Italy prepares for massive liberalization of gambling, online gaming policy

Less than ten years ago in Italy, slot machines were illegal, online betting and gaming hardly existed outside of overseas bookmakers trading “illegally” and the country had one of the most prohibitive regimes in Europe. However with the Comunitaria law – the latest piece of legislation aimed at liberalising the sector – returning unscathed from its statis with the European Commission on March 22, and two days later the decree for activating cash poker and online casino entering the statute book, the final pieces of the new liberal regime that will bring in billions of euros in tax are falling into place.

Operators will be able to make a request to the Italy gaming authorities AAMS on or around April 7 or 8 depending on the effects of Easter on the timetable, and will then need to have their gaming platforms and individual game formats approved.

AAMS is drawing up a list of accredited testing companies, and those operators whose products and RNGs have already been given the seal of approval by agencies on the list will find the process less time-consuming. The first operators are expected to be able to offer cash poker during April.

Still, with the many individual games on offer in online casinos all needing to be approved by the authorities it is not likely that Italian punters will be playing online slots or roulette much before June.According to Italian management consultancy MAG, cash poker could be worth as much as €5 billion this year with casino games producing spending of €3 billion, and this is with both products not expected to be fully live before the summer.

However, with a minimum return to punters from poker and casino games of 90% – and many operators expected to keep rake (and gaming margins) well below the 10% limit – it will be the revenues rather than turnover that will be the most important performance indicators.

Nevertheless, with a maximum €1000 limit set for the amount of funds that can be taken to a virtual gaming table at any one time, and tournament entries limited to €250, there will still be some difference between the products on offer on .com sites and those on the official Italian sites.

More intriguingly still, the change from the tournament-only format which, nevertheless generated a decent turnover of over €2 billion last year, to cash games also appears to be attracting notable absentees from the market like Everest and Full Tilt, both of which have expressed interest in entering the Italian market officially.

Similarly many online casino companies operating from offshore are also expected to apply for licences in order to trade “legally”, given the relatively light taxation of 20% of margin payable on casino games and cash poker. The turnover tax of 3% on tournament poker will remain the same.