Italy Delays Online Gambling License Tender After Malta’s Compliance Objections

Italy’s upcoming tender for online gambling licenses has been postponed, with the European Commission (EC) extending the standstill period to November 18 following objections from Malta. The Malta Gaming Authority (MGA) raised concerns that the new framework could impose excessive compliance barriers on B2B operators, specifically platform and system providers, which might hinder cross-border business operations within the EU’s single market.

The MGA argues that Italy’s new requirements for B2B companies, like additional technical checks and compliance measures, could duplicate regulations that operators already adhere to in other EU states. In a statement to the EC, the MGA warned, “Member States should recognise that B2B operators may already hold licenses in other Member States and may be subject to myriad requirements and checks, which could easily be mutually recognised if a cooperation framework is set up for this purpose.” According to the MGA, these extra compliance demands could restrict B2B operators’ freedom of establishment and service provision within the EU.

In response to Malta’s objections, the Italian government is preparing a formal reply through the Treasury to defend the necessity of the proposed technical requirements. The Ministry of Economy and Finance (MEF) has set guidelines for the new licensing structure, designed to regulate online gambling operations on the Italian market under a nine-year licensing term. The cost for each license is set at €7 million, with an additional annual 3% licensing fee applied to gross gaming revenue (GGR), after deductions for gambling taxes and winnings.

Once the standstill period concludes, the Italian Agency of Customs and Monopolies (ADM) will roll out the new licensing regime. Current license holders will be granted a one-year extension until December 31, as permitted under Italy’s Budget 2024 guidelines. The ADM anticipates that around 50 operators will apply for licenses under the new scheme, with expected revenue from licensing fees reaching approximately €350 million, while fixed concession fees are forecasted to contribute an additional €100 million annually.

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Italy’s updated licensing framework includes specific restrictions for business-to-consumer (B2C) operators, requiring each licensed operator to limit their platform to “one app per gambling product type and one website.” The new framework will also strictly regulate “skin” websites, which promote branded versions of products on third-party sites. Violations of these restrictions could result in fines and penalties from the ADM, ensuring adherence to a single-brand online presence.

Furthermore, Italy’s new licensing conditions will emphasize responsible gambling. All licensed online casino operators must implement mechanisms allowing players to set personal limits on time and spending, alongside alert systems that notify users when they approach or exceed these limits. These features are intended to promote safer gaming practices as part of Italy’s commitment to consumer protection in the gambling industry.

Source:

“Malta opinion sees Italy delay yet guarantee regime change for online gambling“, sbcnews.co.uk, October 29, 2024.