Italy's retail gambling reform is currently stalled in political uncertainty, compelling judges rather than lawmakers to determine the rules governing the industry, as highlighted by industry leaders during the SBC Summit in Lisbon last week.
During the panel discussion titled “Beyond the Reform: The New Italian Gaming Landscape,” Quirino Mancini, co-founder of the International Masters of Gaming Law (IMGL), expressed skepticism about any government addressing the restructuring of the retail gambling network 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. "Gambling is a very sensitive issue, and that is the reason why, in my view, we are where we are."
The need for reform is pressing, as the retail sector accounts for nearly three-quarters of Italy's gambling market, valued at over €21 billion. While the online segment is undergoing significant changes, new regulations set to take effect on 13 November do not extend to the land-based sector, which remains in limbo.
Mancini noted that the first discussions about reorganizing the retail network date back to the 2016 Stability Law, "a good ten years ago." He explained that the technical aspects of reform are largely agreed upon, with the central government determining network size, density, operating hours, and proximity to sensitive areas, while regional and local authorities handle practical implementation. "The issue stands in political terms much more than in organisational, logistic or regulatory terms," he added.
The panel discussion coincided with a recent ruling from the Council of State regarding Italy's top-up outlets, known as PVRs, where players can load cash into their online gaming accounts. The court confirmed the €100 weekly limit on cash and non-traceable top-ups that has been in place since May and upheld the prohibition on withdrawals at these outlets. However, it overturned a blanket ban on internet-connected devices in these establishments, deeming it excessive.
Reacting to the ruling, Mancini remarked, “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 ambiguity surrounding regulations presents significant challenges for operators managing both online and retail sectors. Davide Diodato, CEO of Novomatic-owned HBG Online, emphasized the discrepancies in regulatory timelines, noting that while online licenses are structured over a nine-year period, 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."
This uncertainty weighs heavily on the small shopkeepers within the retail network. Diodato pointed out, "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, critiqued the existing rules governing retail gambling, stating they were primarily shaped two decades ago, representing a “missed opportunity.” He noted varying products, payouts, and promotions across channels, resulting in an inconsistent experience for players.
On the online front, Marco Castaldo, CEO of Microgame, described the current regulations as "hyper-regulation" with an unprecedented level of complexity, predicting that several regulated markets could emulate Italy’s approach in the coming years. He highlighted the accelerated consolidation in the market, noting that the top five operators already account for 85% of market gross gaming revenue (GGR) and forecasted this concentration would continue to rise.
Fabio Bufalini, country director for Stake Italy, expressed concerns that licensed operators are at a disadvantage by being unable to advertise bonuses while unregulated sites operate freely on social media, resulting in "unfair competition, to be clear."
The panelists agreed on the promising outlook for online gambling, with penetration still lagging behind that of some northern European markets. However, a shift in retail's role was noted, rather than a decline. Castaldo posited that a focus on enhancing the face-to-face experience and physical involvement for players would remain vital.
Tiso envisaged a transformation of retail from mere points of sale to hubs of assistance and interaction, emphasizing the potential for bringing new customers into casino-style products, provided that the certification processes are refined to foster innovation.
Earlier in the discussion, Tiso predicted a reversal of the usual flow of players migrating from physical shops to online platforms, suggesting that online might soon direct customers back to retail locations for social and community interactions that are missing in digital formats.
Diodato noted a generational shift, observing that younger players are beginning their engagement with the industry predominantly online, through content and community rather than retail. Retail, he argued, might transition from a mere entry point to a crucial retention resource.
Even Bufalini, whose operations are solely online, acknowledged the interdependence of both sectors, advocating that regulators and industry stakeholders recognize the gambling ecosystem as a cohesive whole. Diodato concluded by emphasizing a unique advantage of retail that cannot be replicated by the illegal market: the deep connection with local communities.
