Italy's efforts to reform its retail gambling sector have been stalled, leaving judges to shape the regulations instead of lawmakers, as industry leaders discussed 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 doubt about any significant governmental action before Italy's upcoming 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 said, pointing out the sensitive nature of gambling issues as a reason for the current standstill.
This deadlock is troubling, given that retail gambling constitutes about three-quarters of Italy's gambling market, valued at over €21 billion. In contrast, while the online segment undergoes major changes with new regulations set to take effect on November 13, reforms for the land-based sector remain at a standstill. Mancini noted that the push for retail network reorganization dates back to the 2016 Stability Law, marking a wait of almost ten years. He indicated that while a technical framework, which involves central government regulation of network size and local implementation, is largely accepted, political hindrances remain significant.
The panel occurred just as the Council of State issued a ruling concerning top-up outlets, also known as PVRs, where players deposit cash for online gaming accounts. The court upheld a €100 weekly maximum for cash and non-traceable top-ups, effective since May, and maintained the prohibition on withdrawals at these outlets. However, it overturned a full ban on internet-connected devices within PVRs as "disproportionate."
In response, Mancini remarked, "Wherever there is a vacuum in legislative power, the judicial one steps in, and that becomes the regulation, which is never a good thing." He commented with respect to the judicial system, stating that judges often lack a clear understanding of how the gambling industry functions.
The prevailing uncertainty continues to affect operators who are engaged in both online and retail operations. Davide Diodato, CEO of Novomatic-owned HBG Online, described the challenges posed by overlapping licensing timelines: online licenses expire after nine years, while 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," he said.
This unpredictable environment is particularly challenging for small retailers within the network. "Every year, they ask us what’s going to happen next year," Diodato said, commenting on the investment hesitations they face. Sisal’s managing director Marco Tiso criticized the outdated regulations governing retail, stating they were largely formulated 20 years ago and labeling the situation a "missed opportunity." He pointed out that players encounter varying products and promotions based on the gaming channel they choose.
On the online side, Marco Castaldo, CEO of Microgame, described Italy's new regulatory framework as "hyper-regulation," pointing out its complexity and the likelihood that other regulated markets will evolve similarly in the future. He observed that this situation is accelerating market consolidation. "Today, the top five account for 85% of market GGR, and that’s going to go up," predicted Castaldo, suggesting that larger players will increasingly acquire smaller operators.
Fabio Bufalini, country director for Stake Italy, highlighted another disadvantage faced by licensed operators: their inability to advertise bonuses while unregulated sites enjoy the freedom to market on social media. He called it "unfair competition."
Panel participants acknowledged that while the outlook for online gambling seems promising, with penetration still lagging behind some Northern European markets, the role of retail gambling is shifting rather than diminishing. Castaldo noted the enduring importance of personal interaction and physical presence for players, positing that each operator must contemplate how they integrate digital offerings into their retail strategies. Tiso envisions shops evolving from mere points of sale to hubs of assistance and community engagement.
He suggested that retailers could still attract new customers through casino-style offerings, provided regulations support innovation. Tiso also indicated a potential reversal in the traditional flow of players from retail to online, predicting a future where online platforms gradually direct customers to physical outlets for a more communal experience.
Diodato reflected on generational shifts in player engagement, stating that while older demographics often transitioned to online accounts via physical venues, younger players are more likely to connect with the industry through online content and communities. He argued that retail could become a valuable tool for customer retention rather than merely an entry point.
Even Bufalini, whose operations are exclusively online, suggested that retail and online should not be seen as opposing forces; rather, they should be considered as part of a cohesive ecosystem that benefits players. Diodato emphasized the unique value of retail locations, noting that while illegal markets might mimic game offerings, they cannot replicate the local bonds that licensed operators maintain with their communities.
