Italy's land-based gambling reform remains mired in political uncertainty, causing industry leaders to express concerns over the implications of courts setting the rules instead of lawmakers. This issue was highlighted during the panel discussion titled "Beyond the Reform: The New Italian Gaming Landscape," held on September 30 during the SBC Summit in Lisbon.
Quirino Mancini, co-founder and executive committee member of the International Masters of Gaming Law (IMGL), remarked that he sees no potential for the current government to tackle the reorganization of the retail gambling network prior to 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," Mancini stated. He emphasized the sensitivity surrounding gambling issues as a significant barrier to reform.
The delay is concerning given that retail gambling represents around three-quarters of Italy's gambling market, valued at over €21 billion. While reforms are set for the online sector, effective November 13, land-based reforms have yet to start. Mancini noted that discussions about reorganizing the network began with the 2016 Stability Law, indicating it has been unresolved for about ten years. The technical framework for reform is largely settled, where the central government dictates the network's dimensions, density, operating hours, and proximity to sensitive locations, while regional and municipal authorities would manage implementation. "The issue stands in political terms much more than in organisational, logistic or regulatory terms," Mancini added.
On the same day, a ruling from the Council of State addressed the operation of Italy's top-up outlets, known as PVRs, which are facilities allowing players to fund their online gaming accounts. The court upheld the €100 weekly limit on cash and non-traceable top-ups that has been effective since May and reiterated the ban on withdrawals at PVRs. However, it did overturn a blanket prohibition on internet-connected devices within these shops, deeming it excessive.
In response to the ruling, Mancini commented, "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."
The ongoing uncertainty has significant consequences for businesses operating online and in retail. Davide Diodato, CEO of Novomatic-owned HBG Online, explained the disparity between online and retail licensing, stating that while online licenses span 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," he remarked. This confusion particularly affects small shopkeepers who are left wondering about their future. "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," Diodato added.
Marco Tiso, managing director of Sisal, lamented that retail operations are still governed by rules established two decades ago, calling this a "missed opportunity." He pointed out that consumers encounter varying products, payouts, and promotions depending on whether they are gambling online or in-store.
On the online side, Marco Castaldo, CEO of Microgame, described the current regulatory environment as "hyper-regulation," which presents a level of complexity that he believes other regulated markets will emulate in the future. He noted that this hyper-regulation is resulting in quicker market consolidation, with the top five companies currently making up 85% of gross gaming revenue; this figure is expected to increase.
Fabio Bufalini, country director for Stake Italy, voiced his concerns about the competitive disadvantages licensed operators face due to restrictions on advertising bonuses, while unregulated sites freely promote on platforms like social media. "That’s unfair competition, to be clear," he asserted.
Panelists agreed the outlook for online gaming is strong, with market penetration still growing in comparison to northern European nations. However, they see retail's role evolving rather than diminishing. Castaldo emphasized the enduring value of personal interaction and the physical gaming experience, suggesting that operators must consider how to blend this with digital elements. Tiso expressed the vision of retail shops transitioning from mere sales points to service-oriented environments, enhancing customer interaction and fostering community.
Earlier in the discussion, Tiso had predicted a reversal of the trend where players migrate from physical shops to online platforms. He foresaw that online services would begin directing customers back to retail locations for the social engagement that online gambling lacks.
Diodato highlighted the ongoing generational transition in how players engage with the gambling industry. For many years, valuable participants entered the market through physical locations, but younger players are more likely to start their experiences online through engaging content or community connections. He suggested that retail operations could shift from serving as entry points to playing crucial roles in customer retention.
Even Bufalini, whose focus is solely online, acknowledged that the future of retail need not conflict with digital gaming, urging for a holistic approach that integrates both sectors. Diodato noted that the retail domain retains a unique advantage over illegal operations, given its deep community ties. "They can copy our games, but they can’t have the bond with the territory that we have."
