Italy Enters Three-Month Standstill EC Inspection Period

Earlier in the week, we reported that Italy was preparing to complete a major gambling reform expected to shake the country’s industry. 

Now, the launch of the new framework for online gambling concessions has gone into a straight line, under the close supervision of the European Commission (EC).

Namely, the licensing regime has entered a three-month mandatory standstill period during which all European Union member states along with other stakeholders will have the chance to review and comment on the proposed changes.

Last month, the Italian Customs and Monopolies Agency (ADM) sent the papers describing the rules to the Treasury, as a result of the framework being published in April.

Open Consultation Launched by the EC

The standstill period, which has been initiated through the EC’s recent launch of an open consultation regarding the technical rules of the fresh licensing regime, will come to an end on October 18.

These rules refer to the functions, performance, and technical requirements that licensed operators will need to follow so they can operate and manage their remote gambling services.

Licensees will also have to focus on ensuring secure communication with Sogei, which is Italy’s IT service provider.

At the same time, all gambling platforms will need to base their IT infrastructure, which also incorporates cloud solutions, within the European Economic Area to fully comply with the data protection laws in the EU.

The EC’s consultation is, therefore, aimed at obtaining feedback on the way the new licensing regime would affect the IT sector in Italy.

The fresh measures also mention a series of strict regulations that would help prevent gambling addiction. 

The measures include the introduction of mandatory self-exclusion tools, as well as self-limitation options and features that would enable players to block themselves from gambling.

The rules also cover operators offering their services to other concessionaires while confirming a ban on “affiliated online websites” (“skins”). 

ADM licenses will enable separate apps for each game type. 

The list will include apps for poker, betting, bingo, and casino games.

Following the end of the consultation, provided there are no major objections or necessary changes, the ADM will proceed to launch the new licensing regime.

The government is expected to launch the tender documents in the official government bulletin for new remote gambling licenses in late December 2024 or early January 2025.

The First Phase of the Gambling Reorganization Decree, Completed

The new framework will also mark the completion of the first phase of the Gambling Reorganisation Decree. 

The latter represents the first regulatory gambling assessment in the country since the legalization of online gambling in 2011.

Aimed at safeguarding players, fighting off criminal activities, and bolstering tax revenues, the decree will continue with the Italian government’s planned revamping of laws and protections for land-based gambling across the 20 autonomous regions and 100 municipalities in the country.

The Ministry of the Economy and Finance has established that each new online gambling license will cost €7 million ($7.67 million), and will remain valid for nine years.