issue and revoke licenses if it detects compliance issues or illegal activity. Licensees may offer their authorized gambling products and services only to Italian residents.
The agency opens a licensing procedure every few years, and any gaming operator licensed anywhere within the European Economic Area (EEA) is eligible to apply. The firm must have recorded a minimum gaming turnover of €1.5 million over the previous two years, and it must meet the standard “fit and proper” requirements. Under the current anti-money laundering legislation, online operators are required to identify and verify players who make transactions exceeding €1,000.
