Italian Gambling Industry Warns Regulatory Gridlock Is Fueling Growth of Illegal Market

Italy’s regulated gambling industry is facing a prolonged regulatory impasse that risks accelerating the expansion of unlicensed gambling operations, according to the EGP-FIPE, which raised its concerns before the Senate’s Constitutional Affairs Committee on Tuesday.

Representing gambling operators within the Italian Federation of Public Establishments (FIPE), part of Confcommercio, the association argued during the hearing that years of delayed reforms and fragmented local regulations have left the country’s legal gambling sector unable to evolve effectively.

Legal gambling market held back by fragmented rules

EGP-FIPE said the regulated gambling market has effectively been placed on hold due to repeated extensions of national gambling concessions combined with a patchwork of municipal and regional regulations governing the sector.

The association maintained that the lack of a comprehensive national reform strategy has created a regulatory standstill that prevents operators from properly planning and managing the retail network while simultaneously undermining measures intended to combat problem gambling.

EGP-FIPE President Emmanuele Cangianelli described the situation by stating: “The system is stuck between extensions and non homogeneous territorial rules. This block prevents serious planning of the network and weakens precisely the protection tools that one would like to strengthen. Without a coherent national framework, prevention loses effectiveness and the space for uncontrolled supply (the black market) grows.”

Local land-based restrictions questioned

The trade body also criticised several restrictions imposed by municipalities on land-based gambling venues, including mandatory distance requirements from sensitive locations—commonly referred to as "distanziometri"—as well as strict limits on operating hours.

According to EGP-FIPE, these measures have failed to meaningfully reduce gambling-related harm. Instead, they frequently shift gambling activity away from regulated retail venues toward online platforms or illegal operators, where supervision and consumer protections are significantly weaker or entirely absent.

Commenting on the impact of these restrictions, Cangianelli said: “The evidence is that where the physical offer is rigidly restricted the problem is not reduced, but moved. Play heads online or to the underground market, where control is nil. This makes territorial instruments little effective with respect to the declared objective and introduces heavy distortions in terms of legality and the sustainability of the authorised network.”

Calls for review of advertising restrictions

The debate surrounding gambling regulation has also been echoed by the Italian Football Federation (FIGC), which recently urged the government to revisit the country's stringent betting advertising rules.

Outgoing FIGC President Gabriele Gravina criticised Italy’s blanket prohibition on gambling advertising and sponsorships, introduced in 2018, arguing that the restrictions have proven “largely ineffective” in limiting underage gambling and illegal betting activities.

Gravina pointed to findings contained in a 2022 Parliamentary Commission of Inquiry report, which showed that both underage and illegal gambling continued to increase despite the advertising ban remaining in force.

National coordination seen as essential

During its presentation to the Senate committee, EGP-FIPE also highlighted the importance of expanding behavioural prevention initiatives that are either already available or currently being developed throughout the regulated gambling sector.

These include self-exclusion programmes, systems capable of monitoring player behaviour, and advanced technological tools designed to identify risky gambling patterns. However, the association warned that such initiatives cannot achieve their full potential without a coordinated national governance framework capable of aligning efforts across Italy’s regions and municipalities.

Cangianelli stressed the need for a unified strategy, stating: “A clear governance structure is needed. Regions may have a role, but within a shared national plan. Otherwise, partial interventions will continue to accumulate without solving the problem.”

Italy’s evolving gambling market

Italy remains one of Europe's largest regulated gambling markets and is overseen by the Agenzia delle Dogane e dei Monopoli (ADM). Over the past decade, the country has experienced rapid growth in online betting and gaming, while traditional land-based gambling venues have been subject to increasingly restrictive municipal regulations.

As part of a major overhaul of the licensing system introduced last year, the market underwent significant consolidation. By November 2025, more than 400 active gambling domains had been reduced to just 52 licences, replacing a highly fragmented marketplace with a far more concentrated structure dominated by a limited number of major operators.

The move is expected to create an oligopoly-style market in which gambling revenues become increasingly concentrated among fewer companies.

Despite the consolidation, Italy continues to rank among Europe's largest online gambling markets in terms of both turnover and tax revenue. As of November last year, licence fees generated approximately €364 million (US$424 million) in revenue for the Italian state.

By fLEXI tEAM