Italy’s online gambling industry has been grappling with a significant challenge in the thriving black market. Recent reports have shed light on the magnitude of this issue, estimating that Italians place a staggering €25 billion in bets annually with unlicensed operators. Among the total amount wagered, a substantial €18.5 billion is attributed to unlicensed gambling websites.
The European Gaming & Betting Association (EGBA) has voiced concerns about the impact of this black market on the regulated online gambling sector and has called for a revision of the Dignity Decree, a law that banned gambling advertising in Italy.
The EGBA’s estimation reveals that nearly €1 billion of online gross gaming revenue is lost to black market websites in Italy each year. To put this into perspective, this amount is equivalent to the combined regulated online gambling revenue of eight other European Union member states. The magnitude of Italy’s black market is undoubtedly concerning, and the EGBA attributes part of the blame to the Dignity Decree.
Enforced in 2018, the Dignity Decree imposed a blanket ban on gambling advertising across Italian media and sports sponsorships. While its intended purpose may have been to protect consumers, the EGBA argues that this move has inadvertently favored black market operators, as licensed operators are limited in their ability to promote their services. The EGBA emphasizes that without sufficient advertising, enforcement actions against black market operators are not as effective.
According to SBC News, Maarten Haijer, Secretary-General of the EGBA, highlighted the impact of Italy’s strict advertising regime for licensed gambling companies, stating, “The country’s ban on advertising for licensed gambling operators is clearly favoring the black market.”
The EGBA believes that the government needs to revise its advertising rules to ensure that Italian citizens are well-informed about licensed gambling websites.
Italy’s Customs and Monopolies Agency (ADM) has been actively working to combat the black market by blocking unlicensed gambling websites. In the current year alone, the ADM has already blocked over 9,800 such websites, with an additional 400 blocked recently. These figures highlight the growing scale of black-market operators targeting Italian consumers.
Recognizing the need for comprehensive measures, the Italian government has initiated a reorganization of its gambling laws. In August, its parliament approved “phase-1” changes aimed at resolving licensing disputes, harmonizing tax duties and enhancing player protections in retail venues. However, the government has not indicated any intention to review or amend the Dignity Decree.
Per SBC, Haijer emphasized the need for a revision of the advertising rules for gambling in Italy.
“Without a sufficient level of advertising, it is evident that enforcement action against black market operators is not sufficient, and that the government needs to revise its advertising rules for gambling to ensure Italian citizens are well-informed about the licensed websites in the country.” Haijer said.
While the Dignity Decree remains unchanged, the ADM continues its efforts to address various aspects of the gambling industry. Two decrees on sports betting are currently being developed to resolve issues with operators regarding “palpable errors” and bonus management. The first decree will introduce a new procedure for operators to report mistakes and market corrections, while the second focuses on defining terms and conditions for bonus management.
