Italy raises iGaming license fees to €7 million

The country’s government and regulatory authorities are currently conducting the “Reorganization of Gambling,” which supposes implementing an updated casino and betting legislation aiming to improve the industry landscape in the country. And while changes in bonus calculations and mechanisms of coping with palpable errors in odds were perceived positively, the news about the increase in licensing fees didn’t cause delight among the iGaming operators. Italy is aiming to raise the payment to an unprecedented level in the European Union, as receiving the AAMS certification will cost companies €7 million.

New regulations to increase trust & fairness

The Italian gambling industry has been rapidly developing during the last decade, and the rise in fees is conditioned by the completely new landscape. The previous price stood at €200,000, so the operator’s dissatisfaction can be easily understood. According to the ADM regulations, all the licenses working on the country’s territory will expire by the end of 2024, and gambling companies will have to pay more to continue working legally.

At the same time, online casinos operating from abroad are not bound by the new regulations, leading to predictions that no AAMS casinos will become increasingly popular in the country. The new law will significantly affect the industry within the country, and smaller operators would possibly leave the industry since they won’t be able to afford such high payments.

Other aspects of regulatory framework

In addition to the new license cost, the Italian iGaming market will witness some more changes. First, all operators will have to pay 3% of their GGR annually, implying increased gambling taxes in the country. AAMS, the main regulatory authority, also pays special attention to safer gaming policies. Therefore, all casinos and sportsbooks must invest 0.2% of their overall revenue into promoting a responsible approach to this risky entertainment. In addition, they must set deposit limitations for customers and inform players when they are recommended to stop gambling and switch to other activities.

Huge iGaming groups will also face limitations on the number of licenses they can hold. No more than five certifications are allowed per one company. Strict suitability criteria are applied, so every operator will be checked. All these changes are initiated to ensure that gambling and betting providers in Italy provide the best conditions to their customers and face fair competition.

Benefits of the gambling legislation update

Italy is known for its strict gambling regulations, which are regularly changes to ensure industry transparency and fairness. Many experts consider the rise in licensing fees advantageous for the entire sector. This solution will help reduce the number of doubtful operators – since iGaming companies will be charged significant sums to prove their reliability, only reputable casinos and bookmakers with high ratings will be able to afford it.

Challenges of the new law

According to regulatory authorities implementing the new licensing fee, the update won’t significantly affect the industry competitiveness. However, this issue still raises concerns in the country. The high certification cost will result in many operators’ inability to cover such expenses and force them to leave the Italian market. The entire sector will be limited to a few giant operators, creating monopolies in the iGaming sphere. Italy already boasts one of the strictest gambling regulations in the European Union, and the update will make them even more severe. This approach can lead to a rise in illegal gambling activities and rapid evolution of the black market, which is hardly what the government aims to eventually get.

Overall, the legislation is pretty controversial, but the Ministry of Finance has already approved the decision. All licenses obtained beforehand are valid until the end of 2024, and it’s still unclear how many operators will afford to renew them in the following year. ADM/AAMS have already mentioned their goal of reducing the number of iGaming companies operating in the country, so Italian risk seekers may possibly have a smaller choice of online casinos and sportsbooks in the near future.

The final word

The new Italian iGaming regulation will come into force in the following months, and operators will face stricter conditions in 2025. License fee updates to €7 million aim to improve the industry landscape in the country and provide users with even better conditions. However, this decision will significantly lower the number of operators in Italy. At the same time, ADM launched even stricter legislation for all market players, including increased control over responsible gambling policies and ensuring transparency. These changes raise a lot of disputes in the market and are still under discussion, but most aspects have been already approved.