Regulated
In the Italian legal system, the distinction between GAMING  (i.e., competition for recreational purposes which ends with the victory of individuals or groups according to specific rules and having as object the stake, i.e. the sum of money or other goods that a participant owes to the based on the outcome of the game) and BETTING (i.e. the promise of a sum of money or other good to whoever predicts exactly a future and uncertain event) has only a didactic and not a juridical relevance, often converging the one figure in the other, when the forecast formulated for betting regards, as an event, the victorious outcome of a game.

In Italy the legal gambling market is structured into two segments;

• The first is that of «PUBLIC GAMING» and is managed by the State through the Customs and Monopolies Agency (ADM, into which the Azienda Autonoma dei Monopoli di Stato/AAMS was incorporated), which through a network of concession holders /licenses ensures the regulated distribution of the most widespread types of legal gaming;
• The second sector concerns the activity of authorized gaming houses, CASINOS, joint-stock companies whose capital is held by the granting administrations (Regions, Provinces or Municipalities). There are four casinos in Italy: Sanremo, Campione d’Italia, Venice and Saint Vincent.

Gambling, defined by Article 721 of Italian Penal Code (I.P.C.) “those games in which the purpose of profit occurs and the win or loss is entirely or almost entirely random“, is prohibited in Italy unless it is authorized by the State or held in authorized gaming houses (casinos) and on cruise ships sailing outside the Mediterranean Sea. In fact, Article 718 I.P.C. punishes with arrest no less than three months and a fine no less than 260 euros “whoever, in a public place or place open to the public, or in private circles of any kind, holds a gambling or facilitates it” (doubled penalty, pursuant to Article 719 of the Criminal Code if the offender has set up or kept a gambling house, if the fact is committed in a public establishment, if large sums are wagered and if there are minors among the participants), art. 720 punishes with the arrest of up to six months or with a fine of up to 516 euros “Anyone who, in a public place or open to the public or in private circles… is caught red-handed while taking part in gambling“, and Art. 723 P.C. punishes with a fine from euro 5 to euro 103 “Anyone, authorized to keep gaming halls, allows non-gambling games which are in any case prohibited by the Authority (see below art. 110 TULPS)“.

The Italian Civil Code distinguishes between merely lawful betting (i.e.: poker, roulette, etc.), for which there’s no legal action for the payment of a gambling or betting debt, even if the gambling or betting is not prohibited unless the debtor proves that he has suffered fraud or he’s incapable (art. 1933) and protected betting, such as horse racing and sports betting (art. 1934) and authorized lotteries (art. 1935), for whose there’s the aforementioned legal action.

The Consolidated Law on Public Safety (TULPS, Royal Decree No. 773/1931, and subsequent amendments) also states rules regarding the licenses for gaming and betting (articles 86 and 88) and entertainment machines (article 110).

The Legislative Decree no. 496/1948 and the Presidential Decree (DPR) no. 581/1951, allowed the use of concessionaires other than the State for the organization and exercise of gaming activities.

Consequently, until the late 1990s, only Totocalcio, Horse Racing betting, Lotto and some national Lotteries were legal in Italy. The turning point was the 1998 World Cup in France, when betting agencies were able to offer odds on certain matches in the tournament. Since then, the culture of betting in our country has changed radically.

Article 3 paragraph 230 law n. 549/1995 (Financial Law 1996), in fact, established that “the organization and exercise of tote and fixed-odds bets reserved to CONI on sports competitions organised or carried out under its control can be entrusted in concession to single or companies operators that offer adequate guarantees” and attributed to the Ministry of Economy and Finance (MEF) the power to issue the relative regulations / decrees

With legislative decree n. 300/1999, all the responsibilities in the gaming and betting sector have been assigned to the Autonomous Administration of State Monopolies (AAMS, established in 1927, which had already acquired the national lotteries in 1988 and in 1994 the Lotto game and the instant lotteries), subsequently incorporated by Law no. 135/2012 in the Customs and Monopolies Agency (ADM), a public body with legal personality with wide financial, organisational and accounting autonomy.

With Law n. 133/1999 (article 16), Law n. 311/2004 and the subsequent D.M. no. 111/2006 authorized Concessionaires authorized by the AAMS / ADM (on whose site you can find the updated list) the collection of totalizer and fixed-odds betting on sporting events other than horse racing and on non-sporting events.

The Ministerial Decree (D.M.) n.156/2001 attributed to the Ministry of Finance through AAMS (then  ADM) the competence to authorize the licensee to collect  betting by telephone or telematics (online).

Law No. 266/2005 (Financial Law 2006) gave the Customs and Monopolies Agency (A.D.M.) the power to also regulate the Online gaming sector with the consequent prohibition for the unauthorized sites.

The “Bersani Decree” (Law Decree No. 223/2006 converted into Law No. 248/2006) opened the horse racing and sports betting market to all national and foreign operators having certain reliability requirements and introduced the SKILL GAMES (art. 38 paragraph 1 letter B) defined as “remote games with cash winnings, in which the result depends, to a greater extent than the random element, on the skill of the players” (i.e.: Draughts, Chess, Bridge, Poker, Texas Hold’Em, etc), which can only be played on online sites managed by concessionaires authorized by A.D.M.

The Anti-Money Laundering (AML) legislation was introduced by Legislative Decree no. 231/2007 (amended by Legislative Decree 151/2009, by Legislative Decree no. 90/2017 implementing of EU Directive n. 2015/849 and by Legislative Decree 125/2019 implementing the Fifth EU Anti-Money Laundering Directive no. 2018/843) and concerns all land-based and online gaming and betting operators.

Law no. 88/2009 contains provisions on online gaming and betting:

• Fixed odds and totalizator on sports betting events including simulated ones, on horse racing and other events
• Competitions with sports and horse racing predictions
• National horse racing games
• Skill games
• Fixed odds betting with direct interaction between players
• Online Bingo
• National totaliser number games
• Instant and deferred lotteries

Law no. 158/2012 (“Balduzzi Decree”) contains rules against gambling addiction.

The Ministerial Decree no. 47/2013 regulated remote betting at fixed odds with direct interaction between players (so-called Betting Exchange).

Law Decree n. 87/2018 (“Dignity Decree”) increased the tax on withdrawals from slot machines (AWP) and VLT and banned the advertising of gambling activities, except for some cases.

Decree n.145/2022 issued on 1 August 2022 by the Ministry of Economy and Finance (M.E.F.) and entered into force on 28.10.2022, contains news on the regulation of fixed-odds bets on sporting events other than horse racing and on non-horse racing athletes (see below).

Market size
In 2023 the gaming market in Italy recorded a total collection of 147.7 billion euros. 127 billion of these is the amount of winnings, while the actual spending (collected minus winnings) was 20.7 billion euros, a figure substantially equal to 2022, when the spending was 20.4 billion euros.

In 2023 the online sector represented 21% of total spending, constantly growing compared to 9% in 2019, with a total volume of 4.3 billion euros (more than doubled compared to 2019). Although the retail sector is recovering compared to the pandemic period, a trend of stagnation is observed, with a decrease of 7.7% compared to 2019. Casino games are among the sectors driving online growth, representing in 2023 55 percent of online spending (around 2.4 billion euros) and sports betting (around 1.5 billion euros), which quadrupled and doubled respectively in the period.

However, data is growing as regards the Treasury. Thanks to legal gaming, in fact, a total of 11.6 billion euros ended up in the state coffers, a value up by +3.6% compared to the previous 12 months. The AWP and VLT market continues to be the largest contributor to the Treasury with 60% of tax revenues (around 5.5 billion euros). 27% instead came thanks to Lotto, SuperEnalotto, Scratch Cards and Lotteries (around 3.4 billion euros). 5.6% of payments to the Treasury came from betting, while 7.3% can be attributed to other games.

As regards the betting sector, the overall expenditure in 2023 in Italy was 3.1 billion euros, while the contribution to the Treasury was 684 million euros. From other games, 827 million arrived in the Treasury coffers, while spending was 2.5 billion

2023 ended with spending on agency sports betting of 929.8 million euros, a value substantially stable compared to the 922.5 million euros in 2022 given the slight growth of 0.8%.

The increase in collections is more evident, going from 4.9 billion in 2022 to 5.1 billion in the twelve months just ended. The growth in this case was therefore +3.9%.

Lottomatica leads the spending ranking, with a market share of 33.1%. Snaitech and Eurobet were also on the podium with 19.3% and 16.2% of market share respectively. The two companies also grew in terms of spending. Snaitech recorded an increase of +10.3%, while Eurobet of +15.1%. Sisal (+6.8%), Planetwin365 (+4.5%), Betaland (+7.1%), Admiral Sport (+9.2%) also grew.

Competitive landscape

As per the aforementioned legislation, the following games are considered LEGAL:

1. Number games with fixed odds
2. Lotto
3. Numerical totaliser games (Superenalotto, Eurojackpot, Win for Life)
4. Sports-based gaming/betting (Totocalcio, Totip, Totogol).
5. Fixed odds bets
6. Horse racing bets
7. Bets for non-sporting events (example: music festivals such as Sanremo and Eurovision Song Contest, reality shows, etc)
8. Entertainment machines pursuant to with cash prizes (AWP / Newslot and VLT (art. 110 paragraph 6 TULPS)
9. Amusement machines without cash prizes (art. 110 paragraph 7 TULPS)
10. Games of skill such as backgammon, dominoes, or naval battles (provided they are remote)
11. Fixed-odds games such as casino games (for example: roulette, with the limitation of the fixed and remote odds, poker, etc)
12. Card games organised in a form other than a tournament such as poker cash (provided at a distance)
13. Traditional and instant lotteries
14. Bingo, both in the remote and hall versions

Furthermore, local events such as lotteries, peaches and charity stand and bingo are legal, if promoted by non-profit organizations, associations, non-profit committees, ONLUS, provided they are necessary for their livelihood or by political parties within the context of local events and raffles are also allowed in the family and private sphere, for recreational purposes. Despite the obvious similarities, these types of games with cash prizes do not constitute gambling according to Italian law and are simply defined as games with cash prizes.

The Register of Authorized Operators (RIES, set up with Law No. 266/2005) contains the list of owners, possessors and holders of the devices and terminals referred to in article 110, paragraph 6, letter a (AWP) and letter b (VLT) T.U.L.P.S. (section A), of the Concessionaires for the management of the telematic network of the entertainment devices and terminals indicated above (section B) and of the other operators Subjects who carry out, on the basis of continuous contractual relationships with the subjects referred to in the same sections, related activities to the aforementioned appliances (section C).

This Register is arranged and renewed annually by the Customs and Monopoly Agency (A.D.M.), subject to verification of the applicants’ possession of specific requirements and conditions, including financial and the payment of a tax of 150.00 euros in addition to the stamp duty of 16.00 euros.

Localisation

PAYMENT METHODS
The payment methods preferred by the Italians are Credit and debit cards VISA Mastercard, PayPal, Neteller, Skrill, Paysafecard, Bank Transfer, PostePay and ecoPayz.

Bitcoin and cryptocurrency, on the other hand, are used as an alternative method by very few operators.

The AWPs machines (Amusement With Price/New Slot, art.110 paragraph 6 letter a TULPS), which can play games containing elements of skill but not poker and work only if connected to the ADM telematic network, have the following characteristics: a) for each game, not exceeding 1 euro, the duration of the game cannot be less than 4 seconds; b) the distribution of the WIN in cash, each of a value not exceeding 100.00 euros, takes place immediately after the conclusion of the game exclusively in coins; c) the WINNINGS, calculated by the machine, in a non-predetermined way, on a total cycle of no more than 140,000 games, must not be less than 75% of the sums played.

The VLTs (art. 110 paragraph 6 letter b, introduced by Law n. 266/2005), gaming terminals based on Served Based Gaming (SBG) connected to a network and a central system, have the following characteristics: a) they can be connected to the Concessionaire’s Gaming System directly, through the Concessionaire’s computer network, or indirectly  through a room server connected to the Gaming System; b) Random Number Generator (RNG), component of the Gaming System which determines, at a central level, the outcome (winning or not) of each single game; c) it is possible to introduce coins (from €. 0.50 to €. 2.00), banknotes (from €. 5.00 to €. 100.00) and paper tickets issued directly from the cash desk in the room (cash desk ) or previously released by other VLTs within the same hall; d) the maximum duration of a ticket, for the purpose of its payment at the cash desk or reintegration into a VLT, is equal to thirty days; e) the bets, for each game, vary from a minimum of €. 0.50 to a maximum of €. 10.00, according to the game chosen; f) the maximum WIN for each game is equal to €. 5,000.00; g) tickets up to €. 5,000.00 are paid directly to the player in the gaming room, in the manner prescribed by current legislation on anti-money laundering, while higher-value tickets will be paid to the player exclusively by the Concessionaire, after validation and booking of the ticket in the gaming room; h) the PAYOUT cannot be less than 85%.

About INSTANT LOTTERIES,on the basis of the agreement between AAMS/ADM and Lotterie Nazionali s.r.l., it is up to the concessionaire to pay for the winning tickets, making use of one or more banking institutions, which ensure the service throughout the national territory. The methods of payment of the prizes are as follows: a) For prizes up to €500, presentation and validation of the ticket and payment at any authorized point of sale; b) For prizes from 501 euros to 10,000 euros, presentation and validation of the ticket at any authorized point of sale, validation of the ticket activates a procedure for booking the winnings and the consequent payment takes place according to the method chosen by the winner (by cashier’s check or by bank transfer bank or post office); c) For prizes over 10,000 euros, by presenting the ticket or by sending it at the risk of the holder, to the Prize Office of the Lotterie Nazionali S.r.l. , which will issue the player with a specific receipt or, alternatively, the ticket can be presented at a bank counter (in this case the Bank collects the ticket, issuing a specific receipt and forwarding it to the concessionaire who will arrange for payment according to the method chosen by the winner).

For all prize ranges, the winnings must be claimed no later than 45 days from the publication in the Official Gazette of the notice of closure of the lottery.

For the INSTANT TELEMATIC LOTTERIES the payment methods are differentiated according to the amount of the winnings and provide for: a) direct credit to the gaming account for winnings of up to 10,000 euros; b) for amounts exceeding €10,000, the winnings are certified by a special commission chaired by the AAMS/ADM and paid to the player by the prize office of the “Lotterie Nazionali S.r.l.” concessionaire. according to the mode chosen by the player.

As regards the LOTTO lottery, the payment of the prize, calculated net of withholding taxes (8%), is paid no later than 30 days from the date of the redemption request.

Regarding the “GRATTA E VINCI” (“SCRATCH AND WIN”) lottery, the payouts are as follows: a) 18% for winnings between 1,000 euros and 10,000 euros; b) 21% for winnings between 10,000 euros and 50,000 euros; c) 23% for winnings between 50 thousand euros and 10 million euros; d) 25% for winnings over 10 million euros.

The BETTING winnings (both “FIXED ODDS” and “TOTALIZER”) can be collected at the agency where the wager was made, by presenting the paper receipt received at the time of the bet. In the case of bets placed in a shop or corner (receptionist’s, bar, tobacconist’s, etc.), any winnings can be collected in any other point of sale belonging to the same concessionaire whose name and identification code are shown on the receipt of the play. For bets made electronically, the crediting of the sums to the bettor’s gaming account takes place automatically as soon as the outcomes of the events are made official. The winning receipt must be presented for collection within 90 calendar days from the date of the most recent event contained in the ticket.

PROMINENT MARKETING/ADVERTISING CHANNELS

The first intervention on the matter was carried out with the Law Decree n. 158/2012 (so-called “Balduzzi Decree”, converted into Law no. 189/2012), which:

1. prohibited the advertising of games with cash prizes on television and radio broadcasts and in the pages of the written press;
2. prohibited advertising messages for games with cash prizes in newspapers, magazines, publications, during television and radio broadcasts, cinematographic and theatrical performances and via the internet, which incite gambling or glorify its practice, which do not warn of the risk of addiction to the practice of the game and which do not clearly show the percentage of probability of winning that the subject has in the single game;
3. it obliged to report the warnings on the risk of gambling addiction and the relative probability of winning on the gaming slips and coupons on prize entertainment machines (A.W.P.), in halls equipped with Video Lottery Terminals (V.L.T.); in points of sale for bets on sporting and non-sporting events and on websites intended to offer games with cash prizes;
4. has provided for the transgressors (both the client of the advertising message and the owner of the means of communication concerned) to impose an administrative fine ranging from 50,000 to 500,000 euros.

With the 2016 Stability Law (Law No. 208/2015) further advertising limitation provisions are approved (Article 1, paragraphs 937-940). In particular, the advertising of games with cash prizes in “generalist” radio and television broadcasts and in those aimed primarily at an audience of minors with the exclusion of specialized media is prohibited.

Finally, the Law Decree n. 87/2018 (so-called Dignity Decree, converted into law no. 96/2018) introduced an absolute ban on advertising for games and bets, including sponsorships and forms of indirect advertising. In particular the art. 9 concerns the prohibition of any form of advertising, even indirect, relating to games or bets with cash prizes, whatever the means used (radio, TV, press, internet, etc.). The following are excluded from the aforementioned prohibition, also on the basis of the Guidelines subsequently issued by the Italian Communications Agency (AGCOM):

1- National lotteries with deferred draws;

2- The lotteries and bingos organized locally for charity and the logos on safe and responsible gaming of the Customs and Monopolies Agency (ADM);

3- The so-called “lottery of fees”;

4- Communications having “an exclusive descriptive, informative and identifying purpose of the legal game offer, functional to allow an informed choice of game”;

5- The information services for comparing the odds or commercial offers of the various competitors (the so-called “odds spaces”);

6- The “mere display of winnings” made at a point of sale, only if carried out in such a way as not to induce paid gambling;

7- The telesale of goods and paid gaming services authorized with the concession of A.D.M. aimed exclusively at the conclusion of the gaming contract;

8- The promotion of events other than the paid gaming offer that take place within casinos or gaming halls;

9- The distinctive signs of legal gaming (shop signs or online site domains);

10- The logo or reference to gaming services present on the windows of establishments that offer paid gaming;

11- Information limited only to the characteristics of the various gaming products and services offered (odds, jackpots, odds of winning, minimum bets, any bonuses offered);

12- Campaigns and communications relating to corporate social responsibility (CSR);

13- The “mere mention” of the concessionaire as the financier of a given project or charitable initiative;

“B2B” communications;

14- Free algorithm indexing services, provided directly by search engines or marketplaces (Apple Store, Google Play);

15- Use of the brand that identifies, in addition to gaming services with cash or gambling prizes, other activities of an independent nature.

16- Services of comparing odds between bookmakers.

In the event of violation of the law, a fine equal to 20% of the value of the sponsorship or advertising is envisaged, with a minimum amount of 50,000 euros for each violation. AGCOM is responsible for the imposition of sanctions, which flow into the Fund for the fight against pathological gambling.

Top Key Attractions and Challenges

The BETTING winnings (both “FIXED ODDS” and “TOTALIZER”) can be collected at the agency where the wager was made, by presenting the paper receipt received at the time of the bet. In the case of bets placed in a shop or corner (receptionist’s, bar, tobacconist’s, etc.), any winnings can be collected in any other point of sale belonging to the same concessionaire whose name and identification code are shown on the receipt of the play. For bets made electronically, the crediting of the sums to the bettor’s gaming account takes place automatically as soon as the outcomes of the events are made official. The winning receipt must be presented for collection within 90 calendar days from the date of the most recent event contained in the ticket.

The 5 most popular Slot and Casino sites in Italy, according to a comparative ranking, are :

• 888 Casino: 125% up to €500, Wagering, Withdrawal Times 2-5 Business Days, Online Slots, Jackpot Slots, Slots Providers
• Eurobet: Casino bonus up to €1000 + 30 free spins and €5 no deposit;
• Star Casino: Cashback Bonus up to €200 + Unlimited Free Spins + 50 Free Spins No Deposit;
• SNAI: 100% bonus up to €1,000 + €10 free
• Bwin: Welcome Offer 100% up to €200 + 50 Free Spins

The 5 most popular Betting sites in Italy, according to a comparative ranking, are:

• SNAI: €5 free + 100% up to €300
• William Hill: €35 immediately + €200 on the first deposit
• Novibet: 50% of the first deposit up to a maximum of €20
• Eurobet: €5 deposit bonus + bonus up to €100
• Bwin: € on the first bet + 30 Free Spins