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Italy’s New Gambling Licensing with Christian Lowe, COO of SlotJava & NuoviCasino
With Italy’s recent overhaul of its online gambling licensing system, the industry is abuzz with discussions about the impact of the new framework. To break down the key aspects of these changes, Affpapa sat down with Christian Lowe, Chief Operating Officer of SlotJava.it and Nouvicasino.it.
In this exclusive interview, Lowe shares his insights on the new €7 million licensing fee, its implications for operators, and the broader future of gambling in Italy.
Yeva: Italy has introduced a new nine-year licensing framework with a €7 million fee per license. What’s your take on this?
This is a seismic shift for the Italian iGaming market. The previous licensing fee was €200,000, so increasing it to €7 million is a significant jump. The government justifies this by citing the maturity of the market and the need to align with other major European jurisdictions.
For large, well-established operators, this fee may be an acceptable cost of doing business in a lucrative market. But for smaller operators, this poses a major barrier to entry. The risk is that the Italian online gambling sector becomes dominated by large multinational corporations, potentially stifling innovation and limiting competition.
Yeva: The new system also imposes an annual operating fee of 3% of Gross Gaming Revenue (GGR). How will this affect operators?
The 3% GGR fee, in addition to standard gambling taxes, increases the financial burden on operators. For companies with high margins, this might be manageable, but for smaller operators, this could be a dealbreaker.
There’s also the concern that these costs will be passed on to players – either through reduced bonuses, lower payout rates, or increased fees on withdrawals and deposits. It could also incentivize players to seek unlicensed alternatives, which is something regulators should be wary of.
Yeva: The framework restricts operators to a single website per concessionaire and prohibits affiliated ‘skins’ websites. What are the implications of this?
The restriction on White Label websites is a significant move. The goal is to reduce market fragmentation and improve transparency, but it also limits the ability of operators to create specialized brands that cater to different segments of the market.
Many players prefer niche gaming experiences, whether it’s thematic online casinos, VIP-focused platforms, or sites tailored for specific demographics. With this restriction, those players may not find the same diversity of options in the regulated market, which could lead them to unlicensed platforms.
It’s also a challenge for affiliates and marketing partners, who will have to rethink their strategies in promoting legal gambling options.
Yeva: There are also strict financial guarantees – €750,000 provisional and €3.7 million final. What does this mean for operators?
These guarantees ensure that only well-funded operators can enter the market, which enhances security and accountability. However, like the licensing fee, it creates a barrier for smaller companies.
For established European brands, this isn’t necessarily a problem, but for startups or smaller regional brands, it may prevent them from competing. This contributes to further market consolidation, where only the biggest brands thrive.
From a consumer perspective, this could mean less variety in the market and fewer innovative platforms that challenge the status quo.
Yeva: Italy is also set to review its strict gambling advertising restrictions. How could this change the market?
The 2018 Dignity Decree imposed some of the strictest gambling ad bans in Europe. This forced operators to rely heavily on affiliates and SEO-driven traffic rather than traditional advertising channels.
As of now, the specifics of these potential changes remain uncertain, as the ADM has only announced plans to review the restrictions in 2025, with no definitive decisions made yet but if the government relaxes these rules, it could give regulated operators a fighting chance against black-market sites, which currently advertise freely. That said, any changes should come with responsible gambling safeguards to prevent excessive advertising that could encourage harmful behaviors.
Yeva: The ADM (Agenzia delle Dogane e dei Monopoli) expects 50 operators to apply for these new licenses. Do you think that’s realistic?
That’s an ambitious estimate. Italy is the second-largest gambling market in Europe, but with such high licensing fees and operating costs, many companies may opt out.
In reality, we could see fewer than 50 applicants, with consolidation among existing license holders. The big names will stay, but smaller operators may struggle to justify the costs, especially when they can operate more affordably in other European markets.
A more diverse, competitive market is always healthier than one dominated by a handful of giants, so this is something regulators should keep in mind.
Yeva: What do you see as the future of online gambling in Italy under this new framework?
The Italian market is evolving, and while this framework aims to stabilize and regulate the sector, it also presents significant hurdles.
In the short term, we may see smaller operators exit the market, mergers among mid-sized brands, and a stronger presence from global gambling companies. The long-term success of these regulations will depend on:
- How well the ADM enforces compliance
- Whether the government adjusts fees or entry barriers over time
- How advertising regulations are restructured
- Whether player demand shifts toward the black market unlicensed alternatives
Operators will need to innovate and adapt to these new realities while staying compliant. The government, in turn, must ensure that players have access to a competitive and fair market rather than a monopolized one.
Conclusion
Italy’s new online gambling framework represents a major regulatory shift that could reshape the market for years to come. While the increased licensing costs, financial guarantees, and restrictions aim to create a more structured and secure gambling environment, they also bring significant risks. Smaller operators may struggle to survive, leading to a more concentrated market dominated by major corporations. Higher costs could also impact players through reduced bonuses, lower payouts, or fewer choices, while strict advertising rules remain in limbo, leaving uncertainty for operators. If not carefully managed, these changes could inadvertently drive players toward unlicensed markets, undermining the regulation’s intended goals.
Company: SlotJava.it and Nouvicasino.it.
Interviewee: Christian Lowe
Date: 12.02.2025
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