The European Betting and Gaming Association (EGBA) has publicly raised concerns about the new gambling licensing regime in Italy.
The Italian Regulatory Authority (ADM) is currently working on a new online gambling concession tender that will limit the number of online gambling licensees in the country to 40, up from 120 currently.
This means a two-thirds reduction, while the bill also recommends a sharp increase in the online license fee to 2.5 million euros - a price 10 times higher than during the previous tender.
Offers will become effective on January 1, 2023, at the end of the current licensing period, and will be valid for nine years after the auction, and not through fixed fees.
The EGBA, the Brussels-based trade association representing the leading online gaming and betting operators in the EU, has called on Italian authorities to notify the European Commission (EC) of their intentions for the new regime.
He suggested that this notification, for which it is mandatory, would allow the EU to scrutinize and determine whether the proposed Italian national laws are fully in line with EU law.
“While the EGBA values the discretion of member states, within certain limits, to set the cost of gambling licenses in their jurisdiction, this is an extremely high concession fee, which, combined with a sharp reduction in the number of online gambling licensees, will be a serious obstacle to a well-functioning market,” warned the secretary general of the trade organization, Maarten Hayer.
“It could potentially also weaken the viability of the regulated and licensed online gambling market in the country in favor of unlicensed operators that players in Italy can easily find online.
“If the new tender went into effect unchanged, it could become much more attractive for players in Italy to seek out and play with unregulated operators who would have much better offers and betting odds because they would not have to pay these fees or taxes. . .
“These players will no longer be protected by Italian consumer protection and gambling law, which would be contrary to the stated purpose of a regulated online gambling market in Italy,” he added.
Summarizing their concerns, the EGBA asked the Italian regulator to notify the EU of the bill, as notification is required under European law.
It has been suggested that failure to comply with this requirement could render the new law inapplicable to licensed Italian operators and consumers in the country's online gambling market.
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