Call to AAMS
AAMS' clampdown on Betfair in Italy represents a new approach from the regulator, argues lawyer Giulio Coraggio of DLA Piper Italy.
It seems that the tolerance of the Italian Gaming Authority (AAMS) to the unlawful offer of remote games to Italian residents without an Italian remote gaming licence has now reached an end.
AAMS has challenged Betfair Italia, the company of the Betfair group holding an Italian remote gaming licence (under which it runs the website Betfair.it), that it is the breach of the provisions of the Italian gaming licence agreement prohibiting the offer, also through affiliate companies, of games to Italian residents in breach of Italian law.
Indeed, Italian law allows the offer of remote games to Italian residents only under an Italian gaming licence. However, despite the applicable sanctions, Betfair was allegedly still offering its games to Italian residents through its Betfair.com website that is not operated under an Italian licence.
The gaming licence agreement entered into by Betfair Italia with AAMS entitles the latter, in case of performance of the challenged conduct mentioned above, to first issue a precautionary suspension of the licence and to subsequently terminate it. Indeed, this is the course of action that AAMS is currently performing with the suspension of Betfair Italia’s licence for a three-month period and the beginning of proceedings aimed at the termination of Betfair’s Italian licence.
Betfair tried to object to AAMS’ order of suspension, challenging it in the courts, but the order has been upheld, first by the Administrative Court of First Instance and now by the Administrative Court of Appeal. Such a double defeat might lead to the termination of Betfair’s licence, followed by the shutting down of the Italian Betfair website.
These proceedings are, to my knowledge, the first brought by AAMS against a primary operator and displays a new attitude by the Italian regulator. This new approach, in combination with new laws introduced late last year which oblige operators offering games to Italian residents without an Italian gaming licence to pay Italian taxes on the amounts unlawfully gained, is likely to finally push all operators to comply with the Italian licensing regime.
The timing of this action by AAMS is also significant, with the publication of the decree regulating the award of 200 additional remote gaming licences expected to occur imminently. We’ll see after this dispute if more operators targeting the Italian market will decide to apply for an Italian remote gaming licence.