As the licensing threshold increases and license fees rise, the Italian online gambling market is undergoing significant consolidation, with an expected half of operators being eliminated. This trend is not accidental, but a deliberate result driven by regulators.
On May 30, the Italian Customs and Monopoly Agency (ADM) officially concluded the application process for the new round of remote gambling concessions. Although the final list of licensees will be announced in the summer, it is widely expected that this process will reshape the ecology of Europe's largest gambling market.
Moreno Marasco, chairman of the LOGiCO online gambling association, had predicted in an interview with "Sigma" that the number of active operators in the market would significantly decrease. It is understood that unlike the previous round, which attracted 93 companies, only about 50 companies submitted applications this time. The final winners are expected to be only about 33, meaning that the current 81 remote operators will be reduced by about 60%.
Marasco openly stated: "Although the market size and revenue continue to grow, this round of reform will still bring significant contraction and completely change the competitive landscape."
High Thresholds Accelerate Consolidation
One of the core factors of this consolidation is the significant increase in entry thresholds by ADM. The most notable is the initial license fee of 7 million euros per brand, which deters many small and medium-sized operators.
Christian Tirabassi, founder and M&A consultant of Ficom Leisure, pointed out that this is intentional. "In the past, some small companies could share in a market worth billions of euros with an investment of only 250,000 euros. Now, regulators are trying to eliminate these 'small players' to make the market more standardized and professional."
He stated that this round of license applications focuses on selecting large companies with sufficient capital, a complete compliance system, and the ability to strictly fulfill anti-money laundering responsibilities. "You cannot expect a small business that skips scrutiny to save 5,000 euros to operate such a sensitive industry."
Revenue Concentrated Among Top Companies
The new system after the reform is not only costly but also carries a significant tax burden: online sports betting and online casinos must pay 24.5% and 25.5% of GGR tax, respectively, plus an annual fee of 3% and up to 1 million euros in responsible gambling special expenses.
This stricter system has accelerated the industry's mergers and consolidations. Ficom has been involved in several mergers and acquisitions of small and medium-sized enterprises, indicating that the future market will be dominated by large, omnichannel, multi-category enterprises. Tirabassi predicts: "Ultimately, no more than 30 to 35 companies will remain in the market, but they will control over 80% of the remote gambling revenue."
He believes that this reform has made the license fees "return to reasonableness" and pushed the entire industry towards high professionalism. "This is a 'natural selection' style of consolidation."
New System Forces Industry Modernization
Meanwhile, the Italian government is promoting broader gambling system reforms, including not only the online licensing system but also the management of physical gambling venues. Although opposition from local governments has delayed the reform of the land-based market until mid-2026, its ultimate goal is very clear: to unify regulatory standards, control cash flow, introduce mandatory identity verification, and promote self-exclusion mechanisms.
In terms of online gambling reform, the government plans to introduce multiple player protection tools, including mandatory deposit limits, gaming time restrictions, and automatic behavior warning systems. Young users aged 18 to 24 will face stricter game controls, a first in Europe.
Italy legalized gambling as early as 2006, making it one of the earliest regulated markets in Europe. In 2024, its total gambling revenue reached 21.6 billion euros, a year-on-year increase of 4.4%, of which online gambling accounted for about 5 billion euros.
Giants Preemptively Layout: Flutter Bets on Snai
The market consolidation has attracted high attention from the capital market. In 2023, Flutter acquired Playtech's Snaitech for 2.3 billion euros, not only acquiring a strong brand but also laying the foundation for integrating assets such as Sisal and PokerStars. Jefferies analysts estimate that this acquisition will help Flutter control 30% of the Italian gambling market in the future.
According to 2023 data, Flutter's brands already hold a 15% GGR share in the Italian online gambling field, with Snaitech accounting for 10%.
National Lottery Renewal Highlights "Financial Power Decides Everything"
It is worth mentioning that during the entire reform process, the ownership of the Italian national lottery license has never wavered. The LottoItalia consortium led by IGT successfully renewed with a bid of 2.23 billion euros, defeating competitors including Flutter. This bid was more than double the starting base price, further illustrating the current Italian gambling market—money and resources are the core thresholds for entry.
