Italy’s Land-Based Gambling Reform Reaches Turning Point Amid Regulatory Friction

Italy’s long-anticipated overhaul of its land-based gambling sector has moved into a crucial phase, as technical negotiations intensify within the Unified Conference.

Policymakers are now working to reconcile national reform objectives with the entrenched authority of regional and municipal governments, setting the stage for a defining moment in the country’s gambling framework.

The proposed legislative decree, drafted in accordance with the 2023 tax law, has undergone examination by the Ministry of Economy and Finance alongside representatives from regional and local administrations. This marks the beginning of what is expected to be a highly complex negotiation process that will ultimately determine the structure and direction of Italy’s land-based gambling market.

While Italy has already implemented significant changes to its online gambling sector through Legislative Decree No. 41 of 2024, reforming the retail segment presents a far more complicated challenge. Governance of land-based gambling remains deeply decentralised, with local authorities retaining substantial control over licensing frameworks, operating hours, and restrictions on venue locations.

A central issue in the ongoing discussions is the high level of regulatory fragmentation across the country. Existing rules differ significantly between regions and municipalities, particularly in relation to minimum distance requirements from sensitive sites such as schools and hospitals. The proposed reform aims to introduce a more harmonised national approach, though critical elements—such as varying distance requirements depending on the type of venue—are still being debated.

Licensing structures have also emerged as a key area of contention. The draft legislation proposes adjustments to concession models and tender procedures, potentially leading to a reduction in the number of retail outlets and gaming machines in operation. Industry stakeholders have expressed concern that increased costs and tighter regulatory conditions could disproportionately benefit larger operators, placing smaller businesses at a disadvantage.

Warnings about potential market concentration are already surfacing. Geronimo Cardia, speaking on behalf of concessionaires, cautioned against reforms that might sideline small and medium-sized enterprises and accelerate consolidation within the sector.

Economic considerations are also under close scrutiny. Domenico Faggiani has indicated that revisions to the licensing system could lead to annual tax revenue losses exceeding €1.6 billion, while simultaneously putting up to 24,000 jobs at risk within a workforce estimated at around 50,000.

These concerns have been echoed in political circles. Riccardo Pedrizzi warned that, if not carefully calibrated, the reform could result in an oligopolistic market structure, ultimately restricting competition and diminishing overall fiscal returns.

The legislative process itself remains intricate and far from complete. Once consensus is reached at the Unified Conference, the decree will need to proceed through the Council of Ministers and relevant parliamentary committees, where additional revisions are anticipated before any final approval is granted.

At its core, Italy’s challenge is not merely procedural but structural. Striking the right balance between national uniformity and local autonomy—while safeguarding competition and maintaining tax revenues—will be critical in determining whether the reform brings stability to the market or ushers in a new period of uncertainty.

By fLEXI tEAM