Italy to Launch National Cybersecurity Shield Against Illegal Gambling

Italy is preparing to overhaul its defences against illicit gambling activity, with the Ministry of Economy and Finance (MEF) outlining plans for a nationwide “cybersecurity shield” to be introduced under the upcoming Budget Law.

The initiative, first reported by Italian gambling news outlet AgiproNews, will oblige all businesses that provide public internet access to install anti-illegality software on devices including PCs, kiosks, and tablets. The system, jointly developed by Italy’s Customs & Monopolies Agency (ADM) and the state-owned digital services provider SOGEI, will be programmed to automatically block access to unauthorised gambling domains.

“The software will be made available for download to all operators and relevant authorities, creating a national safeguard against illegal gaming domains,” AgiproNews reported.

ADM is set to lead the multi-stakeholder rollout, drafting the implementing regulations and coordinating with the Guardia di Finanza to conduct inspections. Operators that fail to comply will face financial penalties, while more severe sanctions, including potential criminal charges, will apply if devices are discovered operating in “closed browsing” mode, a configuration designed to channel users exclusively to illegal betting sites.

The measure follows a recent ruling by Italy’s Constitutional Court, which invalidated the Balduzzi Decree’s blanket ban on gaming devices in public spaces. The court judged the restrictions to be excessive and overly restrictive of business freedoms. Nevertheless, ADM has reiterated that “totems” and closed-circuit devices intended solely for gambling will continue to be prohibited.

For the MEF, the reforms are not just about enforcement but also about protecting a sector that is economically vital. Italy’s gambling industry is estimated to generate €21 billion in gross income, with around €8 billion of that flowing into state coffers each year through duties and taxes.

The introduction of new online safeguards is seen as a key component of the government’s updated licensing framework, which requires operators to pay €7 million per licence. To date, ADM has confirmed the approval of 46 applications.

Officials emphasise that the Italian gambling market is in transition. Already the fourth-largest regulated gambling market in Europe, its online sector alone is now valued at approximately €1 billion annually, with rapid growth underscoring the urgency of improved digital protections. As part of the reforms, licensed operators will also be bound by a new compliance charter obliging them to provide responsible gambling tools. These include features to help players control their spending and gaming time, as well as in-play warnings designed to flag high-risk games.

Despite the reforms, the black market continues to pose a serious challenge. The European Gaming and Betting Association (EGBA) estimated that Italy lost roughly €1 billion to illegal activity in 2023, with offshore platforms exploiting strict advertising rules introduced under the Dignity Decree, which banned sponsorships and gaming promotions. The restrictions have created fertile ground for unlicensed “quick-deposit” skin gambling sites, many of which are hosted overseas.

The Meloni government has indicated its intention to dismantle blanket advertising bans and replace them with a modernised framework for marketing and sponsorship. A formal legislative mandate is expected to be submitted to parliament later this year, with input from Serie A, Italian broadcasters, and the Ministry of Sports. Ongoing negotiations are being led by Sports Minister Andrea Abodi and Serie A president Ezio Simonelli.

At the same time, structural changes to the land-based gambling sector have been delayed. The second phase of the gambling reorganisation has been postponed until August 2026, with the government citing protracted negotiations with regional administrations and ADM’s priority focus on the Lotto Italia tender, recently awarded to a consortium made up of Brightstar, Allwyn, and Novomatic.

Key issues still to be resolved include compensation packages for provinces and municipalities hosting gaming facilities, the design of new licensing frameworks for franchise networks, and a potential overhaul of land-based gambling taxation. These fiscal and regulatory questions are expected to dominate the political agenda over the coming year.

Officials describe 2025 as a year dedicated to regulatory revisions and settlements within Italy’s gambling sector. By contrast, 2026 is expected to be a year of technical upgrades and final adjustments, both online and in land-based gaming, as the state moves forward with a policy shift intended to recognise the industry’s economic importance.

Italy’s challenge now lies in balancing multiple priorities: safeguarding billions in state revenues, strengthening oversight of a rapidly expanding digital market, resolving disputes with regional authorities and franchise operators, and offering Serie A and national media new opportunities after years constrained by the Dignity Decree’s advertising blackout. Whether the government’s proposed “cyber shield” succeeds in blocking the advance of the black market will provide the first real measure of the MEF’s new regulatory regime.

By fLEXI tEAM