Italy Set For Steep Decline Of Gambling Operators Amid Reforms

Significant drop of operators

It is expected that the number of licenses issued could be as low as 33, compared to the current 81. In 2018, there were 93 applications, which led to 81 licenses being issued. This time around, it is believed there have been around 50 applications submitted.

Previously, licenses cost only €250,000 ($287,000), which allowed smaller operators access to Europe’s largest gambling market. The industry is valued at over €5 billion ($6.91 billion), but the high fee to obtain a license has priced many out of the market.

The tax on fixed odds horse racing betting has fallen significantly, however, with operators now paying 20.5% compared to the previous rate of 43%. This is an attempt to revive the industry, which has been struggling.

Large operators to dominate the market

Torabassi commented, “There are very small companies that were able to operate in a market that was [worth] €4 billion at the time, now €5 billion, with an investment of €250,000,”

Flutter recently acquired Snai in Italy, adding to its presence in the country through Sisal. The gambling giant is expected to control around 30% of the market alone, with other large operators such as Lottomatica, Entain, and bet365 expected to strengthen their positions.

“Post-tender, we expect large, integrated, multi-product, multi-channel companies to dominate the market,” Tirabassi explained.

“The reform has brought the price of the licence to a normal level,” he added. “The previous price – how cheap it was – that was the abnormal part. Add to that the stricter requirements and the fact that, to be successful in Italy, you need to be omnichannel. All of that has created natural selection in favour of larger corporations.”

Adam Roarty

Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.