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Italy's gambling lawshave finally caught up with the rest of the EU, with just about all forms of gambling now legal. However, Italy's online gambling regulation was very restrictive not too long ago, with many games of chance excluded and few licences issued.

Though the region has opened up in recent years, partly due to pressure from the EU, very high taxes mean some gambling operators are on the verge of pulling out due to unviable business in the country. Read on to learn the full story on gambling regulation in Italy.

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Land-based gambling in Italy has been legal since 1948. Legislative Decree No. 496 is the main piece of legislation on gambling in the country and has been amended numerous times since then.

Online gambling only became legal in Italy in 2006 and on a very limited basis, with most games of chance excluded. The country came under fire from the EU regarding its exclusive laws, which prevented legitimate operators of other member states from accepting Italian players.

The country's laws were amended to comply with EU regulations, resulting in those operators who obtained a licence being permitted to accept new players from Italy. Various games of chance were also gradually legalized over time, with most forms of gambling now accessible via licensed operators.

The ADM (Amministrazione Autonoma dei Monopoli di Stato, Autonomous Administration of State Monopolies) licenses and oversees online gambling operations in the country. Let's take a look at Italy's gambling regulation by game type.

Casino Games

Land-based casinos are surprisingly rare in Italy compared to the number of establishments in other European countries, with only five casinos for the country's 60 million+ inhabitants and numerous tourists. Such operations have been legal in Italy since the 1930s, as long as operators obtain a licence.  The country's lack of casinos is more than made up for by the proliferation of hundreds of slots halls, which house nearly 400,000 slot machines, outnumbering those in casinos by 100 to 1.

Online casinos have been legal in Italy since 2006, with operators required to obtain a licence before accepting players from the country. The country's ISPs block those without licences attempting to serve Italian players.

Poker

Poker is legal in Italy, and although it is considered a game of skill rather than chance, it is still subject to licensing requirements. The game is played in casinos and the 30 or so poker clubs operating nationwide. Video poker is also legal in Italy. Much like online casino gaming, online poker has been legal in Italy since 2006, with a few licensed poker operators actively accepting bets from players in Italy.

Bingo

Bingo has its roots in Italy, with the game invented as far back as the 16th century. Bingo was officially legalized and regulated in 2000, with the first bingo hall opened in Treviso in 2001. The game is very popular in Italy, with some 250 licensed bingo halls operating nationwide.

Online bingo gambling is also legal in Italy and has been subject to regulation since 2006. Several licensed operators provide online bingo games to Italian members.

Lotteries

Unlike other countries, Italy is home to several lotteries and has no monopoly on the game. Lotteries are legal in Italy and have been since 1955. However, the game's history dates back to the 16th century, with the most popular lottery in the country, the Gioco del Lotto, credited with its invention.

Online lottery games for real money are also legal in Italy, but only since 2011. Italians can access and buy lottery tickets and scratchcards from Lottoitalia, with entries to other lotteries also available online.

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The various social casinos that operate online, i.e. those that allow members to play casino games with play chips but also offer the ability to buy play chips with real money, are technically classed as gambling but are not legal in Italy.

The issues of loot boxes, virtual items of perceived value and skin gambling are under contention at the moment in Italy due to the potentially damaging effects, particularly on minors. Gambling legislation is expected to prohibit or at least regulate these activities shortly.

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Sports betting shops and offline bookmakers have been legal in Italy since 1948, with operators required to obtain a licence. Sports betting, particularly on football, is big business in Italy, with many bookies operating nationwide. Horse racing is also popular in Italy, with betting on the sport regulated separately.

Online sports betting has been legal since 2007, but licences were only issued from 2010. Fantasy and virtual sports betting also fall under the sports betting category and are regulated as such in Italy.

Online and offline sports betting operators were hit with an extra 0.5% tax on turnover as part of the country's efforts to make up for lost revenue in other areas due to the COVID-19 pandemic, resulting in some operators pulling out of the market.

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Only those aged 18 or over can legally participate in gambling activities in Italy. Those entering land-based casinos or slot halls must show a valid photo ID as proof of age before entry is granted.

Tax Regulation

Italy's gambling tax regulation could be just about the strictest in the world, with operators subject to sometimes crippling amounts of tax on turnover or gross profits.

The lowest tax rates include 0.5% of turnover for land-based casinos, 6.75% of revenue for lottery machines and 11% of gross profits for bingo halls. The highest tax rates include 18%, 22% and 24% of gross profits for offline bookmakers, virtual/fantasy sports betting and online sports betting sites, respectively, 25% of gross profits for online casinos and online bingo sites, and a whopping 43% and 45% of gross gaming revenue for horse racing betting and online horse racing betting, respectively.

When you consider that online gambling sites in Italy also suffer some of the highest rates of corporation tax and that some also have to pay the extra 0.5% COVID-19 recovery tax, the result is an effective tax rate of over 100%,which makes the operation of some businesses unviable. However, it's a different story for players, with winnings from licensed operators not subject to tax.

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Gambling dates back to ancient Rome, where many forms of gambling were permitted by law and games such as an early form of Baccarat and various dice games were played by many.

The earliest form of lottery and bingo games came onto the scene in Italy in the 16th century, starting as Lo Giuoco del Lotto D'Italia before becoming Gioco del Lotto, today's national lottery, which has now been operating for more than 500 years.

The first written record of a gambling house in Italy was in 1638 and referenced the Ridotto in Venice. The Ridotto was later moved to another location in Venice and renamed the Casino di Venezia during the 18th century.

Until 1861, Italy existed as a collection of autonomous states, each with a legal stance regarding gambling. In 1861, the country passed its first unified laws on gambling. However, it wasn't until the 1930s that the country had any regulatory control, which resulted in the opening of numerous licensed gambling houses and the country's first proper casinos.

In 1948, the gambling legislation was updated to include certain games of chance via Legislative Decree No. 496. However, online gambling wasn't specifically mentioned in law until 2006, when only a few activities were legalized, with more added in 2007 and 2011.

Key Facts

The main takeaway regarding online gambling regulation in Italy is that all forms of gambling are legal in the country. Operators must have a licence to serve Italian residents.

Online casino slots, table games, live dealer games, bingo, poker, sports betting, virtual sports betting, fantasy sports betting and horse racing betting are all permitted to be offered under licence by the ADM (Amministrazione Autonoma dei Monopoli di Stato). Loot boxes, social gambling and skin gambling may soon be under tighter control as the authorities look to crack down on potential sources of underage gambling.

It's also worth considering that, due to a combination of very high tax rates and historically exclusive licensing restrictions, Italy has fewer gambling operators than many other EU countries and may even struggle to maintain the ones it currently has in the future unless changes are made.