The European Gaming and Betting Association has “urgently” called upon Italy’s Council of Ministers to reconsider its proposed online gambling decree that features provisions that would reorganise the sector, in particular licensing fees.
The association added that the “possible introduction of (quasi) prohibitive licensing regimes and fees also raises concerns on compliance with EU law, which will merit consideration”.
With the decree currently under discussion in the Council of Ministers, EGBA noted that its proposed licensing fee of €7m is “unwarranted”, especially when compared to Italy’s prior online operator licence tenders of €200,000 in 2018 and the previous licence fee proposal of €2.5m that was never implemented.
In addition, the association claimed that the licence fee increase would have “severe consequences”, as it would deter new operators from entering the market and cause existing licensees to exit, cutting the current number of licensees from 91 to “a mere 15-20”.
The EGBA also believes that player protection could be at risk too as the licence fee hike would increase the size of the country’s illegal online gambling market, which is reportedly valued at over €1bn annually.
Maarten Haijer, Secretary General of the EGBA, commented: “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 licence.
“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.”
While the proposed licence fee is predicted to generate €105m to €140m for the Italian state, the EGBA believes that the previously proposed licence fee of €2.5m that wasn’t implemented could yield “similar or higher tax revenue without significantly harming market competitiveness”, so long as it doesn’t feature the “limiting factors of 40 licensees and an auction mechanism”.
Highlighting its commitment to work with Italian authorities on a licence fee framework that works for all and prioritises player protection, the association is “urgently” calling upon the Council of Ministers to reconsider the proposed fee structure.
The EGBA is also calling for the country’s advertising ban to be revoked “to allow regulated advertising that protects minors and vulnerable groups, while enabling licensed operators to market their regulated gambling offer”.