The European Commission (EC) has prolonged the standstill interval on Italy’s anticipated new licensing framework for on-line playing, following objections from Malta. The EC’s determination, which delays Italy’s tender for on-line playing concessions till 18 November, comes after Malta raised important considerations concerning the technical and compliance necessities imposed on B2B companies beneath Italy’s proposed rules.
Malta’s Objections to Italian Compliance Requirements
The Maltese authorities, by way of its Gaming Authority (MGA), submitted a proper ‘detailed opinion’ to the EC, warning that Italy’s framework may create “unnecessary barriers” for B2B companies, equivalent to gaming platforms and system suppliers. The MGA argued that Italy’s new necessities duplicate current licensing requirements, which may pose further compliance prices and operational challenges for B2B corporations already licensed in different EU states.
In response, the MGA known as on Italy to acknowledge current licenses and compliance checks that B2B operators have undergone in different EU jurisdictions. “Member States should recognise that B2B operators may already hold licences 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,” the MGA suggested.
The EC’s extension requires Italian authorities to supply “sufficient justification” for the extra necessities, aiming to stop the brand new framework from changing into “an obstacle to both the freedom of establishment and the freedom of the provision of services within the internal market.”
Italy’s Licensing Structure and Financial Expectations
Italy’s new on-line gaming licenses are designed to final 9 years, priced at €7 million every. Additionally, licensees will incur an annual price of three% of their gross gaming income (GGR), web of playing taxes and participant winnings. As a part of Budget 2024, Italy is providing present license holders the choice to increase their licenses for an extra 12 months, permitting them to proceed working by way of 31 December whereas the brand new system takes impact.
To restrict market saturation, the Italian framework introduces stringent guidelines for B2C operators, limiting license holders to “one app per gambling product type and one website.” The Agency of Customs and Monopolies (ADM) will implement these rules, penalizing operators utilizing further pores and skin websites or branding methods. ADM anticipates that fifty operators will apply for brand new licenses, producing €350 million in one-time concession charges and €100 million yearly by way of fastened charges.
Connection to Broader Italian Gambling Trends
This delay and the MGA’s involvement mirror rising considerations over Italy’s evolving playing panorama. Italy’s new framework is a part of a broader regulatory overhaul detailed within the Gambling Reorganisation Decree, which marks the nation’s first main regulatory replace since legalizing on-line playing in 2011. The decree’s phased method will begin with on-line playing after which transfer to regulate land-based playing rules, offering a complete overview throughout Italy’s areas and municipalities.
One small Italian municipality, Calliano, has not too long ago attracted attention attributable to its exceptionally excessive common per-resident playing spend of €12,749 in 2023, totaling over €19 million for the neighborhood. This sample, a part of a research on playing traits in small cities, factors to underlying regulatory challenges and the potential for regional influence. The Customs and Monopolies Agency’s investigation highlights the necessity for native regulation to deal with playing’s results on smaller communities.
The Reorganisation Decree’s subsequent part will deal with land-based playing to deal with these regional variances, underscoring the necessity for accountable playing measures that account for neighborhood well being and well-being throughout Italy’s various locales.
Next Steps for Italy’s Online Gambling Licensing
With the prolonged standstill interval, Italy’s Treasury is getting ready a proper response to Malta’s objections. Once the standstill interval concludes, Italy’s ADM will implement the brand new licensing regime, pending any additional changes. Under the Ministry of Economy and Finance’s (MEF) steerage, new accountable playing measures can even be included, requiring operators to supply customers with spending and cut-off dates, in addition to notifications to alert gamers when these limits are reached.
The new licensing system, if carried out as proposed, is predicted to reshape Italy’s playing trade by introducing extra restrictive measures and considerably larger licensing prices. Industry analysts anticipate that these adjustments will deter smaller operators from coming into the market, concentrating competitors amongst bigger corporations able to assembly the elevated compliance and monetary obligations.
As Italy strikes ahead with this new licensing regime, Malta’s affect highlights the significance of harmonizing EU-wide playing rules. The EC’s response to Malta’s considerations may set a precedent, emphasizing the necessity for streamlined rules that acknowledge current licenses throughout EU Member States, finally supporting a extra built-in and aggressive European playing market.
Source:
Malta opinion sees Italy delay yet guarantee regime change for online gambling, sbcnews.co.uk, October 2, 2024.
