Italy’s iGaming Reform: A Detailed Review of the 2024–2025 Regulatory Revolution

Italy is one of the biggest places in Europe to gamble. According to forecasts for 2024, gross gaming revenue (GGR) will be more over €21.6 billion, with roughly €5 billion coming from online gaming and €16.5 billion from land-based operations. The Italian government had to change the rules because of the size of the market and the fact that there were so many different operators. The reform, established by Legislative Decree 41/2024 (the “Reorganisation Decree”), comes from Delegation Law 111/2023 and aims to modernise the sector, combat illegal gambling, increase tax collection and protect customers.

Legislative framework and timeline

Fragmented regulatory landscape: Italy didn't have a single gambling law for decades; instead, it relied on a number of decrees and provincial rules. This fragmentation has made things unclear for operators and caused them to have to get their licenses extended over and over. The Delegation Law 111/2023 gave the government the right to change the rules for both in-person and online gaming through legislative decrees.

Italy has gradually made it harder to advertise gaming. The Balduzzi Decree (Decree Law 158/2012) made it illegal to advertise games with cash prizes on TV, radio, or in print that encourage gambling or involve minors. Ads must show the chance of winning and warnings about addiction. The 2016 Stability Law made these rules even stricter by banning ads for cash prize games on regular radio and TV shows from 7 a.m. to 10 p.m. and on shows for kids. Pay-TV channels and lotteries are excluded from these rules. The Dignity Decree (Decree Law 87/2018) made it illegal to advertise or support games or bets with cash prizes in any media.

New licensing regime and market consolidation

Licence cost and structure

The licence fee is the most noticeable change: each nine-year concession costs €7 million, which can be paid in two installments. Licensees also have to pay a 3% yearly fee on their net gaming revenue and put 0.2% of their GGR (up to €1 million) towards programs to promote responsible gambling.Groups can only have five licenses at a time. These conditions have made it more harder to get in: the cost in 2018 was only €200,000.

Single‑domain policy and elimination of skins

The new plan says that each license only covers one .it domain. This means that people can no longer run several "skins" (sub-brands) under one license. Operators must use an Italian top-level domain and show their logo on their website. This adjustment would cut the number of active sites from more than 400 to about 50. Large companies will need to get numerous licenses if they want to keep their branding separate.

Technical and financial criteria

To be eligible, applicants must be registered in the European Economic Area, show that they made at least €3 million in revenue in the last two years, present substantial bank guarantees, and follow strong AML and responsible gaming rules. They also need to use secure APIs and AI-driven compliance technologies to connect their systems to ADM's central monitoring platform.

Market contraction and M&A

The number of licensed operators is likely to drop from more than 80 to about 30–35 because of the high costs and tight requirements. Experts in the field, like Davide Pellegrino and Christian Tirabassi, say that this is an intentional program of "natural selection" meant to get rid of operators who don't have enough money. According to iGaming Business, four or five big companies will control more than half of Italy's online GGR. Mergers and acquisitions are already changing the game. For example, Flutter Entertainment bought Snaitech for €2.3 billion in 2024, bringing together multiple businesses under one umbrella.

Taxation and fees

These fiscal measures aim to raise government revenue and fund compliance and responsible‑gaming initiatives. The Ministry of Economy expects to collect around €350 million in licence fees alone.

Responsible gambling and player protection

Mandatory deposit/time limits and self‑exclusion

When players register an ADM-licensed account, they have to set weekly limitations on how much money they may deposit, spend, and time they can spend. Operators must show reminders and let gamers lower their restrictions right away. Increases don't take effect for seven days. Italy has a one-of-a-kind self-exclusion register (RUA) that lets players choose to be banned for 30, 90, or an unlimited amount of time. Operators must block these individuals and tell the ADM.

A new rule says that all current players must set personal deposit and wager limits by November 13, 2025. If they don't do this within six months, their accounts will be suspended. The measure is part of a "shield" for cybersecurity that keeps players inside their bounds and blocks domains that aren't licensed.

Youth‑focused protections and automated alerts

The change adds protections for athletes ages 18 to 24 that are specific to their age. When unsafe betting patterns show up, operators need to set up automatic warnings and make it harder for younger players to get in. There must be session timers, pop-ups indicating time and net-loss restrictions, and instructions about responsible gambling.

KYC and identity verification

Italy's digital ID system (SPID) must check new accounts. Operators can't take cash or anonymous payments. Every account must be linked to the player's tax ID and a payment method in the same name. You have 30 days to finish KYC or your accounts will be frozen.

Restrictions on cash deposits and anti-money-laundering regulations

Italy is nevertheless worried that cash payments made through retail "PVR" stores could help money laundering. Under the new rules, you can only deposit €100 in cash through PVRs each week. If you want to deposit more than that, you have to use an electronic means that can be tracked. Before accepting PVR cash payments, operators must check the players' identity. This limit doesn't apply to deposits to e-wallets, although they still have to follow normal AML rules (cash transfers are capped to €5.000).

Blocking banks and payments will only affect sites that don't have a licence. ADM is putting money into AI-driven surveillance to keep an eye on transactions and blacklist unlawful sites. If you break the advertising ban, you could get a punishment from the government that is 20% of the value of the sponsorship or advertising campaign, with a minimum of €50,000.

Advertising and sponsorship rules

Existing ban

Over time, Italy's rules about advertising changed. The Balduzzi Decree (2012) made it illegal to show ads for games with cash prizes on TV, radio, and in print if they encourage gambling, show minors, or don't warn about addiction. Ads must also show the chance of winning and risk warnings. The 2016 Stability Law made advertising even less free by banning it on regular TV and radio channels from 7 a.m. to 10 p.m. and on shows for kids. Pay-TV channels and national lotteries were given exceptions. The Dignity Decree (2018) went even farther by banning any advertising and sponsorship of games or bets with cash awards in all forms of media, including sporting events, print, broadcast, and online platforms.

Suggested changes

The restriction on advertising is being looked at again. Andrea Abodi, the sports minister, has suggested a draft Sports Decree that would allow gambling sponsorships again, but with a 1% tax on sponsorship earnings that would go towards improving stadiums and youth sports. Supporters say that the restriction has led to more unlicensed operators and cost Serie A clubs up to €100 million a year. However, health groups say that relaxing the restriction could make gambling more common. As of this writing (November 2025), the change is not yet complete. Italy may relax sponsorship regulations while keeping strong limits on advertising that targets consumers.

Problems with implementation and the technological transfer

Licensing process in multiple phases

There are various steps in the new licensing process. After the application period (March to May 2025), ADM does an administrative evaluation. Then comes the technical phase, during which operators must connect their platforms to ADM's systems and show that they are following the rules. By the end of July 2025, candidates must pay €4 million and put up €3.7 million in guarantees. Operators have six months to finish technical integration, and the final approval is due by November 12, 2025. This timeline is meant to make sure that the changeover goes smoothly by March 2026.

Operators who don't have a licence must stop doing business by August 17, 2025, close their accounts and give back any money they haven't claimed. After two months, any money that hasn't been claimed will be sent to the state. Starting on July 8, 2025, you must send in weekly account-balance updates. If you don't, you will be suspended right away. Before signing the new contracts, temporary business groups must change into limited businesses.

Cybersecurity and technical integration

The hardest part is connecting to ADM's main control system. Licensed platforms must send transaction data in real time and follow the strictest rules for data protection and dependability. AI-based compliance tools will look at betting patterns to find problems, and a cybersecurity "shield" will keep unlicensed domains from getting on public networks.

Effect on the Italian gaming market

Competition and consolidation

The changes are meant to cut down on the number of operators and give money to companies who are doing well. Analysts say that in a few years, 30 to 35 companies will have all the remote licenses, and four or five of them would control more than 80% of online GGR. Removing skins makes single-brand strategy and omnichannel operators more likely to succeed. Flutter Entertainment (Betfair, Snaitech, Sisal) and Lottomatica, two big companies, have already gotten the most concessions.

Effect on revenue and taxes

The government thinks that having fewer, bigger businesses will make tax revenue more stable. The tender has already brought in €365 million from people applying for licenses. By 2026, online GGR is expected to reach more than €5.5 billion. The combined market should also cut down on tax evasion in the black market. But large fees could make it hard for mid-sized businesses to compete, which could stifle innovation and limit customer choice. The ban on advertising is still pushing gamers into unlicensed websites. If sponsorship reforms are not paired with a regulated advertising structure, illicit operators may still have an edge in the market.

How well do consumer protection and AML work?

The new rules make consumer protection stronger by requiring deposit limits, self-exclusion mechanisms, ID checks, and payments that can be tracked. Age-specific warnings for young adults and AI-driven monitoring are new things in Europe. There should be limits on how much cash may be deposited each week, and people should have to declare it. Still, putting these systems in place costs a lot of money, and smaller businesses may have trouble following the rules, which could lead to more consolidation.

The land-based industry and changes that will happen in the future

The Reorganisation Decree includes online gaming, but changes to land-based gambling (casinos, AWPs, and betting shops) have been put off until mid-2026. These changes include uniform licensing, stricter location requirements, required ID checks, self-exclusion mechanisms, and a €100 weekly cash deposit limit. Stakeholders think these changes will follow the remote model, which will encourage consolidation and strong anti-money laundering (AML) regulations.

Editor's conclusion

Italy's iGaming reform is the biggest change to its gambling industry since it became legal in 2006. The government wants to make the sector more professional and stable by hiking license fees to €7 million, limiting operators to one domain, and putting in place strong AML and player protection rules. It is projected that the number of operators would drop by half, with bigg omnichannel firms like Flutter and Lottomatica taking over. The main goal is to protect consumers. Deposit restrictions, self-exclusion, ID checks, and AI-driven monitoring all work to lower the number of people who have gambling problems and commit financial crimes. But high entrance barriers may make competition and new ideas less likely, and the advertising restriction that hasn't been settled yet is still pushing some gamers into unlicensed operators.

In the future, the best operators will be the ones who can combine their online and land-based businesses, spend money on technology and compliance, and promote a culture of responsible gaming. The land-based reforms that are about to happen and the possible loosening of sponsorship laws will change Italy's gaming scene even more. As Europe's second-largest gaming market enters this new era, it might serve as a model for finding a balance between making money and protecting consumers. However, this will only happen if regulators, operators, and stakeholders handle the difficult transition well.