Italy Gambling Sector Faces Regulatory Deadlock, Trade Body Warns

Regulatory Deadlock in Italy’s Gambling Sector – Trade Body Warns of Rising Unregulated Activity

Key Takeaways

• Industry body EGP-FIPE told Italy’s Senate that the gambling sector is stuck in a regulatory deadlock.
• Repeated extensions of national concessions and fragmented regional rules have stalled market development.
• Local land-based restrictions are described as ineffective and potentially shifting gambling to online or unregulated channels.
• Italy compressed more than 400 operating domains into 52 licences under a new licensing structure in November 2025.
• Licence revenues generated approximately €364 million for the state as of November last year.

Trade Body Raises Concerns Before Senate Committee

Italy’s regulated gambling sector is facing what industry representatives describe as a regulatory stalemate. The trade association EGP-FIPE presented its concerns to the Constitutional Affairs Committee of the Senate, warning that the current situation risks expanding unregulated gambling activity.

EGP-FIPE represents operators as part of the Italian Federation of Public Establishments within Confcommercio. During the hearing, the association argued that the legal market’s development has been effectively frozen. According to its representatives, repeated extensions of national gambling concessions combined with differing municipal and regional regulations have created an environment that prevents long-term planning.

Emmanuele Cangianelli, president of EGP-FIPE, stated that the system is stuck between concession extensions and non-homogeneous territorial rules. He said this situation blocks serious network planning and weakens protective measures designed to address problem gambling. Without a coherent national framework, he added, prevention efforts lose effectiveness and space for uncontrolled supply grows.

Fragmented Regulation and Its Impact on the Legal Market

The association’s central argument focuses on regulatory fragmentation. Italy’s gambling market is regulated at national level by the Agenzia delle Dogane e dei Monopoli, but municipalities and regions also impose their own rules, particularly affecting land-based venues.

EGP-FIPE told lawmakers that this combination of national concession extensions and local regulations has left the legal market in a state of uncertainty. According to the association, the absence of a cohesive reform framework prevents effective network planning and undermines coordinated responsible gambling measures.

For operators, this regulatory structure creates operational complexity. For users, it can influence the availability and structure of licensed land-based gambling options, depending on the region or municipality.

Local Land-Based Restrictions Criticised as Ineffective

A specific focus of the Senate hearing was on municipal measures targeting land-based gambling. These include proximity restrictions, known as distanziometri, which limit how close gambling venues can be to sensitive locations, as well as strict opening hour limits.

EGP-FIPE described these tools as largely ineffective in reducing problem gambling. According to Cangianelli, evidence suggests that where the physical offer is rigidly restricted, gambling activity does not necessarily decline but may instead shift to online platforms or to the underground market, where oversight is minimal or absent.

He argued that such territorial instruments introduce distortions in terms of legality and the sustainability of the authorised network. In this view, local restrictions may weaken licensed operators without achieving the intended public policy objectives.

For users, this dynamic can affect how and where gambling products are accessed, particularly in regions with strict land-based controls.

Advertising Ban Also Under Scrutiny

The debate over Italy’s gambling framework also extends to advertising. The Italian Football Federation recently called on the government to reconsider the country’s 2018 blanket ban on betting advertising and sponsorships.

Outgoing FIGC president Gabriele Gravina described the ban as largely ineffective in reducing underage and illegal gambling. He referred to findings from a 2022 Parliamentary Commission of Inquiry report that showed continued growth in these areas despite the advertising restrictions.

Although separate from EGP-FIPE’s testimony, the comments reflect broader industry concerns that existing regulatory tools may not be delivering the intended outcomes.

Call for Nationally Coordinated Prevention Tools

Beyond criticism of local restrictions, EGP-FIPE emphasised the importance of behavioural prevention mechanisms. These include self-exclusion systems, play behaviour tracking and advanced technological monitoring solutions.

According to the association, such tools are already available or under development. However, it warned that without stable national governance to synchronise efforts across regions and municipalities, these measures will produce inconsistent results.

Cangianelli stated that a clear governance structure is needed. Regions may have a role, but within a shared national plan. Without coordination, partial interventions may accumulate without resolving underlying issues.

For licensed operators, consistent national standards could affect compliance requirements. For users, harmonised systems may determine how self-exclusion or monitoring tools function across different platforms and regions.

Italy’s Gambling Landscape and Recent Licensing Reform

Italy remains one of Europe’s largest online gambling markets by turnover and tax yield. Over the past decade, online betting and gaming have grown significantly, while brick-and-mortar venues have faced increasingly strict municipal controls.

In November 2025, Italy implemented a new licensing structure that reduced more than 400 operating domains to 52 licences. This reform replaced a broad ecosystem with a more tightly governed market structure involving a smaller number of operators.

As of November last year, licence revenues generated approximately €364 million for the state. The restructuring concentrated the market under fewer licence holders, while maintaining Italy’s position as a major regulated jurisdiction.

Our Assessment

The Senate hearing highlights ongoing tensions within Italy’s gambling framework. EGP-FIPE’s testimony points to a combination of concession extensions, fragmented local rules and strict land-based restrictions that, according to the association, hinder coordinated prevention and planning. At the same time, recent licensing reforms have consolidated the online market under fewer operators while generating significant state revenue. For users and operators, the regulatory structure continues to shape market access, compliance obligations and the balance between licensed and unregulated supply.