Italy has had an interesting relationship with gambling. It has not been an easy relation, but one that has evolved to benefit both consumer and business owner, and to placate the somewhat irritable nature of the government. Today, Italy's online gambling segment is booming, and despite some extensive restrictions in the advertising space, Italy is as welcoming a place to casinos as any country in Europe can be.

While some restrictions are observed, the country is still a beacon of iGaming with some of the world's largest gaming brands flocking readily to the country. Italy began its quest towards legalisation in 2006, but brick-and-mortar casinos have been available in the country since 1917. 

How are online casinos regulated in Italy?

To regulate the burgeoning online gambling industry, Italy had to come up with a way of ensuring that it can oversee operators that enter the country and force them to comply with regulations designed to protect consumers.

That is how the Amministrazione Autonoma dei Monopoli di Stado was born with the sole purpose of fine-tuning the gambling industry and allow casinos, sportsbooks, bingo halls and all other gambling venues an opportunity to operate in the country while contributing to society in the form of taxation and various fees.

It wasn't until 2007 that the industry decided to go big and so did the regulator which enacted a number of changes allowing it to regulate local casino sites. To do so, the AAMS as the watchdog is known for short, created a framework that enabled online casinos to exist.

As part of the licensing conditions, any website willing to operate on the Italian market would need to adopt an '.it' domain and personalize its offer for the gambling market in the country, with 888 and bet365 both entering the market and offering a quality online product. 

Italy appeals to gambling brands for its versatile and fairly welcoming market. While localization in the market is an absolute must, and websites must be willing to undergo a strict vetting process, suspend bonuses and quit advertisement, the market is still doing very well in the country.

Casinos in the country continue to grow under the aegis of AAMS, and despite somewhat restrictive advertisement rules, casino online aams have had an easy time, even during the pandemic. This is not to say they have failed to meet consumer protection standards – just the opposite. 

Yet, interest in Italy's online casinos has been unflagging over the years, and it has continued to pick up at a good pace. 

How can you play online casinos in Italy?

Participating in online gambling in Italy is accessible and in fact, very easy to get into. All that you need to do is meet the legal age, which is 18 years as per current legislation. While meeting the legal age is a prerequisite for participating in online gambling, there are other factors to consider.

Italians who wish to play at a licenced online casino in the country must comply with AML and KYC checks, which are an established part of the operation of any casino. As part of such checks, players must provide a proof of address and a proof of identity. 

Italian operators can also check for affordability, that is, whether a player can afford to spend a specific amount on gaming.

Online casinos taxation

Taxation in Italy is not very mild when it comes to the iGaming vertical, but despite the government's decision to raise the tax levies operators have opted to stay in the country. In 2019, the government issued a proposal to increase the overall tax on online casinos to 25 per cent, one of the heftiest in Europe.

Despite these regulatory headwinds, operators such as 888 and bet365 have continued to operate posting only a modicum of the drop in their operating results and net profits throughout 2020. Betting tax has also been increased as of January 1, 2019, with sports betting operators now paying 24 per cent of their gross gaming revenue (GGR) a rather steep figure.

The tax hike coincided with another move known simply as the Dignity Degree which introduced restrictions as to the reach and scope of gambling advertisement and suspending most partnerships between gambling firms and sports clubs.

Toughening the stance on advertisement

The Dignity Decree was a subject of heated debated in 2018 with operators appealing authorities not to enforce a measure that would effectively restrict sports clubs' ability to generate revenue. 

Yet, the Dignity Decree was promulgated and came into effect on January 1, 2019, introducing a blanket ban on advertisement and sponsorship opportunities. In other words, online casinos today cannot advertise using any media to get the word out.

This includes physical banners, promotions and targeted online advertising. For all intents and purposes, online casino ads are dead in Italy, although the companies have been able to adapt themselves and have channelled their customer base loyalty to generate new leads and keep adding players.

Final word 

Italy's climate regarding online casino regulation is not the mildest, but operators have been able to acclimatize themselves without seeing too much of an issue. Brand leaders in Italy, of course, have years of experience and the resources to remain adamant in the face of even sterner regulations. In any eventuality, the heightened consumer protection measures may be bad for up-and-coming businesses, but they still allow Italians to play at some of the best online casino brands in the world.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk/

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