Italy’s Stalled Retail Gambling Reform Leaves Courts to Shape the Rules

Highlights

• Italy’s land-based gambling reform remains stalled amid political uncertainty ahead of the next general election.
• Court rulings and complex regulatory requirements are creating operational challenges for retail and online gambling businesses.

Italy’s land-based gambling sector continues to face regulatory uncertainty as long-delayed retail reform remains politically stalled. 

Industry representatives speaking at the SBC Summit in Lisbon warned that a comprehensive reorganisation of the retail gambling network is unlikely before the country’s next general election.

Retail gambling accounts for approximately three-quarters of Italy’s gambling market, valued at more than €21 billion. The proposed framework would establish rules covering network size, outlet density, opening hours and distances from sensitive locations.

Meanwhile, judicial decisions are increasingly shaping the sector’s operating environment. Italy’s Council of State upheld a €100 weekly cap on cash and non-traceable top-ups at physical outlets serving online gambling accounts. 

It also confirmed the prohibition on withdrawals at these locations but overturned a blanket ban on internet-connected devices, ruling that the restriction was disproportionate.

The absence of comprehensive legislation is creating difficulties for businesses operating across online and retail channels. Industry representatives have highlighted the challenge of managing online licences with longer terms alongside retail concessions that are extended annually. 

Italy’s online gambling sector is also experiencing increasing regulatory complexity, which industry executives believe is accelerating market consolidation. 

Larger operators may be better positioned to absorb compliance costs, while smaller businesses could face greater pressure to merge or exit the market.

For iGaming businesses, the situation highlights the importance of monitoring court decisions, adapting compliance procedures and maintaining flexible operational strategies. 

Clearer legislation will be essential to support investment and establish consistent requirements across Italy’s online and land-based gambling sectors.

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