Unlicensed operators profit as Italy ad ban hits Google

Google’s enforcement of the new Italian gambling advertising ban is pushing the websites of unlicensed international operators up search rankings at the expense of operators who are licensed in Italy, according to local reports.

The so-called ‘Dignity Degree’ outlaws all forms of advertising of gambling products and services on television, radio and the internet, as well as during sporting, cultural, and entertainment events.

In enforcing this ban, Google issued a notice to online gambling operators this week saying only “state lotteries with deferred drawing will be allowed to run gambling advertisements in Italy.”

Stakeholders have argued the initial impact from Google’s ban shows just how short-sighted the Dignity Decree is.

“The stop to the advertising wanted by the Decree Dignity has cleared the sector of all the legal operators, leaving space to the illegal ones,” said local gaming news outlet Agimeg.it.

“In other words, a player wishing to place a bet will be directed by Google to those illegal sites, effectively nullifying all the measures of player protection in direct contrast to the game that underlies the Decree Dignity,”

Speaking in Rome earlier today, Italian deputy prime minister Luigi Di Maio called the abolition of gambling advertising the “first step” in a wider clampdown on the gambling industry. Di Maio then said that the Italian government would intervene against the spread of gambling using legal measures.

The outcry against the advertising ban by the Italian government has been widespread, with Maarten Haijer, Secretary General, European Gaming and Betting Association (EGBA) recently calling the ban “counterproductive”.

Haijer added: The Government should instead focus on encouraging responsible gambling advertising which sufficiently directs consumers to the regulated operators and at the same time does not entice problem gamblers or young people to gamble.”

Many gambling firms have hurriedly tried to conclude sponsorship deals with Serie A football teams before the ban takes effect, with Betway recently agreeing a three-year deal to sponsor AS Roma, despite Di Maio alleging that advertising contracts entered by gambling firms following publication of the degree and its enforcement would not be valid.

Simone Cadeddu, partner at Bird & Bird said: “If the ban is confirmed in its entirety, the State, gambling operators, media operators and advertising agencies would be significantly affected.

“The Italian specialised news agency, AGI, predicted a €700 million income decrease over three years for public finances, accompanied by at least a 2% reduction in gambling expenditure and a negative impact on national TV (loss of €70 million) and advertising media owners (loss of €130 million divided between soccer teams, radio and local TV).”