Expanded partnership accelerates growth of online gaming across Italy
Let's Dish: The Shaky Trio Strikes Italy's Digital Gaming Scene
Two gaming heavyweights, Greentube and Betfair, team up to bolster their digital gaming presence in Italy and cater to the region's insatiable appetite for cutting-edge content. Greentube, the digital offshoot of NOVOMATIC, has solidified its position by partnering with Betfair, a subsidiary of Flutter Entertainment. Using Capecod as the integration tool, Greentube broadens the scope of its offerings, confirming its dedication to delivering next-gen gaming experiences in harmony with industry operators. This strategic alliance in Italy highlights the significance of penetrating one of Europe's most regulated, pristine, and speedily evolving gaming markets.
Ciao Bella Italia: The Ins and Outs
Italy is Europe's OG gaming market, its roots traceable back to the state lottery dating from 1530 and the formal legalization of casinos in 1948. However, the most passe moment occurred in 2006 when the Bersani law opened the floodgates for online gaming and foreign operators, transforming Italy into a hotbed for gaming action. Subsequently, the nation tinkered with its regulations to match EU standards, exerting tight control over the sector.
As we edge closer to 2025, Italy's government has rolled out a new regulatory framework that will redefine access and operation in the online gaming sector, starting from late 2024. The new framework introduces stringent requirements and considerably higher costs for obtaining licenses, making the market less congested while favoring quality rivals. Revenue is predicted to surpass €5.5 billion by 2025, asserting Italy's status as one of Europe's most lucrative online gaming havens.
The Itch for the Italian Market
With licensing requirements becoming more rigorous, the market may witness a shrinkage in the number of operators. However, this contraction could lead to a more competitive, safe, and profitable landscape for those debating the barriers to entry wisely. By diving into the Italian market now, companies will seize the opportunity to establish their presence before competition diminishes and take advantage of consolidation and the exodus of players from land-based gaming to the digital realm.
Although the Italian market does face obstacles like an advertising ban (Decreto Dignità of 2018), taxes (24-25% on Gross Gaming Revenue [GGR]), and stringent anti-money laundering measures, the growing demand for mobile betting, esports, and intertwining land-based and digital channels opens a plethora of opportunities for operators.
Regulation and the Gang that Couldn't Shoot Straight
The gaming sector in Italy is supervised by the Agenzia delle Dogane e dei Monopoli (ADM), situated under the Ministry of Economy and Finance (MEF). The ADM sets the licensing process, monitors normative compliance, collects taxes, and regulates gaming activities. If need be, it engages in a cross-country operation, as the MEF establishes macroeconomic objectives and lays down fiscal and regulatory policies to ensure harmony with EU norms. The new regulatory framework is being monitored not only by the ADM but also by the European Commission, which has initiated a public consultation to evaluate the impact of the new technical rules on the sector.
The (Not-So-Secret) Ingredients for Italian Success
To secure a legal position and navigate Italy's complex gaming landscape, companies must adhere to a series of legal, technical, and financial requirements:
- Experience: At least two years of operation in the European Economic Area (EEA) and having generated revenues of at least €3 million in the two years prior to the application.
- Financial Solvency: Payment of a €7 million license fee for nine years, coupled with annual fees and a guarantee fund to cover risks and fiscal obligations.
- Physical Presence: Establish a commercial entity in Italy and host servers within the EEA while ensuring connection with the ADM control systems.
- Regulatory Compliance: Implement responsible gaming measures (self-exclusion, deposit limits, access blocking), AML policies (anti-money laundering), and comply with the advertising ban.
- Corporate Structure: Only anonymous societies with a registered office in the EEA can participate, and must disclose detailed information about the owners and their capital structure.
- Technical Tests: The software must be subjected to tests and certified to guarantee the innovation and security of the platform.
Calling All Big Kahunas: The Power of Synergy
By collaborating with local partners and tapping into aggregation platforms, companies can ensure a smooth integration and adherence to regulatory requirements, while offering content that resonates with Italian gamers.
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- Greentube's partnership with Betfair signals a shift in the Italian gaming industry, as they aim to meet the region's craving for advanced content.
- The upcoming regulatory framework in Italy will foster a more competitive, safer, and more profitable market for quality players, as revenue is projected to exceed €5.5 billion by 2025.
- Companies planning to enter the Italian market should prioritize experience, financial stability, regulatory compliance, and a strong technical platform for success.
- As the gaming sector in Italy is monitored by the ADM and the European Commission, operators must adhere to stringent standards and requirements.
- To establish a legal presence, companies may find synergy through collaboration with local partners and aggregation platforms, ensuring a smooth integration and regulatory compliance.
