Italy's astonishing but very welcome about-face on Internet gambling
has caught the attention of major industry companies, with reports
of household names in the business all vying for a slice of the Italian
action by applying for some of the estimated 17 000 licenses the Italian
government is to issue.
Turning its face away from an aggressive prohibitionist approach as
recently as October this year to a policy of regulation and taxation,
Italy provided a new direction for companies looking to fill the vacuum
created by the banning of US online gaming financial transactions
created by the UIEGA.
The Italian government has announced that it will auction off 17 000
licenses for betting shops, kiosks, casinos and online casinos and
sportsbooks. Initial reports indicate that Betfair, William Hill and
Ladbrokes are all among the first to seize the opportunity.
The potential for the new market is still a matter for research and
estimation. Nilay Patel, corporate finance manager for William Hill
group told Jackpot UK that the Italian decision was essentially about
creating a new market or converting an illegal market into a legal
market. "We don't have the facts, figures and information
on which to make sensible estimates of the potential size of the opportunity,"
he said.
"Until we actually have a couple years of operating experience
in these markets, we really don't know how they're going to develop,"
he added.
Some of the U.K’s largest operators already appear well placed
to take advantage of the new laws across Europe. Gala Coral already
operate an Italian-language site and a betting shop in Genoa, William
Hill have entered into a venture with Spanish firm Codere and Ladbrokes
completed a deal with Italian firm Pianeta Scommesse back in August,
as well as buying three betting shops in Turin last month.
Many other countries, such as Greece, Ireland and the Czech Republic
have open minds and will undoubtedly watch the effects of the law
changes, basing their own decisions on its implications. Spain is
also set to follow Italy, with the various Spanish regions authorized
to set up their own regulatory structures as they see necessary. In
essence, Spain will allow gambling in regulated locations, including
online casinos, and will grant licenses for up to five years.
Overlooking all of this is the European Commission, who face the tough
job of ensuring the changes in gambling laws, however flexible or
stringent, do not interfere with healthy competition. According to
a ruling by the EU’s highest courts, member states may place
controls on private gambling operations, but they must be "non-discriminatory,
proportionate and consistent".