MECN has published a report about the Italian gambling market in which they conclude Italy is one of the most promising online and land-based gambling markets due to Italy’s forerunner role in the liberalization of European gambling markets.
After the decision of the European Court of Justice in the Placanica case and the recent tender that allowed a large number of online and land-based gambling operators to enter the Italian market, all eyes are now turning to Italy and its role in the liberalization of European gambling markets.
The consulting firm MECN’s new study and survey “The
Italian Gambling Market - a Forerunner in the Liberalization of European
Gambling Markets” analyses the Italian gambling market in detail.
The study includes the results of a survey MECN conducted among more
than 70 international operators who offered their unique insights
and assessments.
The Italian market has a top priority for international gambling
operators
After the recent legal conflicts in traditional gambling markets,
an obvious key strategic option for many operators is expansion into
less restrictive jurisdictions or into regions where increased liberalization
will likely take place in the near future. Accordingly, more than
80% of the international gambling operators (also including several
state operators) surveyed believe that the Italian market will be
of major relevance for their future business.
The growth drivers are, above all, the retail betting sector and
Internet gambling
In expectation of the decision in the Placanica case and in view of
its empty state coffers, Italy decided to drastically increase the
number of online and retail betting licenses. Accordingly, at the
beginning of 2007 nearly 14.000 new betting licenses (for sports and
horse race betting shops/terminals) were awarded. Among the new operators
are the giants of global gambling: Ladbrokes, Intralot, William Hill,
Betfair, Gala/Eurobet, … In addition, more than 30 new online
/interactive gambling operators obtained a license and will push the
market forward to new heights.
The study identifies several reasons why Italy is perceived as so attractive:
- Another phase of liberalization is expected in the near future - Two-thirds of the experts surveyed expect another phase of liberalization in the near future that will go even further than the steps planned for 2007.
- Growing relevance of foreign operators - A large majority of the experts believe that by 2010 international operators, such as Ladbrokes and Intralot, will capture a relevant share of the gambling market.
- Growth potential, especially for retail betting and interactive gambling - Overall, Italy’s gambling market is expected to grow to Euro 61 billion (turnover) by 2010 (+64%). By 2010, the retail betting market is expected to grow to ca. Euro 14 billion, which is about 200% of its current size (CAGR of 32%). Another growth driver will be interactive gambling, which is expected to reach ca. Euro 3.7 billion by 2010, a growth of ca. 240% over the current level (CAGR of 40%).
The study can be obtained at: http://www.italy-gambling.mecn.net