EGBA: black market gambling in Italy shows ad ban is failing

The EGBA argues that recent reports on the size of the unregulated market show the ban on gambling ads should be revised.

Italy.- The European Gaming & Betting Association (EGBA) has called for Italy to revise its ban on gambling adverts following reports on black-market activity. The call comes after Italian newspaper La Gazzetta dello Sport has reported estimates that Italians place €25bn in bets every year with unlicensed operators.

Of the total spend, it was estimated that €18.5bn was spent with unlicensed gambling websites.

The EGBA, the Brussels-based online gambling trade body, said: “Nearly €1bn in online gross gaming revenue in Italy is lost to black market websites annually, equivalent to the combined regulated online gambling revenue of eight other EU member states.”

It puts part of the blame on the Dignity Decree, a 2018 law that banned gambling advertising in the country. It argues that this move has helped black market operators by limiting the ability of licensed operators to promote their services.

EGBA secretary-general Maarten Haijer said: “The significant size of Italy’s online black market is concerning, yet it is not surprising given that Italy has one of Europe’s strictest advertising regimes for its licensed gambling companies.

“The country’s ban on advertising for licensed gambling operators is clearly favouring the black market. Without a sufficient level of advertising, it is evident that enforcement action against black market operators is not sufficient, and that the government needs to revise its advertising rules for gambling to ensure Italian citizens are well-informed about the licensed websites in the country.”

Italy’s Customs and Monopolies Agency (ADM) has blocked over 9,800 unlicensed gambling websites, including 400 this year. The Italian government is currently working on a major reorganisation of gambling, while the ADM is working on two decrees on sports betting that aim to resolve areas of contention with operators regarding “palpable errors” and bonus management.

The first of these will involve the introduction of a new procedure for operators to report “clear mistakes” and “market corrections”. In terms of bonus management, the ADM is reviewing how bonuses are rewarded with an eye to defining terms and conditions and thereby ensuring the “practical use of bonuses as a customer incentive”. However, there has been no move to review the impact of the advertising ban.