In November 2025, Italy underwent a "surgical" reform of its online gambling market. With the new franchise system taking effect, the original hundreds of operating brands were compressed to only 52, transforming the market overnight from a "free-for-all" to a "giant's game." This drastic change forced small and medium players out of the market, while financially robust industry giants entered a new era of consolidating their positions.
Core of the Reform: Exorbitant License Fees and "One License, One Domain Name"
The core measures of this reform are extremely clear. First, the cost of licenses soared from about 200,000 euros to 7 million euros, in addition to millions of euros in operational security deposits. Think about it, this is a significant expense for large groups, but it's a "disaster" for small and medium operators. Furthermore, the new regulations strictly enforce the principle of "one license per domain name," effectively erasing the operators' past strategies of covering the market through multiple sub-brands. Industry veteran Christian Tirabassi pointed out that this forced operators to cut brands, merge, or reorganize. Simply put, the new rules use high barriers to discourage small players and create a "more manageable" market.
Market Reshaping: From Full Competition to Oligopoly
The results of the reform were immediate. According to comprehensive industry information from PASA's official website, 46 operators ultimately obtained 52 new licenses valid for nine years, most of which were divided among long-established giants in Italy like Flutter Entertainment (owning Sisal, Snaitech, etc.), Bet365, and Entain. The market quickly moved towards consolidation and oligopoly. Lawyer Quirino Mancini bluntly stated, "Now, basically only large companies have the capacity to operate in Italy." Under this structure, consumer choices decrease, competitive vitality declines, but compliance and product standards may be forced to improve. Some internationally renowned brands such as Betway and Unibet even chose to abandon the Italian market outright.
The Dilemma and "Workarounds" of the Advertising Ban
An interesting contradiction is that while Italy raised the market entry barriers, it still maintained the nearly comprehensive gambling advertising ban since 2018. This is considered by the industry to be a major risk of pushing players towards the black market. Mancini criticized that the government wants to strengthen control but refuses to provide legal operators with tools for attracting traffic. However, where there's a will, there's a way; many operators found regulatory loopholes. For example, by changing the suffix of websites promoting real money gambling from ".it" to ".news" or ".sport," they can legally offer odds comparisons, sports news, and other "auxiliary services," thereby indirectly promoting their brands. This has turned advertising regulation into a "cat-and-mouse game."
Future Outlook: Omnichannel Dominance and Ongoing Challenges
Looking ahead, in an environment of strict advertising control, operators with offline physical stores will have a natural advantage as they can use in-store signage for promotion. Purely online operators, however, face greater pressure. The next critical point will be the tender for terrestrial gambling franchises expected in 2026, but its progress is filled with uncertainties due to negotiations between central and local governments. Despite dramatic changes, Italy remains one of the largest online gambling markets in Europe, with total gambling revenue (GGR) expected to exceed 5.2 billion euros in 2025. Whether this reform ultimately brings a healthy innovation platform to the market or cements the long-term power of giants will depend on the authorities' next steps in advertising policy and combating the black market.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
