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New Era for Italian Online Gambling as New Licenses Activated

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The Italian gaming landscape has seen a monumental shift as the Customs and Monopolies Agency (ADM) recently activated 52 new online gambling licenses. This substantial move signals the onset of a fresh chapter for Italy, home to one of Europe’s largest gambling markets. The activation of these licenses has prompted the closure of numerous websites that previously operated as skins. Under the new regulations, each operator is confined to running just one domain per license, reducing the total number of active operators to 46 in Italy’s regulated online gambling market. The hefty licenses, priced at €7 million each, have generated a significant €364 million for the Italian state.

This new regime brings with it stringent compliance requirements and enhanced player protections. Notably, players must register using Italy’s SPID digital ID or an electronic ID card, ensuring a higher level of security and accountability. In 2025, Italy’s online gambling industry saw a staggering €5 billion in wagers, positioning it as the second-largest market in Europe. With further reforms anticipated in 2026, aimed at overhauling the land-based gambling sector and reconsidering the ban on gambling advertising and sponsorship, the landscape is set for further transformation.

Yet, amidst these changes, questions arise about the impact on market dynamics and consumer behavior. Some industry analysts suggest that the tightened regulations might inadvertently drive players towards unlicensed platforms due to perceived restrictions within the regulated market. Others argue that the focus on tighter compliance could enhance the integrity and attractiveness of the legal market, ultimately benefiting both the government and consumers.

In another significant development, Andrew Lyman, the Gibraltar gambling commissioner, has openly criticized the UK government’s proposed gambling tax increase, asserting that the industry cannot effortlessly absorb a substantial tax hike without repercussions. He warns that such a move could stifle growth, reduce tax yields, and inflict long-term damage on the sector. As Chancellor Rachel Reeves prepares to announce the tax increase in her Autumn Budget on November 26, supported by the Treasury Committee and several MPs, the industry watches closely. While online gambling yields have risen, traditional retail betting locations are experiencing dwindling revenues. Lyman underscores the importance of striking a balance to avoid detrimental outcomes for the gambling sector.

Contrasting perspectives emerge from France, where Casinos de France stands firmly against the legalization of online gambling. The trade body argues that such a move could precipitate significant job losses and diminish state revenue, potentially resulting in a €546 million loss to the public purse and the closure of numerous land-based venues. President Grégory Rabuel dismisses concerns about revenue losses from unlicensed online casinos, insisting that the impact on local employment and cultural life would be severe. He argues that land-based casinos provide a safer environment and contribute substantially to taxes, social programs, and local authorities. The association also highlights the negative outcomes seen in other European nations that have legalized online gambling. Despite this opposition, the French government is contemplating reintroducing plans to regulate online casinos, a choice that could reshape the French gambling sector.

Meanwhile, in the UK, Prime Minister Sir Keir Starmer has hinted at a potential tax increase on the gambling sector, supported by Labour MPs as part of a strategy to alleviate child poverty by removing the two-child benefit cap. Former Prime Minister Gordon Brown backs this measure, asserting that gambling operators are well-positioned to bear the additional tax burden, with the potential to generate £3.2 billion. The proposal includes raising duties on remote gaming, slot machines, and general betting. However, industry experts caution that this could drive consumers toward the unlicensed market, citing the Netherlands’ experience where a tax increase led to reduced tax revenues.

Bulgaria is also on the brink of a significant fiscal adjustment. The government has surreptitiously included a gambling tax increase from 20% to 25% in its amended 2026 budget, aiming to address a €3.86 billion fiscal shortfall. This decision aligns with similar moves in other European countries such as Romania, France, and the Netherlands. Bulgaria’s tax hike coincides with its preparations to enter the Eurozone on January 1. Additionally, the Ministries of Finance and Healthcare are proposing new regulations for online gambling, including session time limits and loss caps to foster responsible gaming. Players will be mandated to take a 15-minute break before resuming play, complemented by stricter self-exclusion periods.

Amidst these regulatory changes, the UK Gambling Commission acknowledges the difficulty in accurately gauging the size of the unlicensed gambling market due to limited data availability. Director Ben Haden highlights the need for robust statistics and the challenges of estimating illegal gambling expenditures. Despite these obstacles, efforts persist to understand and counteract illegal activities, focusing on trends and operator feedback. Although no sustained growth in engagement with illegal sites has been observed, the Commission remains vigilant, emphasizing collaboration and risk-based strategies to combat illegal gambling while prioritizing consumer protection.