EGBA fires warning shot over Italy’s future licensing regime
Trade association predicts “major barriers to well-functioning market” and instructs ADM to notify the European Commission of its regulatory intentions
The European Betting & Gaming Association (EGBA) has gone public with its concerns over Italy’s new-look gambling licensing regime.
The Italian regulator (ADM) is currently working on a new tender for online gambling concessions that would limit the number of online licensees in the country to 40, down from 120 currently.
This marks a reduction of two thirds, while the draft law also recommends a dramatic increase in online licence fees to €2.5m – a price 10 times larger than during the previous tender.
The proposals would take effect from 1 January 2023, at the end of the current licensing term, and last for a period of nine years following an auction process, rather than through fixed fees.
The EGBA, a Brussels-based trade association representing the EU’s leading online gaming and betting operators, has called on the Italian authorities to notify the European Commission (EC) over its intentions regarding the new regime.
It suggested this notification, for which it is duty bound, would allow the EC to scrutinise and determine whether Italy’s proposed national laws are in full compliance with EU law.
“While the EGBA appreciates the discretion, within certain boundaries, of member states to set the cost for gambling licences in their jurisdiction, this is an extremely high concession fee and, coupled with the drastic reduction of the number of online gambling licensees, would be a major barrier to a well-functioning market,” warned the trade body’s secretary general Maarten Haijer.
“This could potentially also weaken the viability of the country’s regulated and licensed online gambling market in favour of unlicensed operators who can easily be found online by players in Italy.
“If the new tender would enter into force unchanged, it could become much more attractive for players in Italy to look for and play with unregulated operators, who would have much better offers and betting odds because they will not have to pay these fees or taxes.
“Those players would no longer be protected by Italian consumer protection and gambling legislation, which would be contrary to the stated objective of the regulated online gambling market in Italy,” he added.
Summarising its concerns, the EGBA has asked the Italian regulator to notify the draft legislation to the EC as notification is required by European law.
It suggested failure to do so could render the new law inapplicable to Italian-licensed operators and consumers within the country’s online gambling market.