Italian advertising ban 'unlikely to pass'

The proposed ban on gambling-related advertising included in the latest draft of Italy’s new gambling law is unlikely to pass and could trigger legal challenges, eGaming Review understands.

Delays to the new law known as the Delega Fiscale decree, which will overhaul Italy’s regulatory framework and ditch the turnover tax on sports betting in favour of a gross gaming revenue model, were confirmed earlier this month.

But since then the government has decided that any changes should be put before parliament, with Prime Minister Matteo Renzi declaring the reform debate “still not mature”.

Since deciding to put the proposals before parliament, a new provision for the banning of gambling advertising has been inserted, with only sponsorship deals and institutional advertising omitted from the prohibition.

However, because operators have already paid for and been issued with licences which did not include a ban, they would be in a strong position to litigate for damages.

Several operators in Italy have also told eGR that they are not overly concerned by the prospect of a ban at this stage, while a source at the Italian regulator AAMS said a ban remained unlikely.

“An attempt to ban gambling advertising has been performed in several instances but never succeeded,” Giulio Coraggio, a partner at law firm DLA Piper, said. “Considerable damage claims might be brought by licensed operators that paid for an Italian licence, held considerable investments in the Italian market and could find themselves prevented from exploiting their licence.

“At the same time, the advertising industry might lobby against such proposal given that gaming operators are high advertising spenders,” he added.

Earlier this month figures for Italy’s regulated market showed that gross gaming revenues for casino and sportsbook continue to grow, with the two verticals increasing by 32% and 22% respectively in May.