With Italy’s retail gaming concessions set to expire at the end of 2026 and the tendering process getting delayed, land-based companies are wary of a potential business disruption. Because of that, Associazione Gestori Scommesse Italia (AGSI), an association representing betting operators, has encouraged the government to introduce an emergency measure that would allow gaming shops to remain operational.
Italy’s Retail Gaming Sector Is Stuck in Limbo
Italy’s current concessions for sports betting, bingo, VLTs, and AWPs are nearing their end. Set to expire on December 31, 2026, the current concessions highlight continuously delayed reforms.
The potential disruption faced by the industry is due to the fact that the process for issuing new tenders was shelved in August and missed its deadline. To top it all off, further delays are expected, with experts suggesting that the government is unlikely to reorganize the retail sector before the next general election.
While the reorganization of the gaming sector has been discussed for years and the broader technicalities have already been cleared up, political hurdles have prevented reforms. To make matters worse, online gaming operators are currently enjoying new concessions, providing the digital sector with significant stability.
For reference, Italy’s retail sector is an EUR 21 billion industry and is responsible for most of the money wagered in the country, making this a pressing matter. Land-based industry stakeholders are growing more and more concerned about the state of affairs, especially in light of the fact that iGaming licenses are valid for 9 years, while retail concessions are extended on an annual basis.
This disparity has made retail operators less competitive, hurting businesses. At the same time, the convenience offered by online gambling has seen an influx of players, causing further hurdles for land-based businesses and resulting in lower retail revenue and tax contributions.
AGSI Encouraged the Government to Act Now
As mentioned, the AGSI has now come forward to ask the government to introduce bridging measures, emphasizing that operators of gaming machines, sports betting, and horse racing cannot wait three years.
The AGSI suggested transition measures that make the retail sector more competitive. These could include allowing such businesses to offer new products that could give them a much-needed edge.
At the same time, the AGSI suggested that the government should allow small and medium-sized businesses to bid alongside larger companies when it comes to the tender process. This would create a more evenly distributed network of betting shops.
The AGSI warned that failing to act quickly will hurt the legal sector and, by extension, benefit its illegal counterpart. Speaking of which, the AGSI also encourages stricter action against unlicensed companies instead of further restrictions on licensed ones.