Italy’s retail gambling reform is currently stalled, leaving the responsibility of establishing rules in the hands of the judiciary instead of elected officials. This point was raised by industry leaders at the SBC Summit in Lisbon on September 30.
Quirino Mancini, co-founder and executive committee member of the International Masters of Gaming Law (IMGL), expressed skepticism about any government making significant moves towards reorganization before 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 as a reason for the current impasse.
The situation is significant because retail gambling represents approximately 75% of Italy’s gambling market, which exceeds €21 billion. While the online segment is undergoing substantial reforms with new regulations set to take effect on November 13, the necessary changes for land-based operations remain uninitiated.
Mancini pointed out that the drive for restructuring dates back to the 2016 Stability Law, indicating it has been on the table for nearly a decade. According to him, the technical framework for this reorganization is mostly established, giving the central government authority over network size, density, operational hours, and distances from sensitive locations, while regional and municipal bodies handle implementation. "The issue stands in political terms much more than in organisational, logistic or regulatory terms," he remarked.
On the same day as the panel discussion, the Council of State released a ruling concerning Italy's cash top-up outlets, known as PVRs, where players can load funds into their online gaming accounts. The court upheld a €100 weekly cap on cash and non-traceable top-ups, a rule in place since May, as well as a ban on withdrawals at these locations. However, it rejected a blanket ban on internet-connected devices at PVRs, deeming such a measure disproportionate.
Responding to this development, Mancini noted, “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 managing both online and retail gambling face continual challenges due to the inconsistent structures. Davide Diodato, CEO of HBG Online, highlighted the disparity: while online licenses are issued for nine years, retail concessions are renewed 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,” he explained.
The uncertainty is particularly concerning for small retailers within the network. Diodato shared that shopkeepers are often anxious about future regulations: “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, managing director of Sisal, described the existing retail framework as outdated, still rooted in regulations designed two decades prior, which he labeled a “missed opportunity.” He pointed out that consumers experience inconsistencies in products, payouts, and promotions based on the gambling channel.
On the online side, Marco Castaldo, CEO of Microgame, characterized Italy’s regulatory environment as “hyper-regulation” filled with complexities that he claims many other regulated markets will adopt soon. He predicts that this environment will lead to accelerated consolidation, stating that the top five companies currently account for 85% of the market’s gross gaming revenue, a concentration he expects to increase.
Castaldo noted that as competition rises, successful market leaders will likely acquire smaller rivals, while lesser-performing operators may need to merge to survive.
Fabio Bufalini, country director of Stake Italy, highlighted a competitive disadvantage for licensed operators, who face restrictions on advertising bonuses, in contrast to unregulated competitors who can promote freely on social media. He stated, “That’s unfair competition, to be clear.”
Panelists largely agreed on the promising outlook for online gambling, noting that its market penetration still lags behind northern European countries. However, they argued that retail still retains significant value rather than diminishing in importance. Castaldo mentioned, “There will always be value in a face-to-face experience and physical involvement for the player,” urging operators to consider how digital innovation fits into that experience.
Tiso predicted a transformation for retail shops, suggesting they could evolve from mere points of sale to centers for assistance and community interaction, while providing opportunities to attract new customers to casino-style products—assuming regulatory certifications do not hinder progress.
Earlier in the discussion, Tiso suggested a reversal might be on the horizon, where online platforms would send customers to retail locations to complete their experiences with the social elements missing in a digital environment.
Diodato noted how younger generations are changing the landscape, with many of today’s top players initially connecting to online accounts through physical shops. In contrast, younger individuals may start their journey with online content and community engagement. As a result, retail operations could transition from being entry points to serving as tools for customer retention.
Even Bufalini, whose business focuses exclusively on online operations, recognized that retail and online offerings should not be treated as opposing forces. He emphasized the importance of treating the ecosystem as interconnected.
Diodato also noted that retail has an advantage that illegal gambling markets cannot replicate: “They can copy our games. But they can’t have the bond with the territory that we have.”
