Operators face a major uphill battle in entering and making significant headway within the Italian online ecosystem when sweeping changes are ushered into the country’s digital gaming regime, predicts DailySpin CEO Eric Stööp.
The comparison site, a self-titled one-stop shop for players, chose the nation as a starting point from which to springboard to a number of further carefully selected regions during the coming years.
However, the company’s motherland could be set to hamper the market’s overall competitive nature, which, in turn, could well trickle down to have a detrimental effect on players.
In the final of a three-part series that has spanned the SBC media network, Stööp established the story behind, and premise of, DailySpin before delving into the nitty and gritty details of the headline issues.
“We are a team of five people and we’ve known each other for over 20 years,” he explains. “We have previously collaborated on several successful projects within the same space.
“With less competition the players usually suffer in the end as the offering from the operators will be less compelling”
“Prior to that, we all have extensive experience working together across various igaming companies. Given the strong trust we’ve built in each other’s abilities, it was a natural progression for us to launch another venture in a field we are well-acquainted with.”
Regulatory alterations have become commonplace across the global gambling landscape, with Italy having caused much controversy due to previously implemented adjustments. Most notably, a gambling advertisement ban that was introduced from 2019.
However, those leading the country’s online gambling licensing system are to herald a new era by initiating a number of additional changes that could deliver a further blow to the industry.
Stööp outlines: “I think the biggest change is that it will become more expensive to operate a licensed operator in Italy, and also all the skins of the so called casino online AAMS operated under the same license will be removed.
“This will likely lead to consolidation through M&A. With less competition the players usually suffer in the end as the offering from the operators will be less compelling.
“Less return to players on casino games and odds and through promotions and loyalty. Product innovation will be less important as the competitive landscape fades.”
“We have noticed a trend in recent years that the unregulated market is growing”
In addition, the DailySpin CEO also points to “quite substantial enhancements” regarding tech infrastructure, while systems will also require regulatory verification, and testing labs must be accredited by the Italian government.
This, Stööp continues, could see operators turn to third party solutions for tasks and systems that were previously managed in house.
However, despite noting an expectation that the fresh requirements will not prove to be a major obstacle, an inevitable increase in IT and associated costs could lead to small and medium sized enterprises being driven out of the market.
“Italy was one the first countries in Europe to regulate their online gambling market, and the channelisation from the unregulated market has been very good compared to expectations,” he says.
“We have noticed a trend in recent years that the unregulated market is growing. There have been mentions about bonus restrictions and more responsible gambling measures in the new regime.
“I really hope that the regulators don’t go too far with certain player restrictions for bonuses and limits as we are certain that this will just supercharge the outflow to unregulated operators.”
“There are also way too many easy political points being scored by just implementing measures that have not been thought through”
Subsequently, this leads into another hot topic that has evident across numerous jurisdictions around the world during recent times. That being the black market.
Issues in clamping down on a rising time of business that operate illegally have been increasingly raised, with Stööp firmly pointing the finger towards governments and regulators in failing to address these matters.
“There are also way too many easy political points being scored by just implementing measures that have not been thought through to either increase the state budget or to score points with the public as gambling in general is still considered a moral grayzone,” he comments.
“It is also way too easy for unregulated and illegal casinos to accept players in the regulated landscape, as way too little is done to close them down or prevent them from accepting new players in the specific jurisdiction.”
In assessing how integral businesses such as DailySpin are in ensuring that players understand where the legal and safest options to wager can be found, Stööp confesses to a certain degree of understanding as to why the black market is accessed.
“We always try to educate our readers on the pros and cons of regulated vs unregulated casinos,” he says.
“We only wish that regulators take into consideration the player experience when they operate the framework going forward”
“But I can understand that players turn to unregulated casinos in certain markets as the regulator has done a very poor job in implementing measures that don’t interfere with the player experience.”
This brought the conversation towards its inevitable conclusion, with the issue of responsible gaming taking stage as DailySpin’s approach to ensuring such measures are correctly implemented and effective was addressed.
Despite stressing the importance of the topic at hand, it is suggested that the major problem lies in regulatory decisions to implement measures that interfere with the experience of players far too much.
“This drives players into the hands of the unregulated market as they want to escape the implications of their player experience, and we end up with a lose-lose scenario for the regulator and the player,” Stööp concludes.
“DailySpin always ensures compliance with the framework set forward by the regulator. We only wish that regulators take into consideration the player experience when they operate the framework going forward, as the balance is very important to ensure as great of a channelisation into the regulated environment as possible.”
The first and second parts of the DailySpin series can be found on SBC News and SlotBeats.
