Key Moments:
- Italy will reduce licensed online betting sites from 407 to 52 starting November 13
- The ADM has banned ‘skin’ websites, restricting operators to one site per license
- Players must set personal deposit and betting limits as part of new regulations
Online Gambling Market Faces Drastic Restructuring
Italy’s Customs and Monopolies Agency (ADM) has announced a major overhaul of the country’s online gambling system. The number of legal betting sites will drop sharply from 407 to just 52. Under the new system, 46 operators will hold licenses. A few will manage multiple brands, such as Flutter Entertainment, which controls both Sisal and Snaitech.
The reform targets the growth of third-party affiliates, also known as ‘skin’ websites. These sites had been allowed to resell products under licensed operators. The new policy bans all skin sites and limits each license to one official website starting November 13. This change will coincide with the relaunch of the regulated market. As a result, over 350 skin sites will close, leaving only a core group of 52 active sites – comprising 315 offered by domestic companies and 92 operated by international entities.
| Previous Number of Sites | Post-Reform Number of Sites | Licensed Operators | Banned Skins |
|---|---|---|---|
| 407 | 52 | 46 | 350+ |
Financial Impact and Market Concentration
Italy’s vibrant betting market has consistently favored large-scale operators, benefiting from a strong cultural enthusiasm for football and boasting an annual gross income of about $21 billion. Ranked as the continent’s fourth-largest, the sector demands considerable commitments from its participants – operators have been required to pay £7 million for each license and contribute approximately €8 billion through taxes and related levies.
The latest licensing round, which will conclude on November 12, has already generated €365 million in revenue for the state treasury, surpassing official expectations set by the Ministry of Economy, which ranged from €300 million to €350 million.
Despite these figures, the climate remains challenging for smaller organizations striving to compete with established giants, including Flutter, Entain, bet365, and Lottomatica. Strict marketing regulations – such as a ban on sports sponsorships – further constrain visibility for new market entrants. Fabio A. Bufalini, Stake’s Country Director, highlighted these challenges at the SBC Summit Lisbon, stating,
“We are a newcomer in terms of brand. Stake is a huge brand globally, but Italy, it seems we will start from scratch, and honestly it will not be easy because there is an advertising ban, and it’s not easy for a newcomer to operate and take the right action to establish.”
Potential Openings for Smaller Participants
With the prohibition of skin betting, recent reforms may create a more navigable marketplace for new and smaller operators, as the competitive field shrinks from 407 to 51 licensed companies. Instead of facing a crowded market flooded by affiliates, new entrants will directly challenge established licensees.
Although stringent advertising restrictions persist, some larger operators, like bet365 and Betsson, have adapted through partnerships with media companies and football clubs. For newer entrants, the newfound transparency in competition – knowing who the licensed participants are – may assist in more focused strategic planning.
Upcoming Regulatory Changes for Players
In addition to the site reduction, Italian bettors will encounter further regulatory adjustments from November 13. Customers will be required to accept updated terms and conditions, part of which mandates the setting of personal caps on both deposit amounts and per-bet spending.
Operators are obligated to provide a clear on-site notice linking to a form where users establish these limits. Bettors are given six months to comply; failure to do so will result in lost betting privileges with Italian-licensed bookmakers. However, accounts can be reactivated within three years for those wishing to return.
According to an ADM statement, “The reform signals a turning point for the online gaming market, which, also in response to growing public concern, aims to raise safety standards for both operators and players.”
- Author
Daniel Williams
