【Lapalingo】Italy’s New Online Gambling Framework up for Review

Italy’s new online gambling framework reaches the final legislative phase as the EU reviews the papers.

The Lapalingoregulatory frameworkof any online gambling sector can be a building or stumbling block for its industry.

Italy’s new online gambling frameworkhas been in the works for quite some time and is currently under review with the European Commission.

The framework has now reached its standstill period, which will end on 18 October 2024.

Under European Commission review

Any region that forms part of the European Union (EU) is required to notify the EC of any changesmade to its legislation that could impact the domestic market and competition rules. This includes every change made to its gambling regulations, as these must align with the EU guidelines.

The EC has started an open consultationto review the technical rules set forth by Italy's new gambling licensing regime. With this consultation, the EC will assess the new licensing framework's impact on different sectors, including Italy’s IT industry.

Why EC’s review is important

This review of the standstill period is important as it allows the EU to make sure it complies with standardsand does not serve as a disadvantage to others. The new licensing framework is in its mandatory three-month standstillperiod, during which all interested parties, alongside the EU member states, can review and provide feedback.

If the standstill period ends without any significant changes, Italy’s Agency of Customs and Monopolies (ADM) will launch the new licensing regime later this year or early next year. The plan is to begin processing new remote gambling licenses in late December 2024 or early January 2025.

Under the new framework, operators will be charged €7 millionto obtain a license, but each license will be valid for 9 years. The idea behind this pricing structure is to target and appeal to serious online casino operators while ensuring the state maintains its control over the market.

Some focus points for licensees

There are a lot of technical rules laid out in this new framework that set strict requirements for all licensees. According to these rules, operator platforms are expected to establish their IT infrastructure with the European Economic Area (EEA)to ensure it complies with EU data protection laws. This includes cloud solutions, which must also be based on the EEA.

Aside from the technological requirements, there is also a big emphasis on responsible gamblingpractices. All casinos wishing to operate in Italy must implement mandatory self-exclusion and self-limitation tools along with features that allow users to block their gaming activities to create a safer gambling environment.

The framework will also restrict any ‘skins’ or ‘affiliated online websites’ but will permit different apps for different game types, including betting, online casino games, poker and bingo. With this measure in place, Italy’s regulations aim to set clear regulatory boundaries while providing operators with the flexibility to offer a wide range of gaming services.

The future of Italy gaming

This new licensing framework is part of the Gambling Reorganisation Decree, which is the first detailed reassessment of Italy’s gambling regulationssince online gaming was legalised in 2011.

The decree's first phase is focused on online gambling, while the following phases will address land-based gambling laws and safety measures across Italy. The upcoming reforms are expected to significantly change the way gambling operators operate across the country.