European Union Financial Protection Regulation Adoption Process Commences
In Italy, the gambling landscape has been undergoing significant changes, with the country's 2018 advertising ban, known as the Dignity Decree, receiving widespread criticism. The ban, aimed at reducing gambling harm, has been accused of causing significant losses in sports sponsorship revenue and potentially fueling the black market.
According to Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), the nationwide advertising ban for licensed gambling providers may be benefiting the black market. Estimates suggest that even with strict regulation and enforcement efforts, up to €25 billion in wagers still pass through unlicensed sites annually in Italy. The EGBA argues that Italy’s restrictive policies, particularly the advertising ban, may unintentionally be driving bettors towards underground operators.
The Italian customs and monopolies agency has blocked nearly 9,800 unlicensed gambling sites this year alone, but the growing black market, potentially linked to the Italian mafia, has become a cause for concern. The complete advertising ban for all forms of gambling, with the exception of state lotteries, is a core component of Italian gambling regulation. However, without sufficient advertising, Italians have no real way of distinguishing between a licensed and an unlicensed gambling website.
The Amministrazione Autonome dei Monopoli di Stato (AAMS) is responsible for issuing gambling licenses in Italy. Separate licenses are issued for online gambling, lotteries, sports and horse betting, and land-based casino offerings. The AAMS has strict requirements for those who wish to obtain a license.
Despite the criticisms, Italy is now preparing for a regulatory overhaul. In 2025, the country is extending its licensing window and revisiting key policies. The government is preparing to amend or repeal the advertising ban as part of a broader sports law reform. This shift signals a move toward a more balanced regulatory framework aimed at legitimizing and capitalizing on the gambling sector’s economic potential while also improving consumer protection and market integrity.
The Minister for Sport Andrea Abodi has criticized the ban as a blunt tool that deprived sports of funding without reducing gambling-related harms. This change in thinking could lead to a more effective approach in controlling gambling, reducing illicit activity, and reviving economic benefits from sponsorships and regulated gambling revenue.
In summary, the advertising ban has been ineffective at lowering gambling harm, deprived sports of sponsorship revenue, and potentially fueled the black market. The black market in Italy is estimated to be €25 billion annually. However, Italy is now preparing for a regulatory overhaul, extending its licensing window, revisiting key policies, and potentially repealing the advertising ban as part of a broader sports law reform. This shift signals a move toward a more balanced regulatory framework aimed at legitimizing and capitalizing on the gambling sector’s economic potential while also improving consumer protection and market integrity.
What about the potential consequences of repealing the advertising ban on business and finance, particularly in Italy's casino-and-gambling sector? Could the relaxation of advertising rules open new opportunities for legal operators and stabilize the market by reducing the influx of funds towards the black market?
