Italy's efforts to reform land-based gambling have stalled, leaving the responsibility of setting regulations to the judiciary instead of elected officials. This warning was highlighted at the SBC Summit held in Lisbon last week during a panel discussion titled "Beyond the Reform: The New Italian Gaming Landscape" on September 30, where industry experts gathered to discuss the implications of this political impasse.
Quirino Mancini, who is the co-founder and executive committee member of the International Masters of Gaming Law (IMGL), expressed skepticism about any government addressing the reorganization of Italy’s retail gambling framework ahead of the next general election. "I would struggle to imagine that, in the year before elections, any government, no matter the colour, would seriously address the reorganisation," he stated, emphasizing the sensitivity surrounding gambling issues as a defining factor in the current stalemate.
This enduring deadlock is troubling, particularly as retail gambling represents approximately three-quarters of Italy's gambling market, which is valued at over €21 billion. While significant changes are underway in the online gambling sector, with new regulations coming into effect on November 13, reforms regarding land-based gambling have yet to take place.
Mancini pointed out that discussions about reorganizing the retail gambling network date back to the 2016 Stability Law, noting it has been a decade since initial proposals surfaced. He explained that although the technical framework for reform is largely agreed upon—where the central government determines factors such as network size and distances from sensitive sites—the implementation has stalled.
On the same day, the Council of State released a ruling concerning Italy's PVRs, or top-up outlets, where players can load cash onto online gaming accounts. The ruling maintained the €100 weekly cap on these transactions and upheld the ban on withdrawals, but it overturned a prohibition on internet-connected devices in these establishments, deeming it excessive.
Mancini commented on this judicial void, remarking, "Wherever there is a vacuum in the legislative power, the judicial one steps in, and that becomes the regulation, which is never a good thing. With all due respect to the magistrates, most of the time they do not know exactly how our industry works."
Operators caught between online and retail sectors face unique daily challenges. Davide Diodato, CEO of HBG Online, a Novomatic subsidiary, highlighted the confusion caused by differing timelines, explaining that while online licenses are renewed every nine years, retail concessions are extended annually. "You don’t fly aircraft with two flight plans and different information. But it’s actually what we have to do every day. So it’s pretty tough."
Small retailers in the gambling network also struggle under the uncertainty. Diodato remarked, "Every year, they ask us what’s going to happen next year. If you put yourself in their shoes, it’s pretty hard to invest, to hire people."
Marco Tiso, the managing director of Sisal, criticized the outdated regulations governing retail gambling, which he said were formed two decades ago. He described the situation as a lost opportunity for innovation, noting that players encounter varying products and promotions based on the gambling channel used.
On the online front, Microgame CEO Marco Castaldo characterized Italy's newly implemented regulations as overly complex, calling it "hyper-regulation". He suggested that this trend may soon appear in many other regulated markets. Castaldo projected a rapid consolidation within the market, noting that the top five operators currently account for 85% of the market's gross gaming revenue, a figure he expects to increase.
Fabio Bufalini, country director for Stake Italy, expressed concern regarding the advertising limitations licensed operators face, as unregulated sites maintain the freedom to promote themselves on social media, which he described as "unfair competition, to be clear."
Despite the challenges, panelists agreed that the online sector had strong growth potential, while emphasizing that retail gambling's role is evolving rather than diminishing. Castaldo stressed that the intrinsic value of face-to-face interactions would remain, proposing that operators consider how digital experiences can complement physical venues.
Tiso suggested that retail shops could transition into service-oriented spaces, redefined as venues for assistance and community engagement. He argued this shift could enable the introduction of new customers to casino-type products through a streamlined certification process which does not hinder progressive developments.
Reflecting on the future dynamics between online and retail gambling, Tiso predicted a reversal where online platforms drive customers back to retail locations, where players can engage socially in ways online offerings cannot replicate.
Diodato noted a generational shift in player engagement, stating that for younger audiences, initial interactions with gaming will increasingly occur through online channels rather than shops. He proposed that retail could transform from being merely an entry point for new players to a valuable tool for customer retention.
Even those like Bufalini, whose focus is entirely online, acknowledged that the future of retail and online gambling should not be seen as oppositional. He called for a holistic approach from both the industry and regulators regarding the entire gambling ecosystem. Diodato added that retail holds a unique bond with local communities that illegal operations cannot replicate, stating, "They can copy our games, but they can’t have the bond with the territory that we have."
