Italian gambling laws are pushing problem gamblers underground, LOGiCO warns
Trade group writes open letter to Italian president calling for constructive dialogue around online gambling regulation
Italy’s stringent gambling laws are driving problem gamblers underground and inadvertently undermining the entire regulatory system, Italian trade body LOGiCO has warned.
In an open letter addressed to Italian president Giuseppe Conte, LOGiCO president Moreno Morasco said the Italian government’s recent gambling regulatory changes were causing economic harm to operators and customers.
In the last year, the Italian government has banned gambling advertising via the so-called “dignity decree” and subsequently increased taxation on licensed egaming operators with effect from January 2019.
Morasco claims the Italian government, in wishing to address problem gambling, is driving problem gamblers underground and producing the “exact opposite” of the set objective in increasing the social costs stemming from problem gambling.
Qualifying this assessment, LOGiCO cites an earlier Istituto Superiore di Sanità (ISS) study, which showed that problem gambling was less common on licensed operator sites than on unlicensed alternatives.
The report also found the use of advertising had “limited weight” in determining consumer choice, with the ISS study finding that only 19% of players had chosen to gamble on sites after viewing an advert, whereas 80% said advertising had not determined their decision to gamble.
“It is therefore paradoxical that the outgoing government has introduced a ban on advertising and sponsorship rather than enhancing the regulation of online gaming already adopted in Italy,” Morasco adds.
In addition, Morasco cited the use of a blacklist of illegal operators, ID verification mechanisms and deposit/withdrawal limits as being “essential” to stopping problem gambling.
Morasco asserts that rather than banning advertising entirely, the quality of communications must be regulated, similar to alcohol advertising.
He cites LOGiCO initiatives in spreading awareness of social responsibility among its members, particularly using TV and online advertising.
As part of its efforts to ready its members for the ban, LOGiCO released 15 and 30 second commercials highlighting the issues of problem gambling for use by all its members.
Finally, Morasco expresses hope the letter will “arouse the interest of the new government in a correct understanding of the legal online gaming segment,” and offers the support of LOGiCO in the development of new initiatives to protect the industry and increase knowledge by players.