Italy's The Online Gambling Place To Be
Published: Tuesday, December 19, 2006 Online-Casinos.com
ITALY'S THE PLACE TO BE
With a new and more enlightened approach to online gambling, the industry's biggies are piling in.
Italy's astonishing but very welcome about-face on Internet gambling has caught the attention of major industry companies, with reports of household names in the business all vying for a slice of the Italian action by applying for some of the estimated 17 000 licenses the Italian government is to issue.
Turning its face away from an aggressive prohibitionist approach as recently as October this year to a policy of regulation and taxation, Italy provided a new direction for companies looking to fill the vacuum created by the banning of US online gaming financial transactions created by the UIEGA.
The Italian government has announced that it will auction off 17 000 licences for betting shops, kiosks, casinos and online casinos and sportbooks. Initial reports indicate that Betfair, William Hill and Ladbrokes are all among the first to seize the opportunity.
The potential for the new market is still a matter for research and estimation. Nilay Patel, corporate finance manager for William Hill group told Jackpot UK that the Italian decision was essentially about creating a new market or converting an illegal market into a legal market. "We don't have the facts, figures and information on which to make sensible estimates of the potential size of the opportunity," he said.
"Until we actually have a couple years of operating experience in these markets, we really don't know how they're going to develop," he added.
Some of the U.K’s largest operators already appear well placed to take advantage of the new laws across Europe. Gala Coral already operate an Italian-language site and a betting shop in Genoa, William Hill have entered into a venture with Spanish firm Codere and Ladbrokes completed a deal with Italian firm Pianeta Scommesse back in August, as well as buying three betting shops in Turin last month.
Many other countries, such as Greece, Ireland and the Czech Republic have open minds and will undoubtedly watch the effects of the law changes, basing their own decisions on its implications. Spain is also set to follow Italy, with the various Spanish regions authorised to set up their own regulatory structures as they see necessary. In essence, Spain will allow gambling in regulated locations, including online casinos, and will grant licences for up to five years.
Overlooking all of this is the European Commission, who face the tough job of ensuring the changes in gambling laws, however flexible or stringent, do not interfere with healthy competition. According to a ruling by the EU’s highest courts, member states may place controls on private gambling operations, but they must be "non-discriminatory, proportionate and consistent".
