Italy has a long and interesting history of gambling – as a form of entertainment, it was present in ancient times when the Romans seemed to love gambling on practically everything. Today, many Italians participate in lotteries, bet on sports, and play various casino games. The Italian gambling legislation is considered fairly liberal, allowing practically all forms of gambling to be carried out in both land-based and online environments.
Compared to the rest of Europe, Italy’s approach to gambling is more positive and straightforward. Although offered in a highly regulated environment, this form of entertainment is available to everyone, except for minors, of course. Both local and foreign firms can apply for a license, whether for land-based or online betting and gambling operations, as long as they meet all requirements. Unlike some countries in Europe, there is a single authority that regulates the market and is responsible for the supervision of the industry and the issuing of licenses.
Legal Landscape in Italy
The legal landscape in Italy is quite straightforward, at least when it comes to gambling and online casinos, in particular. The country is divided into 20 administrative regions but they have no legislative or other authority on gambling activities. All forms of gambling, including land-based and interactive operations, must be authorized and regulated at a state level. This is one of the most basic principles in the Italian gambling legislation and it is clearly stated in Article 1 of Legislative Decree no.496 of 14 April 1948. Therefore, any non-authorized gambling activity is considered illegal, while the most serious cases are deemed a criminal offense.
All forms of gambling in Italy are regulated by primary legislation, which includes multiple Civil Code provisions and some specific laws. Gambling activities are also governed by secondary legislation, i.e. 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 is 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 gone through different phases over the years, with authorities banning a certain form of betting and legalizing it after a few years. Sports betting and various lotteries have been traditionally offered and regulated through ministerial decrees since the 1930s. Under section 721 of the Criminal Code, which was enacted at that time, gambling is defined as any game where a win or a loss is entirely or almost entirely determined by chance and a win results in a profit.
The legislation identifies several different forms of terrestrial gambling. One of them is casinos, namely the establishments in San Remo, Saint Vincent, Campione d’Italia (currently closed due to bankruptcy), and Venice. They are regulated by the ADM and at local level, as well. The law also has provisions for gaming machines, sports and horserace betting, bingo, lotteries, and pool betting. Practically, all land-based gambling or betting operations with an Italian license are allowed and available to persons aged 18 or over.
Online Gambling and Casinos
Driven by technological innovation and the increasing demand for better, faster, and more convenient ways to gamble, interactive gambling has gained immense popularity in the past decade with new online casinos and betting sites being created every day. Europe is the largest and most competitive market for online gambling, accounting for 49.2 percent of the global industry in 2018, while one of the fastest-growing national markets is Italy.
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 the player base over the past several years. In 2019, the Italian iGaming market grew by 13.3% to €1.73 billion, driven by the online casino sector, which saw the biggest increase in revenues, followed by Italians’ favorite pastime, betting on sports. Web-based casino revenues grew by an impressive 17.1% to €831.4 million, while online betting rose 13.2% to €725.2 million.
Due to the strict regulation provided by the country’s national gambling watchdog, the ADM, playing at an Italian online casino is completely safe for patrons. Unlicensed operators, which are usually offshore firms, are considered unsafe and their websites are blocked by the agency. Overall, the current online gambling environment in Italy provides players with high levels of security, fairness, legal and financial protection, as well as 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 charges operators based 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 came into effect on January 1, 2019. The new taxes are as follow:
- 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 with Article 9 of the Decree-Law 12 July 2018 as a measure to combat gambling addiction. In addition, the law placed a sponsorship ban on 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 the provisions. According to the law, practically all gambling ads posted directly or indirectly on any media or through any other means – sport, cultural or artistic event, television or radio broadcast, print newspaper or any other print publication, billboards or the Internet, are not allowed.
Still, AGCOM’s guidelines partially liberalized 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 on a 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 three main tax agencies in the country, the others being the State Property Agency and the Revenue Agency.
Initially, its sole responsibility was the 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 only politically dependent on the Ministry of Economy and Finance. This means that the authority has regulatory, administrative, patrimonial, organizational, accounting and financial autonomy.
ADM regulates online games and casino operations and issues secondary legislation, relating to gambling. It is responsible for enforcing all relevant regulatory provisions, for collecting taxes, and for combating illegal gambling activities. The agency also has the right to issue and revoke licenses if it detects compliance issues or illegal activity. Licensees are allowed to offer gambling products and services they have been authorized for only to Italian residents.
The agency opens a licensing procedure once in several 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 last two years and it must comply with 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 over €1,000.