How AAMS regulates the casino industry in Italy

There have been different forms of gambling for a couple of centuries. It’s traceable to the times of the Roman Empire among the most interesting historical practices not only in the locality but also around entire Europe. The country has dealt with issues to do with gambling for long. It has gone through the negatives and the positives due to its perception of gaming.

Comparing Italy to other countries in Europe, you will realize that it has liberal gambling laws. For instance, 2006 was a notable year in the history of gambling due to the introduction of legislation permitting operators to provide several betting services online and in retail locations. Since then, several alterations have occurred to include an amendment in 2011 that permits licensing of casino and poker games. Due to that, numerous websites have been offering gambling to locals in different forms.

At the moment, the legislation classifies the game based on skill differently to that of chance. Besides, there is the legalization of sports betting and lottery though gambling remains illegal regardless of the place the operator is offering it, i.e., private or public area. Licensing and regulation of gambling in Italy are under Autonomous Administration of the State Monopolies (AAMS).

History of Gambling Legislation in Italy

The skill-based games are sports betting and lotteries. The government of Italy considered the industry as one that has negative aspects to the citizens, thus the efforts to keep the country free from such. The AAMS has blacklisted over 500 online gambling avenues.  Still, foreign casinos with no AAMS, Casino Stranieri, operating under Curacao license, hold their market positions.

The passing of the finance act of 2007 was a boost in the protection of online gambling. While video poker remained illegal, the bill sought regulations of poker tournaments happening in the country.

There was also the passing of a legislative bill named Abruzzo Decree in 2009. The legislature stood for ring games, poker tournaments based on the web and games of chances with fixed odds. Besides, there was a reduction in license fees.  A requirement for operators to be located in Italy became null too. Through the decree that online gambling, casinos, and poker became legal, video lotteries began operating.

European Union is behind the initiation of amendments of gambling laws by calling for more compliance by the country on the offering of licenses and regulating the sector. As a result, betting operators, online and land-based casinos got their licenses.

The relaxation of the legislation came with a positive impact on the revenue collected from gambling since 2018. A report by Statista, Italy, leads to the European Union with the highest Gross Gambling Revenue (GGR). The countries emerging amongst the top five after Italy are the United Kingdom, Germany, France, and Spain. However, there are still loopholes on the forms of gambling allowed in Italy.

The revenues collected from the industry in Italy go to the operators and the public. The sectors that receive the income include the Ministry of Heritage and Cultural Activities, sports, horse racing with the most substantial proportion going to the state treasury. An example of the active companies offering gambling services in Italy is Sisal and Lottomatica. They offer several types of games countrywide, including instant lotteries, traditional lotteries, gaming machines, horse race betting, sports betting, and bingo.

Regulations

Italy is considered a lucrative market for online gambling, with many operators rushing to get a license. The government has come to learn that there is a need to ensure that the environment is conducive for investors. In 2014, the stipulations on the advertisement of gambling activities saw a modification from the House of Representatives. The objective was not to illegalize advertisements on the media but to introduce new implementations.

Relevant Legislation

In Italy, it is illegal for gambling in a place accessible by the public and private areas. The licensing is under the authority of the Autonomous Administration of the State Monopolies (AAMS). The operator gets a license review period of three months which, once approved, needs to be authorized to offer particular games. They must acquire certification to their online platform.

The body offers the license to any willing operator provided they are in the European economic region. A bilateral agreement allows the servers of the company to be in other countries.

Online Gambling in Italy

In the past, the Government of Italy had tried to regulate foreign websites though the efforts were in futility. It reached a point that it started a gambling site but at last lifted ban on gambling in the country. At the moment, there are over 200 gambling websites in the country. Seventy-five percent of them offer online casino services, whereas the rest are mobile casinos, online poker, and bingo websites.

Before AAMS took over the regulatory authorities, the responsibilities were under the finance ministry in a body named Special State Monopoly Service.

To get a license for online gambling, the applying company has to prove to the Italian gaming authorities that they meet the requirements. Once the operator obtains the permit, they must comply with all the rules stipulated by the government; otherwise, breaching comes with severe consequences. Violation of the regulations results in imprisonment, bails, criminal trials, fines, amongst other restrictions.

Player guarantee

AAMS plays a role in ensuring the safety of players in online betting sites. There must be an AAMS logo, which indicates the operator has a license to operate. However, websites without a permit from the regulatory body in Italy will see their site shut down even before they start operations. AAMS is very swift in ensuring that the industry is safe.

Requirements for an AAMS license

AAMS requires that the operator is reliable, honest, and must have been in the management of gambling activities in a European country with at least 1, 5 € million turnover for the previous two years. There is also a need for a company-player contract.  The requirement set to qualify for the Italian gaming license is an onetime upfront fee of €300,000. Besides, the company must meet particular obligations on finance, techniques, and society.

Conclusion

AAMS is critical in the regulation of the gambling industry in Italy. Having a license from the body translates to protection to both the gambling operator and the player. Implementation of responsible policies in the industry helps ensure that there are safe gambling behavior and balance in the channels.