The European Commission (EC) has extended the ‘standstill period’ for Italy’s new tender for online gambling concessions until 18 November.
The decision follows a ‘detailed opinion’ submitted by the government of Malta, raising concerns over the technical and compliance requirements for B2B businesses in Italy’s new licensing framework for online gambling.
The Malta Gaming Authority (MGA) argues that Italy will impose ‘unnecessary barriers’ on B2B businesses, such as system and platform suppliers, by enforcing ‘duplicate requirements’ on technical procedures and compliance controls.
In response, the MGA warned the EC: “Member States should recognise that B2B operators may already hold licences in other Member States and may be subject to myriad requirements and checks, which could easily be mutually recognised if a cooperation framework is set up for this purpose.”
Italian authorities must provide ‘sufficient justification’ for imposing additional technical requirements on B2B businesses licensed in Europe, to prevent the new licensing system from becoming “an obstacle to both the freedom of establishment and the freedom of the provision of services within the internal market.”
The EC mandates the notification of legislative projects that impact businesses and services within the Common Market, allowing EU Member States and other stakeholders to raise concerns during a three-month “standstill” period.
Italy’s government will submit a response prepared by the Treasury addressing Malta’s concerns and affirming the legal requirements for new online gambling concessions.
Upon the conclusion of the ‘standstill period’, ADM, Italy’s Agency of Customs and Monopolies, will launch the new licensing regime.
As specified by the Ministry of Economy and Finance (MEF), the new Italian online gaming concessions will last for nine years, priced at €7 million per individual licence.
Additionally, licensees will pay an annual 3% licence fee on gross gaming revenue (GGR), net of gambling taxes and winnings. MEF will allow current licences to be extended for an additional year until 31 December, in line with Italy’s Budget 2024 rules.
The B2C rules will restrict licensed operators to “one app per gambling product type and one website”. The ADM will strictly prohibit and penalise the use of skin websites promoting branded products.
The ADM expects around 50 operators to apply for new licences, with projected revenue from concessions totalling €350 million and fixed annual concession fees generating €100 million.
All online gambling licences must implement new responsible gambling controls, including options for users to set limits on time and spending, as well as notifications to alert users when these predefined limits are exceeded.
The upcoming launch of a new licensing system will complete phase one of the Gambling Reorganisation Decree, marking the first regulatory review of Italian gambling since the legalisation of online gambling in 2011.
The Reorganisation Decree will continue with the government’s planned overhaul of land-based gambling regulations and protections across Italy’s 20 autonomous regions and 100 municipalities.