A New Licensing Era Reshapes Italy’s Online Gambling

A New Licensing Era Reshapes Italy's Online Gambling

When Italy's updated online gambling framework came into effect, it signaled more than a routine administrative change. It marked a decisive shift in how the country intends to manage one of Europe's most active digital gambling markets. The activation of the new licenses by the Customs and Monopolies Agency (ADM) set the tone for a landscape that has been preparing for structural changes for months, aiming to streamline the sector and establish clearer regulatory expectations for all parties involved.

The ADM confirmed that the 52 licences were switched on early Thursday morning, after a short delay that pushed the activation forward from midnight to 7am. Officials described the transition as a reset aimed at introducing a more coherent operating environment. While the later-than-planned timeline raised some questions among operators, the agency emphasized that the delay stemmed from technical refinements rather than unresolved policy complications. By the time operations began, the regulator appeared intent on signaling that the new system was ready to function without disruption.

One of the most visible consequences of the new framework was the immediate disappearance of a large number of websites. Operators can no longer operate multiple skins under one license, meaning that only a single domain can be used per license. This adjustment drastically reduced the number of accessible platforms overnight, creating a far more consolidated environment. Although 52 licences were issued, only 46 operators are active, as some companies have secured multiple licences. This consolidation is part of the regulator's intention to reduce fragmentation and strengthen oversight across the sector.

The financial commitment required to enter this new licensing environment was substantial. Each licence cost €7 million, bringing the state a total of €364 million in revenue from the application process alone. The price prompted some well-known international brands to step away from the Italian market rather than pursue the new authorizations. Among those opting not to reapply were Betway and Unibet, illustrating that the cost and conditions associated with the updated framework have influenced strategic decisions for operators with broad global portfolios.

The new regime goes further than simply reorganizing the operator landscape. It also introduces more stringent compliance obligations and reinforces safeguards that affect player access and participation. Registration through the national SPID digital identity system or an electronic ID card is now required, reinforcing the regulator's intention to anchor online gambling activity to validated and traceable identity verification tools. Self-exclusion options and spending limits remain mandatory under the updated rules, continuing the country's effort to maintain consistent player protection mechanisms.

By revising the licensing model and reducing the number of active operators, Italy is aligning its regulatory strategy with broader European trends that favor controlled access, monitored activity, and tighter oversight. The new system suggests that the regulator aims to encourage long-term stability rather than rapid expansion. The presence of fewer operators may also influence competitive dynamics, possibly shifting market share distribution as companies adjust their strategies under the revised conditions.

The economic significance of the Italian online gambling industry provides meaningful context for the scale of this regulatory shift. With €5 billion in wagers recorded and €3.8 billion in operator revenue, the sector sits just behind the United Kingdom as Europe's second-largest. The state collected €1.1 billion in taxes, underscoring the fiscal importance of maintaining a structured and predictable regulatory framework. By resetting the licensing rules, the government appears to be adopting a long-term approach, likely seeking to preserve revenue streams while strengthening compliance mechanisms that align with evolving policy objectives.

For operators remaining in the market, the transition period will involve reconfiguring digital infrastructure, clarifying domain structures, and adjusting internal compliance practices. The requirement to limit operations to a single domain per licence forces many companies to rethink how they present their brands to customers and how they organize their digital portfolios. This consolidation may influence marketing strategies, customer acquisition patterns, and the way operators position their offerings in a market that now demands clearer definitions of identity and compliance.

The regulator's emphasis on identity verification through national digital identification tools may also shape how operators design user onboarding processes. This requirement establishes a direct connection between online participation and government-approved identification systems, potentially influencing user behavior and enhancing the regulator's oversight capabilities. In a market of this size, tightening identity controls marks a notable step toward safeguarding the system against misuse, while simultaneously collecting more reliable data on market activity.

As Italy enters this new phase, the sector's future trajectory will depend on how operators adapt to the structured environment and whether the regulator maintains its pace of enforcement and modernization. The overhaul of the licensing regime indicates that the country is not only refining its approach but also preparing for evolving digital gambling trends. By reducing fragmentation and clarifying compliance obligations, Italy may be better positioned to navigate future developments in the sector more effectively.