The Growth of Italy’s Online Casino Market

Posted by Harry Kane on Sunday, October 1, 2017

Italy’s banking issues have been widely discussed in recent times, but there are signs that this is finally coming to an end. As the nation’s economy rebounded, it was revealed that the value of bad debts in the system had declined by 18 billion Euros, representing the largest single decline since the Bank of Italy started to record data in 1998.

There may be even better news on the horizon for the Italian economy, with the government reporting that license applications will soon be opened for online casino operators.

This will expand Italy’s online casino market, creating the potential for additional tax revenues and sustained reinvestment into the wider economy.

The Latest Developments, and What They Mean for the Market

In total, an estimated 120 online casino licenses are likely to be made available by the end of September, as the government finally follow-up on a policy pledge first made back in 2015.

The distribution split of these licenses is likely to be interesting, with approximately 80 likely to be open to applications from new and independent operators. Conversely, the remaining 40 will be awarded to existing stakeholders that already have a defined presence in the marketplace, with successful applicants ultimately liable to pay an estimated fee in the region of 200 million Euros. These licenses will run until 2022, enabling firms to claim a viable market share and establish themselves effectively.

This represents a significant expansion of the existing casino market in Italy, which generated revenues in excess of £1 billion Euros (and a year-on-year increase of 25%) during 2016. With poker, e-sports, poker and even virtual bingo operators eligible to apply for a license, the level of the competition in the sector is also likely to become more intense and may ultimately translate into noticeable savings for customers.

This is sure to continue the impressive growth of the online casino market in Italy, while also driving incremental increases in the overall popularity of virtual sports betting and bingo sites nationwide.

What Else Should we Know, and How Will This Boost the Economy?

It is also hoped that the distribution of new licenses will boost the ailing online poker sector, which recently saw an annual decline of 10% despite the growth the wider, casino marketplace. Having already established a shared liquidity agreement with Spain, Portugal and France in an effort to boost the demand for online poker, it is hoped that the general expansion of the market will further help to achieve this goal.

In terms of the economy, there is absolutely no doubt that the granting of new licenses and the structured expansion of the online casino industry will provide a significant financial boost. The government will certainly benefit from the payment of application fees, for example, while it can also look forward to an increase in tax revenues over the course of the next five years. This capital can be reinvested into the economy, of course, which is crucial for a nation that has endured significant hardship during the last decade.