New regulations in Italy could see over 70 licensed operators leave and allow the black market to flourish, according to a European trade body.
The European Gaming and Betting Agency said the “severe consequences” which would result from the €7m licence fee reportedly proposed in a potential new Italian decree on online gambling would also include “grave implications” for player protection.
The EGBA noted the reported €7m proposal is a “35-fold increase” from the €200,000 licence fee in 2018 and “triples the Italian authorities’ previous license fee proposal of €2.5 million, which was never implemented.”
It said there would be a “drastic cut” in the number of operators from 91 to “a mere 15-20, contributing a significant increase in the size of the country’s online gambling black market, posing inherit risks for player protection.”
EGBA chief warns Italy's Council of Ministers
EGBA secretary general Maarten Haijer recently called on the Italian regulator to rethink the country’s gambling advertising ban amid mounting concerns about the black market.
Haijer said of the licence proposals: “The proposed increase in licensing fees is unparalleled and unheard of, it would make Italy the most expensive country in Europe to obtain an online gambling license.
“Together with the other restrictions in its gambling market, such as the local advertising ban, this proposed fee hike will make Italy a closed shop for new market entrants and lead to an exodus of existing licensees.
“This also raises concerns on compliance with EU law. We urge the Council of Ministers to reconsider the proposal, as it will make the country’s online gambling black market problem even worse, not better."
The EGBA has forecast that the unused €2.5m licence fee tender could yield “a similar or higher tax revenue” than the €105-140m in anticipated revenue from the newly proposed licence fee “without significantly harming market competitiveness.”
