The Italian online gambling market, long Europe's largest by revenue and notorious for its crowded field of operators, is undergoing a seismic consolidation.
The Italian online gambling market, long Europe’s largest by revenue and notorious for its crowded field of operators, is undergoing a seismic consolidation. The Agenzia delle dogane e dei Monopoli (ADM), Italy’s gambling regulator, has confirmed the approval of just 46 applications for new online gambling licenses, a move that signals a deliberate and dramatic reduction in the number of active market participants. This outcome follows the closure of ADM’s tender process on May 30, 2025, and is set to redraw the competitive landscape entirely.
The approved list of 46 submissions marks a stark contrast to the previous licensing round in 2018, which attracted 93 operators, with 81 ultimately gaining approval. This significant contraction in operator numbers is largely attributed to the substantially higher fees now associated with obtaining a license. The new cost of 7 million Euros per vertical per brand utterly eclipses the previous fee of just 200,000 Euros under the former licensing model, effectively pricing numerous smaller players out of the market.
With the initial list of approved licensees now formed, operators will advance to the next phase, which involves paying the required fee. The ADM is expected to carry out further checks over the coming weeks before formally awarding the licenses, with this process anticipated to conclude in September. Successful operators will then have a six-month window to launch their services in Italy. To ensure a smooth transition, the ADM will permit existing license-holders to continue offering gambling until March 2026. After this date, only those with the newly awarded licenses will be authorized to operate in the country, effectively ending a regulatory scheme that has been in place for almost two decades.
Among the prominent operators featured on the initial approved list are industry heavyweights. These include Flutter Entertainment’s key brands such as Betfair, Snaitech, and Sisal. Other major players securing approval include 888 Italia (part of Evoke), Hillside (Bet365), LeoVegas, and William Hill. The successful applicants also encompass Admiral Sport, Betsson, BetPoint, BetPremium Eurobet Italia, Greentube, Marathonbet, Win Bet, and Winamax. Notably, two municipal casinos, San Remo and Venice, also entered the bidding process and secured approval, signaling their intent to participate in the online market.
The new licensing framework is just one component of a sweeping gambling reform package designed to modernize Italy’s regulated online gambling market, which has been operational since 2006. These reforms introduce comprehensive changes beyond just the licensing process, impacting wider market operations and player protection standards.
The new taxation regime is also significant. Online sports betting operators will now pay a 24.5% tax on gross gaming revenue (GGR), while online casino operators will face a 25.5% GGR tax. Operators will also be subject to an annual fee set at 3% of GGR and are mandated to spend at least 0.2% of their GGR on responsible gambling campaigns, capped at 1 million Euros. Interestingly, the tax rate on horse racing betting has seen a substantial decrease, dropping from 43% to 20.5% in an effort to revive this struggling vertical.
Crucially, the reforms introduce advanced player protection tools. Customers will now be empowered to set limits on deposits, spending, and playing time, as well as initiate self-exclusion from online platforms. Automated warning alerts will also be implemented to help tackle compulsive behavior. In a pioneering move for European regulation, Italy will introduce stricter controls specifically targeted at the younger 18-24 age bracket, reflecting a heightened focus on protecting vulnerable populations. The reforms also aim to streamline regulatory oversight and reduce grey-market leakage by linking each concession to a single website domain, a significant departure from the previous patchwork of over 400 domains. The higher bar for entry is explicitly designed to drive market consolidation, with the number of licensed brands forecast to fall from 88 to around 50 without negatively impacting the sector’s estimated 5 billion Euros in annual online GGR. Analysts predict that a small group of companies will generate as much as 80% of Italy’s remote GGR, with the total number of active legal operators likely to fall to around 30 to 35.
The ADM’s ambitious 2025-2027 reform plan seeks to modernize, regulate, and bring greater transparency to the nation’s gambling sector, reinforcing consumer protection and combating the black market. This move towards fewer, but stronger and more compliant, operators is set to redefine the competitive dynamics of Europe’s largest online gambling market.
