Online Casino AAMS Regulation in Italy
Since the Roman Empire, gambling activities in various forms have existed in Italy. Even though the laws of gambling in the country proved to be fair compared to other European countries, there was some bias. Only the National Horse Breeders Enhancement Society (UNIRE) and the Italian Olympic Committee (CONI) had the freedom to host sports betting like online gambling initially. It wasn’t all rosy as some operators started to complain which was alarming and needed immediate actions. They didn’t like that Italians could play at any casino non AAMS without paying any taxes on winnings.
Phases of Italy Online Gambling Regulation
In 2003, the European Commission received a complaint from the legit operators and decided to act. The body started infringement proceedings against Italy in 2006 which made the country consider some amendments. The country allowed the provision of bingo, lotteries, and remote betting. The Italian gambling market was also opened to operators from EFTA and EU countries as long as they met the conditions in place. In the same year, 2006, remote skill games and card games were opened up with the Bersani decree.
The Abruzzo law in 2009 allowed Italy to legalize fixed odd games of chance and online poker. The order also regulated remote betting exchange, wagering on video lottery terminals, and virtual betting. Sports betting and the introduction of a gross profit-based flat tax rate of 20% was also passed. In March 2010, foreign online casino operators were allowed to serve Italian citizens as long they acquired a domestic license first.
Later in 2010, the Italian government through the Comunitaria decree loosened the belt in the gambling market. Not only did the authority allow cash games of online casinos and poker but also poker satellites and tourney were legalized. A minimum of 90% payback rate of what is collected from the players was also signed in.
AAMS declared the opening of the Italian market for online slots action with immediate effect in December 2012. This opened a door to more operators and the taxation was expected to increase. AAMS changed its name to ADM (Agency of Customs and Monopolies) in 2014.
According to Statista Research Department publication in September 2019, the cash inflow in Italy for the gambling market was 102 billion euros in 2017. Most of the money was spent on video lottery terminals and slot machines. Football bets gave back the best with 8.1 billion bets.
The Balduzzi decree in 2012 introduced new advertising rules on gambling advertising. The order prohibits games ads with cash prizes mainly directed to young people on radio broadcasts, television, cinema, and theater performances. The law also banned advertisements of games with monetary prizes in publications, magazines, on the internet, radio broadcast, and television that encourage minors to participate.
In 2016, the Balduzzi law added some more restrictions. The order prohibits radio and television games advertising from 7 am to 10 pm every day. The order from the Ministry of Economy and Finance in agreement with the Ministry for Economic Development of July 2016 excluded national lotteries and sponsorships in the education, research, and culture industry from the limitations of specialized media.
Currently, Italy has more than 200 gambling websites. The online casino website carries the number with 150 of them. The rest represent online poker websites, online bingo websites, and mobile casinos. This has made Italy be the leading country in gross gambling revenue amongst European countries by 2018. The UK, Germany, France and Spain respectively follow Italy behind.
On 1st January 2019, the Dignity decree came into effect. The law banned both direct and indirect advertisements relating to betting or games with monetary prizes on all radio and television broadcasts, social media platforms, billboards, and publications. Heavy penalties are fined to operators engaging in these illegal acts. A fine of 5% of the value of the ad which is set at a minimum of EUR 50,000 will be incurred.
Other laws have been passed by the Italian gambling authorities but remain unpracticed due to the corona pandemic. They hope to bring them into effect by 2021. Among them is the requirement for all slot machines to be controlled by a monitoring system in the country and restriction of gambling venues near facilities such as schools.
Taxation was also increased with the implementation of a new tax on winnings. Players who win more than 200 euros on video lottery terminals to pay 20% tax beginning from 15th January 2019. Players who engage in other popular lotteries to be fined 20% on winnings more than 500 euros starting from March.
The increase of duty on slot machines and video lottery games was also passed from 21.68% and 7.93% to 23.85% and 8.50% respectively. For the operators to combat the increased tax effect, they adjusted the return to player percentage. Slot machines set it at 65% RTP while VLTS at 83% RTP.
In February 2020, taxes on slot machines rose from 1.32% to 23% while that of VLT increased from 7.9% to 9%. The taxes are expected to rise again come January 2021 with the aim to increase gambling revenue in the country.
Licensing and requirements
Gambling is covered by primary legislation and secondary legislation. The primary involves Civil Code provisions and other rules while secondary requires the implementation of the regulations issued by ADM.
The Italian government appointed Autonomous Administration of the State Monopolies (AAMS) which later changed to ADM to issue gambling licenses and enforce all administrative procedures regarding wagering. The license covered the following gaming;
- Casino games
- Bingo
- Horse pools
- Skill games
- Cash poker games
- Tournament and solitaire poker games
- Fixed odd and totalizator sports plus horse games.
The operators require the following to acquire a license;
- To operate at a high technical level by giving easy to use, secure and stable services.
- In the last two years, the company to have managed games in Europe with a turnover of over EUR 1,500,000.
- Administrative members who are reliable and committed.
- The technical support and official host country to be a member of the EU.
EUR 350,000 to be paid to AAMS to facilitate supervision, technical management, and administration.