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What is the Italy Casino License?

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Here you can find all you need to know about Italy Casino Licenses. Since the participation of illegal gambling in Italy is viewed as a criminal activity and thus punishable under criminal laws, specific responsibilities have been assigned to the task of gambling.

Agenzia delle Dogane e dei Monopoli (ADM) was created to fight against illegal gaming by verifying the compliance of licensees and traders of the gaming sector. This body until September 2014, was recognized as AAMS. The AAMS (as previously known) – Amministrazione Autonoma dei Monopoli di Stado had been assigned by the state the duties of regulating gaming and license processing.

In the past pre-dating 2000, gambling was completely illegal, however gradually liberalized post-2000. The liberalization process was implemented through the following phases:

• 2004: Endorsement of remote instant and traditional lotteries;
• 2005: Validation of Lotto, Superenalotto and bingo;
• 2006: Legalization of tournament card games, like poker and skill games;
• 2009: Authorization of poker cash and casino games.

Casinos that hold an Italy Gaming License

There are certain requirements or rules in order to grant an Italy Gaming License.

Player Registration Requirements

For the protection of both parties, the service provider and the player. There are specific requirements and processes a player must initially complete before playing at an online casino. The player must also sign a contract in which he or she must disclose personal data;

• Name
• A copy of the client's Identification Card
• Address and also Tax code
• Codice Fiscale

The purpose of this rigorous registration process of the Italian government is to protect minors under the age of 18 years. In addition, should an adult facilitate gambling to minors, they will be at risk of criminal charges.

Types of licenses

The state has taken the responsibility of operations relating to online gaming and also the granting of licenses for internet gaming companies. Internet gaming licenses granted for 9 years allowing current license holders a gaming portfolio extension from the same license. Such extensions include the following:

• Instantaneous drawing and deferred drawing lotteries
• Lotto and associated games
• National pari-mutuel numeric games
• Card games such as poker and also Fixed-odds games of chance
• Games based on sports events and also Games based on horse races

Overall, Each and every one of the entities above requires their own gaming regulations. In conclusion, if you want this licence you need to follow the steps carefully.

Gambling in Italy is closely associated with the ancient heritage of the Roman Empire. The country takes pride in being the home of the world's oldest land-based casino Ridotto that opened its doors as far back as 1638. The gambling house is considered to be the predecessor of modern casinos. Even though Ridotto was open to the public, only the Italian nobility could enjoy its gambling services due to the high stakes and strict dress code.

Interestingly enough, the word 'casino' stems from the Italian word 'casa' which means house. Gambling in Italy has been legal ever since the 1900s, but the law that governs the industry was amended on several occasions. Currently, the country is believed to have one of the most adequate gambling frameworks within the European Union, serving as a role model to countries that are eyeing the opportunity to relax their gambling laws.

Legal Forms of Gambling in Italy

Under the Italian criminal law, gambling is an illegal activity and the organization of gambling activities in public or private places is viewed as an unlawful act. In Italy, illegal gambling is defined as wagering real money on an uncertain outcome in a game of chance for the opportunity to win a prize. Following that stream of thoughts, the authorities make a difference between games of chance as opposed to games of skill.

The AAMS

In 2007, the Italian authorities introduced an amendment to the Finance Act with regard to card games of skills. The Abruzzo decree of 2009 legalized online poker, sports betting, and fixed odds games of chance, also referred to as casino games. The legislation also introduced regulations for virtual betting and video lottery terminals. By 2011, Italy legalized most forms of gambling.The Amministrazione Autonoma dei Monopoli di Stato (AAMS) is a governmental agency that has the authority to issue licenses and monitor the provision of gambling services. The agency has blacklisted over 500 gambling websites and granted a license to over 160 online casinos so far.

Even though online gambling was regulated in 2007, AAMS started issuing licenses to foreign operators in 2010 due to certain laws and restrictions that did not allow Italian citizens to access foreign casino sites. As a result, the EU called for changes in the country's gambling regulations and from 2010, foreign casino operators have been allowed to operate in Italy provided that they obtain a license from the AAMS.

Taxes on Gambling Winnings

Italian residents are obliged to declare their profits above €500 accrued from gambling activities and pay a 6% tax. Winnings under €500 are exempt from taxes. In 2019, it was announced that the Italian lawmakers are planning a gambling tax hike. Under the proposal, smaller winnings under €500 will be taxed at 12%, while gambling profits exceeding €100 million will be subject to a 23% tax, which will be the upper ceiling. The new tax regime will apply to all earnings accrued from various gambling activities such as sports betting, lottery winnings, and others. The lawmakers suggested a flexible tax rate based on the value of winnings.

What is the Size of the Italian Gambling Market?

When it comes to gambling, the Italian market is believed to be the second-largest in Europe, bringing an annual income of over €80 million to the country's Treasury. Based on data published on statista.com, in 2015, Italian players wagered a total of €88.2 billion on online and offline gambling activities. Wcasino online.net. The amount wagered in 2016 reached €96.1 billion. In 2017, the figures show that €101.75 billion were wagered in Italy.

In 2018, the wagered amount kept on increasing, reaching the staggering amount of €106.86 billion. The statistics further reveal that Italian players spent a total of €110.54 billion in 2019. In other words, the total amount wagered on all forms of gambling activities in Italy increased steadily by over €20 billion for the period from 2015 to 2019.

Locals' Yearly Gambling Spendings

The following infographic presents comprehensive information about the locals' yearly gambling spendings on online gambling activities, the overall amounts they have won from online gambling, and the Gross Gaming Revenue (GGR) of locally licensed operators for the period from 2017 to 2019. The figures are represented in million euros.

The state of emergency and the lockdown caused by COVID-19 led to a significant leap in the Gross Gaming Revenue (GGR) of online gambling. The following infographic will provide you with detailed information regarding the GGR of online gambling in Italy from March to May 2020 compared to the GGR of online gambling in Italy for the same period in 2019.

Leading Operators in Italy

When it comes to leading operators on the Italian gambling market, PokerStars is at the forefront. According to statistics presented by statista.com about the market share of the leading casino companies in Italy for July 2020, PokerStars holds 12.48% of the market, followed by Sisal and Snaitech that hold 8.51% and 7.81% of the market, accordingly. Lottomatica is the other operator that has a strong presence on the Italian gambling market, holding 7.03% of the market.

Other prominent operators that hold a fair share of the market include Eurobet (6.69%), 888 (6.2%), SKS365 (5.83%), Betsson (5.39%), Novomatic (4.91%), Goldbet (4.36%), Bwin (4.04%), William Hill (2.25%), Leo Vegas (2.08%), and E-Play24 (1.99%).

Want a License in Italy? Turn to the ADM

Amministrazione Autonoma dei Monopoli di Stato (AAMS) was renamed Agenzia delle Dogane e dei Monopoli (ADM) in 2012 under Decree Law No. 95. The agency is responsible for overseeing and controlling the gambling industry in Italy as well as issuing licenses to operators.

In addition to that, the agency can impose fines and suspend/revoke licenses. Among its main goals is to fight against illegal gambling activities and ensure a safe gambling environment. ADM is also tasked with collecting gaming taxes and protecting individuals from gambling-related problems.

Its other functions include administration of customs duties, management of customs services, management of the manufactured tobacco products sector, prevention of tax evasion, management of chemical laboratories, and promotion and participation in associations.

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AAMS was established in July 1999 under the Legislative Decree No. 300 as one of the three tax agencies in Italy. Since 2012, the agency has legal status and regulatory, administrative, and financial autonomy. In April 2018, the Ministry of Economy and Finance thumbed up a drastic change of the agency's functions and organizations, outlining its major missions as mentioned above.

With regard to gambling, the tax agency regulates the following forms of gambling:

• Terrestrial casinos
• Slot machines and video-lotteries
• Sports and horserace betting both online and offline
• Online and offline pool betting
• Online and offline bingo and lotteries
• Online poker and other card games
• Virtual and live betting

Requirements for Obtaining Gambling Permits in Italy

The Italian online gaming licensing regime is not the most straightforward. Casino operators that wish to legally operate on the Italian market need to obtain a license from ADM – the agency that monitors the gambling industry throughout the country. Prior to submitting documents to apply for a license, casino operators should meet certain requirements to be eligible for obtaining an Italian gambling license.

Under the Italian laws, the operators should have their servers placed in a country that is part of the European Economic Area (EEA). What is more, the operators need to present a bank guarantee of €1.5 million as security to ensure that they can pay out the winnings to their players.

Furthermore, the applicants need to hold a license issued in another European jurisdiction. The agency will also check the moral probity of the applicants to make sure that only reputable operators will have access to the lucrative Italian gambling market.

Licensing Application and Issuance Procedure

The Italian casino license is among the most sought-after documents on the market as it allows operators to provide all kinds of gambling services throughout the country. In addition to that, the gambling industry in Italy has witnessed steady growth over the past few years, adding further appeal to the market.

From casino games to sports betting, the Italian license covers all types of gambling activities. In other words, casino operators do not need to apply for several licenses to offer various gambling activities. It is important to explain that the expired licenses are not renewed automatically. In the lines below, our expert team will provide detailed information regarding the steps operators need to follow to apply for a license:

Steps operators need to follow to apply for a license

1ADM first launches a public tender

ADM first launches a public tender – such tenders are windows of time in which ADM allows operators to apply for casino licenses. Interested operators have to submit their applications to the ADM within 30 days after a tender is opened. Operators cannot apply for licenses once the application window closes.

Such tenders were launched in 2006, 2011, and 2018. Considering the last public tender, the agency opened applications for up to 120 online gaming licenses, but only 70 were issued. The price of each license was set at €200K.

2Submission of relevant documentation

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Submission of relevant documentation – interested operators that want to obtain an Italian gambling license are required to prepare a set of documents that includes proof that the website is registered on an .it domain, notarized copies of the passports of all founders and shareholders, bank certificates proving the account opening, proof of financial sustainability, proof of the gambling software quality, platform and games description, and detailed business plan.

3Posting a €1.5 million bank guarantee

Posting a €1.5 million bank guarantee – this is a bank document that proves a given operator's financial stability. It should be attached to the package of documents in support of the license application.

4Sending a technical certification

Sending a technical certification – the final step of the journey is to send a technical certification from a testing house to ensure the operator's software is on par with ADM's requirements. It is important to explain that each game category needs to be approved through a technical license following the certification of the platform.

5ADM publishes a list of approved operators

ADM publishes a list of approved operators – after the submission of the application, the agency will take 6 to 8 weeks to check the applications and publish a list of the approved operators. All licenses granted during the 2018 tender have a duration of 4 years and thus will expire on 31st December 2022.

Interested parties are advised to check additional details and updates regarding the procedure on ADM's official website prior to submitting a license application.

Italy to Reduce the Number of Online Gambling Licenses

In 2019, the Italian government revealed its plans to cut down the number of online gaming licenses from 85 to 50. The new measures rules are expected to come into effect in 2023. The government also mulls over changing the price of the online gambling licenses to €2 million. In addition to that, the officials suggest prolonging the duration of the gambling licenses to 9 years.

The new public tender is expected to commence in 2021 or 2022. Operators who wish to set foot on Italian soil will be able to pay for their gambling licenses in two installments. The first one should be made within 30 days upon receiving the license and it should be at least 50% of the price. The second installment should be made within 30 days after the license is signed. Online xml validator xsd.

The government also considers limiting the number of slot machines to 250,000, to allow a maximum of 58,000 video lottery terminals, and up to 2,800 gaming halls to operate throughout the country. The new regime aims at curbing the constantly growing gambling addiction rates.

The Cost of Operating on the Italian Gambling Market

Obtaining an Italian casino license is not the most cost-effective endeavor, but it pays well considering the size of the Italian gambling market. Compared to other countries from the EU, the Italian gambling license is quite pricey.

Tax Hike

After the tax hike introduced in 2019, online casino operators need to pay a 25% tax on gross gambling revenue (a 5% increase), sports betting operators are required to pay a 24% tax on revenue (an increase of 2%), and retail betting operators pay 20% on revenue (a 2% increase).

The tax hike was proposed at the same time when the country's authorities introduced a blanket ban on gambling advertising, which prohibits operators and their affiliates from promoting their services via media platforms.

Turnover Gambling Tax

In May 2020, it was reported that the Italian government plans to introduce a 0.5% turnover gambling tax on licensees' sports betting turnover in an attempt to help the country's sports that witnessed a significant slowdown due to the Covid-19 outbreak. The proposal that came into effect in May 2020 is a temporary measure that will remain in place until December 2021 or if the revenue target of €90 million is reached. Needless to say, the new tax was not welcomed with open arms by the operators.

Sanctions for Violation of the Licensing Conditions

Heavy fines will hit errant gambling operators after the Italian government has taken tougher measures against illegal gambling. Participants in illicit gambling operations will face a criminal sentence of up to 6 years. Furthermore, gambling companies that assist criminal operations will be hit with a hefty fine of €50,000, while betting retail shops or arcade venues that allow the operation of unauthorized gaming terminals will be slapped with a €20,000 penalty.

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Blocking Gambling Sites

A set of operational provisions require all internet service providers (ISPs) to block access to gambling sites that do not have a license issued by the Italian regulator. Italian residents who try to access an unlicensed online casino will be redirected to an ADM splash page that advises them to leave the website of the casino as it does not hold a license from ADM.

To prevent Italian residents from playing at gambling sites that are not regulated by ADM, the agency published a list of the blacklisted sites, which is updated regularly.

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According to an official economic and financial report from 2018, around 7,000 online gambling websites ceased operations as ADM found them violating Italy's gambling laws. The report reveals that the Italian law enforcement agencies prevented over 10 million attempts to access unlicensed gambling websites.

The implementation of new tougher measures against unauthorized operators in 2018 resulted in 5 Italian ISP providers being slapped with a total of €320,000 fine for failing to meet gambling restriction and monitoring requirements.

Minimizing Gambling-Related Problems

In 2018, Italy passed a law that bans commercials promoting gambling and betting services. This act aims at minimizing gambling-related problems among Italian people. Under the so-called Dignity Decree, operators are not allowed to advertise their gambling services in Italy. The restriction evoked a wave of negative reactions among operators.

In September 2020, news that Italy's communication watchdog, Agcom, slapped Google with a hefty fine of €100,000 made the headlines. The Italian communications authority fined Google for breaching the national law that bans gambling commercials. Google was found to support paid search ads for Sublimecasino.com, a French marketing affiliate.

Final Words

In the end, ADM has taken the right steps to prevent vulnerable individuals and children from gambling exposure. However, we cannot help but mention that the burdensome taxes may trigger an exodus of operators. We have witnessed similar scenarios of regulators imposing too steep taxes and the result is all the same – licensed and legitimate operators leaving the market.

Italy has always been considered a lucrative market due to the high demand for gambling services among locals. However, some industry insiders believe that the tax hike and the recently introduced turnover gambling tax may harm the currently proliferating Italian online gambling market.