Italian Lawmakers Delay Online Gambling Reformation Plans
Changes to Italy’s online betting environment have been delayed due to constraints caused by the pandemic, gambling licenses will be extended until late 2022. While July 31st was the expected release date, government officials have now confirmed that the reformation plans are delayed until the end of 2022. While gambling firms wait for the news, the gambling authority has temporarily granted extended licenses for the foreseeable future.
Italian lawmakers have halted plans to reform online gambling laws in an effort to adhere to budget constraints caused by the pandemic. By next year, the government aims to press forward in it’s plans to make significant changes to online betting platforms. ©DomyD/Pixabay
The customs and monopolies agency have masterminded the initial proceedings as well as its eventual delay, as they currently have executive power on whether the go-ahead is given, all further announcements will come from their offices. A subsequent meeting took place not long after the delay was announced, and once it had been completed, the official decision to extend gambling licenses was also confirmed, much to the delight of Italian bookmakers.
Former Italian Prime Minister Giuseppe Conte is reported to have been closely involved with the decision eventually made by the competition authority. He was a big advocate for delaying the plans to ensure that the reforms could go through properly without negatively affecting online betting firms during the pandemic. The government offered significant financial support to the betting industry during 2020, a move that enabled the security of many firms moving out of the slump in economic activity.
The official legislative measure is titled the Cura Decree, an official document allowing betting platforms to extend their licenses with emergency powers. The Italian government has received continental praise for its wide support measures in place for the gambling industry. Unlike many other European nations, they have enabled the continuation of betting operations without putting business operations at risk due to financial constraints.
Some of Italy’s most well-known betting brands rely on this bill for clarification on the future, including Eurobet, Sisal and SKS365. October 31st is the preliminary cut-off for the Cura Decree, meaning that any government financial support will end, hopefully, by then, almost all restrictions will have been lifted, and land-based casinos can once again thrive. COVID recovery has already begun and it’s expected that businesses will survive without government assistance from this point on.
Italy Set to Proceed with Significant Reform
The Italian government will not prevent the ending of government assistance from October 31st, and now that the pandemic and its economic effects are slowing down, the next phase can begin. Despite some backlash from smaller firms, the Italian government will push forward in its budget reformation plans. Some of the new legislation finer details have been misconstrued by the media, resulting in plenty of confusion.
The Budgeting Laws will greatly affect the license application process; simply, this will make it harder for previously unlicensed firms to obtain one due to several layers of proofing and government vetting required for each applicant. 120 betting licenses will be available in 2022, and a four-year license costs on average €200,000. It is a significant amount, but it’s essential in Italy as unlicensed bookmakers are heavily penalized by the national gambling authority.
The aim of the new license changes is to inspire greater competition in the industry. While the land-based casino scene has remained dormant while COVID restrictions prevented their reopening, the competition authority noticed a need for a competitive culture in the industry to enable smaller firms to survive in an industry dominated by larger international firms.
European Commission Not Impressed with Italian Changes
Unsurprisingly, the European Commission have expressed their disappointment with the Italian gambling authority for their proposed reformation of advertisement regulations. The European Commission has stated that the changes do not comply with EU Consumer Protection Laws. In a strange report, submitted by an EU spokesperson, he noted that the advertisement changes were not a suitable prevention method, and there are much better ways to stop problem gambling.
Strict advertising regulations have been in place since the start of Euro 2020, of which Italy has performed extremely well and could potentially go on and win the tournament. They are one of the only European nations to have prevented gambling associative advertising with the competition as they are concerned for younger audiences.
The European Gaming and Betting Association are adamant about the illegality of changes that apply to the rest of the European Union. They have called on the Italian Gambling Authorities to submit their draft reforms so they can critically assess the likeliness of their implementation. It is currently unclear whether the EU has the power to veto these reforms or whether the Italian government can simply ignore the demand and continue pressing further with these proposals.
