It has been a generation since Italy updated its gambling laws, which date back to before online gaming became such a big factor in the sector.
SBC News reported July 18 that the country’s Chamber of Deputies has approved the “Tax Delegation Law” which includes an extensive section on gambling that will begin the process of “industry reorganization.” The July 12 vote was 182 to 97. The law had been approved previously by the Council of Ministers.
The bill has been sent to the Senate for its approval, which is expected to be pro forma.
This is the fourth time in two decades that lawmakers have attempted to reform the Italian gaming market. Each time the attempt failed due to political wrangling.
Deputy Minister for the Economy Maurizio Leo said the government would like to pass the bill before the lawmakers take their summer break in August. Leo headed the group that drafted the gambling reforms designed to modernize the Italian gaming market.
Once the legislation is approved, the government expects it will take up to 24 months to draft the implementation of decree reforms, and then another year to create a new licensing process. That would include the process for tender notices for gambling concessions. All existing concessions have been extended to December 31, 2024.
The bill stipulates that “reorganization of the current provisions on public gaming” will be done “without prejudice to the organizational model of public games based on the concession and authorization regime.”
Roberto Alesse, managing director of the Agency of Customs and Monopolies (ADM) told SBC News that the bill presented an “extraordinary legislative opportunity” to deal with a number of issues affecting the industry and citizens and “the operation of the gambling business to improve player protection and standards.”
That includes upgrading protections for gambling addicts. The law includes caps on stakes and winnings, required training on recognizing someone with a gambling problem, strengthening self-exclusion programs, including a national register, and a ban on betting on sports involving minors under 18. The law will also include a provision for fighting illegal and offshore gambling operations.
One problem Alesse hopes to address is that Italy’s regions have conflicting laws. He said the government will be sensitive to local concerns about protecting vulnerable groups. It will seek solutions that are sensitive to local laws in locating gaming concessions. Gaming venues must be at least 200 meters away from towns of 5,000 or fewer residents. For cities above 5,000 the minimum distance is 300 meters.
Alesse expects the process to combine state concessions and police approval with opening and closing times that are sensitive to local preferences. Local police can create time of up to six hours a day when the facility must be closed. They must maintain a minimum distance from schools, hospitals, nurseries, ATMs, money transfer shops and pawn shops.
The gaming sector employs about 150,000 workers and generates about €11 billion ($12 billion) in taxes annually. It is considered the second largest gaming market in Europe. In spite of gaming outlets being closed in 2020 and 2021 due to the Covid pandemic, it has grown since the casinos reopened. Last year gross gaming revenue (GGR) grew 31 percent, to €19.6 billion.
The industry has indicated that it supports the reform efforts that it sees as contributing to market stability. However, it will still face uncertainty until the legislative decrees are made part of the tax system.
According to Casino.org that uncertainty is complicated by ambiguous statements such as: “Certification of each device, with gradual transition, taking into account the amortization period of the investments made, to devices that allow gaming only from a remote environment, forming part of non-alterable gaming systems.” This implies that all slot machines might be linked to a central control.
