Italy receives applications from 46 operators in online gambling overhaul

Italy has cleared 46 operators in the first phase of its sweeping overhaul of online gambling regulation, marking a major step toward the launch of a stricter, more consolidated digital gaming framework.

Each approved operator will pay a €7 million ($8.19 million) fee for a licence, comprising €4 million up front and a further €3 million due at full system deployment, expected by March 2026.

The Ministry of Economy and Finance (MEF) confirmed it has met its €350 million ($409.62 million) licensing revenue target through the current tender, with 52 concessions available, according to the country’s gambling regulator, the Agency of Customs and Monopolies (ADM).

The reform introduces a 35-fold increase from the previous licence fee of €200,000 and comes as the government seeks to modernise the industry, tighten compliance standards, and reduce market fragmentation.

This is not just an administrative reshuffle, the ADM said, defending the sharp fee hike as necessary to maintain financial stability, protect players, and align with international regulatory standards.

The deadline for existing licence holders to transition to the new regime is set for September 17, 2025, although an extension to September 30 is possible. Operators not admitted to the process must cease all activities by August 17 and return user funds. Weekly reporting of account activity became mandatory on July 8, with non-compliance subject to immediate suspension.

Operators will be required to launch under the new framework within six months of receiving their licence. During this period, legacy systems will temporarily coexist with new platforms until full compliance is achieved by March 2026.

As part of the technical overhaul, all licensed operators must integrate with ADM’s central system and meet enhanced digital security and data protection standards. Multi-brand “skins” are banned under the new regime, meaning each licence corresponds to a single domain - a change expected to reduce the number of active gambling websites in Italy from around 420 to approximately 50.

Italy’s online gambling market included 81 licensed operators in 2024, generating €5 billion in gross gambling revenue. A joint report by research group Cgia Mestre and industry association Astro estimated that the top 30 firms already account for 94% of the market. Analysts expect further consolidation as smaller operators exit.

Among the approved applicants are industry heavyweights such as Flutter Entertainment, which includes Sisal, Snaitech, PokerStars, Betfair, and Sky Bet Italia, along with Lottomatica, IGT, Novomatic, Eurobet, DAZN Bet, LeoVegas (owned by MGM), Betsson, and bet365.

Mario Lollobrigida, head of ADM’s gaming division, pushed back against concerns about the high fee deterring applicants. “Given the sector’s continued growth in 2023 and 2024, and a 10 percent increase in Q1 2025, it would have been shortsighted for operators to stay out,” he said. “If anything, we could have set it even higher.”

However, critics remain vocal. Industry group LOGiCO accused ADM of “engineering the market’s competition” by pricing out smaller firms. ADM has not denied the consolidation goal, citing the need for responsible growth.

Additional regulatory changes are underway. The government has launched negotiations with regional and municipal authorities to reform Italy’s fragmented land-based gambling laws. It is also reviewing the Dignity Decree - a 2018 law that imposed a blanket ban on gambling advertising. A new committee, involving Serie A, CONI, and media stakeholders, has been tasked with drafting a modern code of conduct balancing commercial freedom with public health priorities.

The reform package is expected to culminate in March 2026, when the final phase of the system goes live and financial guarantees are unlocked following ADM’s post-transition checks. Only operators that successfully adapt to the tighter regulatory landscape are expected to remain active in Italy’s digital betting market.