Italy’s gambling industry is experiencing its most dramatic transformation in over a decade, as sweeping regulatory reforms trigger unprecedented consolidation across Europe’s largest gambling market. The introduction of €7 million licensing fees, enhanced compliance requirements, and strategic acquisitions are fundamentally reshaping the competitive landscape of a sector that generates €21.6 billion in annual gross gaming revenue—making it the continent’s most lucrative gambling market.

This regulatory overhaul, centered around the new nine-year online gambling concessions, is dramatically reducing the number of active operators from over 500 to an expected 30-35 major players. The consolidation is being accelerated by strategic acquisitions, most notably Flutter Entertainment’s €2.3 billion purchase of Snaitech from Playtech, which positions Flutter as Italy’s market leader with an estimated 30% market share.

Key Takeaways

• Market Leadership: Italy stands as Europe’s largest gambling market with €21.6 billion in gross gaming revenue, surpassing the UK’s €19.8 billion in 2023.
• Dramatic Consolidation: The number of active operators is expected to plummet from over 500 to just 30-35 major players following regulatory reforms.
• Licensing Revolution: New €7 million online gambling licenses represent a 35-fold increase from the previous €200,000 fee, creating significant barriers for smaller operators.
• Major Acquisitions: Flutter’s €2.3 billion Snaitech acquisition leads a wave of consolidation deals reshaping market dynamics.
• Tax Increases: The 2025 Budget Law introduced additional taxes projected to generate €481 million in annual revenue for the state.
• Technology Overhaul: Enhanced AI-driven monitoring systems and doubled inspection capacity demonstrate Italy’s commitment to regulatory modernization.
• Market Concentration: The leading four operators now control 57% of Italian online gross gaming revenue, up from 37% in 2019.

Market Dominance and Economic Significance

Italy’s position as Europe’s gambling powerhouse extends far beyond simple revenue figures. The country’s gambling sector contributes €11.6 billion annually in tax revenue, making it a crucial component of the national economy. With over 92 billion in online wagers recorded in 2024 and the online segment alone reaching €5 billion—an 11% year-over-year increase from €4.5 billion in 2023—Italy represents one of the world’s most competitive and lucrative gambling markets.

The online gaming segment, encompassing casino games, table games, bingo, and poker, is projected to reach €3.2 billion in 2025, while total online wagering climbed from €65 billion to €73 billion. These figures underscore the market’s rapid digital transformation and continued growth trajectory despite increasing regulatory pressure.

“Italy’s gambling market represents the crown jewel of European gaming,” explains Christian Tirabassi, founder of M&A advisory firm Ficom Leisure. “The scale and sophistication of Italian operations make it essential for any serious European gambling strategy, but the new regulatory framework is fundamentally changing who can afford to compete.”

Regulatory Revolution: The €7 Million Licensing Framework

Here is what you should know about Italy’s regulations:

New Licensing Architecture

The cornerstone of Italy’s reform is the introduction of nine-year online gambling licenses priced at €7 million each—a dramatic 35-fold increase from the previous €200,000 fee. The Customs and Monopolies Agency (ADM) officially closed applications for these new concessions on May 30, 2025, marking a definitive turning point for the industry.

The new licensing framework establishes stringent requirements that effectively function as market gatekeepers:

• €7 million authorization fee (€4 million upfront, €3 million before operations commence)
• 3% annual operating fee based on gross gaming revenue
• €3 million minimum revenue requirement over the past two fiscal years
• €750,000 provisional guarantee plus €3.7 million final guarantee
• 0.2% of GGR investment in responsible gambling campaigns (capped at €1 million annually)

These requirements represent more than mere fee increases—they constitute a fundamental reimagining of market access that prioritizes financial stability, operational sophistication, and regulatory compliance over historical market presence.

Enhanced Tax Structure

The 2025 Budget Law introduced additional tax adjustments across gambling verticals, projected to generate €481 million in additional annual revenue:

• Online sports betting: Tax increased from 24% to 24.5% of GGR
• Online casino games: Tax raised from 25% to 25.5% of GGR
• Land-based sports betting: Tax elevated from 20% to 20.5% of GGR
• Horse racing relief: Fixed-odds betting tax dramatically reduced from 43% to 20.5%

The horse racing tax reduction represents a strategic intervention aimed at revitalizing a declining sector, while the modest increases across other verticals reflect a calibrated approach to revenue generation that avoids undermining market competitiveness.

Market Consolidation: From Fragmentation to Concentration

The impact of Italy’s reforms on market structure has been swift and severe. Industry experts predict the number of active operators will decline from the current 81 licensed operators to just 33 following the new licensing round. While the previous licensing process attracted 93 applications, current forecasts suggest only 52-53 applications for the new regime.

“There are very small companies that were able to operate in a market that was €4 billion at the time, now €5 billion, with an investment of €250,000,” Tirabassi explained. “The regulator decided that this is not acceptable.”

Post-reform, analysts expect just a handful of operators to generate around 80% of Italy’s €5.2 billion in remote gross gaming revenue, with no more than 30-35 operators active in the legal market as a whole. This consolidation represents what Tirabassi characterizes as “natural selection in favour of larger corporations.”

Barriers to Entry and Market Evolution

The €7 million licensing fee creates substantial barriers for smaller operators while establishing new standards for market participation. The reform effectively requires operators to demonstrate:

• Financial strength through proven revenue history and capital reserves
• Technical capability including advanced compliance infrastructure
• Omnichannel presence across online and retail channels
• Comprehensive AML compliance and responsible gambling measures

LOGiCO President Moreno Marasco warned that the licensing cost increase “significantly reshapes Italy’s remote gaming landscape” and could “limit market plurality, concentrating control in fewer hands.” However, supporters argue this consolidation will create a more stable, professionally managed market better equipped to address regulatory challenges and consumer protection requirements.

Strategic Acquisitions Reshaping the Landscape

The most significant consolidation move occurred with Flutter Entertainment’s €2.3 billion acquisition of Snaitech from Playtech, completed in April 2025. This transformative deal positions Flutter as Italy’s undisputed market leader with an estimated 30% market share when combined with its existing portfolio.

Flutter’s comprehensive Italian presence now includes:

• Sisal and PokerStars: 15% combined GGR share pre-acquisition
• Snaitech: Additional 10% market share through the acquisition
• Robust omnichannel network: 2,047 gaming points through Snaitech’s retail infrastructure
• Brand diversification: Multiple customer touchpoints across different market segments

The acquisition provides Flutter with critical advantages in Italy’s advertising-restricted environment, where omnichannel presence and retail distribution become essential for customer acquisition and retention.

Broader Consolidation Activity

Flutter’s marquee acquisition represents just one component of a broader consolidation wave transforming Italian gambling:

• Lottomatica Group: Acquired Betflag for €310 million, creating an enlarged entity with GoldBet that strengthens its market position
• Codere Group: Purchased a 70% stake in fast-growing Italian operator Codgames, expanding its European footprint
• 888 Holdings: Completed acquisition of William Hill’s Italian assets, adding retail presence to its digital operations
• Cirsa: Acquired a 60% stake in emerging operator Eplay24, demonstrating continued appetite for growth assets

These strategic moves have concentrated market power among the leading four operators—Flutter, Lottomatica, Entain, and SNAI—which now account for 57% of Italian online gross gaming revenue, compared to just 37% in 2019.

Technology and Compliance Transformation

Italy’s ADM has unveiled its 2025-2027 Activity and Organisation Plan, introducing comprehensive technological and compliance upgrades designed to modernize regulatory oversight:

• Doubled inspection capacity for both online and land-based operators
• AI-driven monitoring systems enabling real-time compliance tracking and pattern recognition
• Enhanced AML protocols aligned with evolving EU directives and international standards
• Centralized monitoring system providing comprehensive oversight of player transactions and operator behavior

Advanced Technical Requirements

The new regulatory framework establishes sophisticated technical standards that reflect Italy’s commitment to modernizing its gambling oversight:

• Real-time monitoring capabilities with tamper-proof audit logs and comprehensive data trails
• Third-party verification by certified assessment bodies ensuring independent compliance validation
• Modular infrastructure requirements including disaster recovery protocols and business continuity planning
• Prohibition on skin sites operating under single licenses to prevent regulatory arbitrage
• Mandatory 20-minute automatic logout for inactive sessions to promote responsible gambling

These technical requirements demonstrate Italy’s evolution toward a data-driven regulatory approach that leverages technology to enhance oversight while reducing administrative burden.

Market Leaders and Competitive Dynamics

As of 2025, the Italian gambling market is dominated by several key players with distinct strategic positions:

• Lottomatica Group: Commands 29% market share through its portfolio including GoldBet, Betflag, and Planetwin365
• Flutter International: Controls 22.7% share through Sisal, PokerStars, Tombola, and Betfair, now enhanced by Snaitech acquisition
• Entain: Maintains significant presence through multiple brand portfolio and strategic partnerships
• SNAI: Operates as a standalone brand with strong market recognition and customer loyalty

The acquisition activity has created a more concentrated market structure where scale, technological capability, and regulatory compliance have become essential for sustainable competition.

Future Market Evolution

Industry analysts anticipate continued consolidation as operators adapt to the new regulatory environment. Success in post-reform Italy depends on what Tirabassi describes as becoming “large, integrated, multi-product, multi-channel companies” with “scalable omnichannel business, operating both online and land-based gambling under the same brand.”

This evolution reflects broader European trends toward integrated gambling ecosystems where operational scale, technological sophistication, and regulatory compliance create sustainable competitive advantages.

Industry Challenges and Responses

The dramatic licensing fee increase has generated significant industry resistance. Several operators filed legal appeals with the Regional Administrative Court (TAR) of Lazio, arguing that licensing costs constitute “an unfair barrier to competition.” However, these challenges have been unsuccessful in halting the reform process, suggesting regulatory commitment to the new framework.

LOGiCO has criticized the changes as potentially stifling competition and innovation, warning that the new framework could “narrow the playing field to only the largest operators.” Industry associations argue that reduced competition could ultimately harm consumers through limited choice and potentially higher prices.

Black Market Combat and Enforcement

Italy’s regulatory modernization includes intensified efforts to combat illegal gambling, which costs the country approximately €1 billion annually in lost revenue. In 2024, ADM’s enforcement activities included:

• 721 unauthorized gambling websites blocked (compared to 490 in 2023)
• Over 19,000 inspections conducted across online and land-based operations
• 3,319 administrative penalties imposed for various regulatory violations
• €72.5 million generated in tax assessments from enforcement activities

These enforcement statistics demonstrate Italy’s commitment to channeling gambling activity into regulated channels while protecting consumers from unlicensed operators.

Looking Ahead: Phase Two and Land-Based Reforms

While online gambling reforms are now in effect, Italy’s comprehensive gambling overhaul includes a second phase targeting land-based operations. Originally scheduled for December 2025, this phase has been postponed to August 2026 to allow for better coordination between national and regional authorities.

The land-based reform phase will address:

• Unified licensing framework for physical gambling venues
• Strict location requirements including mandatory distances from schools and religious facilities
• Enhanced player protection through mandatory ID checks and exclusion systems
• Financial controls including €100 weekly cash deposit limits

The postponement reflects pressure from regional authorities seeking clearer revenue-sharing arrangements and concerns about implementation complexity across Italy’s diverse regulatory landscape.

Regional Coordination Challenges

The delay in land-based reforms highlights ongoing tensions between national policy objectives and regional implementation concerns. Local authorities have expressed concerns about revenue distribution, enforcement coordination, and the practical challenges of implementing uniform standards across diverse regional markets.

International Implications and Model Export

Italy’s comprehensive gambling reform may serve as a model for other European jurisdictions seeking to balance market liberalization with enhanced regulatory oversight. The Italian approach demonstrates how significant regulatory changes can rapidly reshape market dynamics while maintaining operator viability.

Key elements of the Italian model that may influence other jurisdictions include:

• High-barrier licensing that ensures only well-capitalized operators participate
• Technology-driven oversight leveraging AI and real-time monitoring
• Comprehensive compliance requirements addressing responsible gambling and AML concerns
• Strategic tax optimization balancing revenue generation with market competitiveness

Global Market Implications

For international gambling operators, Italy’s transformation provides valuable insights into managing regulatory transitions while maintaining market position. The success of major players like Flutter in navigating these changes through strategic acquisitions offers a playbook for similar transitions in other major markets.

Conclusion: A New Era for European Gaming

Italy’s gambling reform represents the most comprehensive restructuring of a major European gaming market in recent history. By implementing €7 million licensing fees, enhanced compliance requirements, and advanced technological oversight, Italy has transformed its gambling landscape from a fragmented field of hundreds of operators to a consolidated market dominated by well-capitalized, technology-driven companies (including crypto casinos).

The consolidation trend, exemplified by Flutter’s €2.3 billion Snaitech acquisition and numerous other strategic deals, demonstrates how regulatory pressure can rapidly reshape market dynamics. While smaller operators face elimination, the reforms promise a more stable, transparent, and professionally managed gambling environment that better serves both regulatory objectives and consumer protection goals.

As Europe’s largest gambling market continues this transformation, Italy’s approach provides valuable lessons for other jurisdictions considering similar reforms. The success of these changes will ultimately depend on their ability to maintain competitive dynamics while ensuring consumer protection and maximizing state revenue in an increasingly digital gambling landscape.

The Italian experience suggests that well-designed regulatory reform can achieve multiple objectives simultaneously: generating increased government revenue, improving consumer protection, enhancing market stability, and creating sustainable competitive conditions for qualified operators. As other European markets consider their own regulatory evolution, Italy’s comprehensive approach offers both a model and a cautionary tale about the complexities of transforming established gambling markets.