Italy will implement a new online gambling regulatory framework starting November 13, 2025, significantly reducing the number of gambling websites from 407 to just 52 legal operating sites. This reform, led by the Italian Customs and Monopolies Agency (ADM), prohibits so-called "skin sites" (i.e., domains where affiliate companies resell licensed products) and enforces a "one domain per license" rule. Forty-six companies will control these 52 licenses, with major operators such as Flutter Entertainment, Entain, bet365, and Lottomatica expected to benefit, while smaller operators face severe challenges. The new regulations also introduce stricter player protection measures, requiring bettors to set their own deposit and spending limits. This move aims to increase transparency and combat illegal gambling in Italy's gambling market, valued at over 21 billion euros (the fourth largest in Europe).
Reform Overview and Implementation Date
The new gambling regulatory framework led by the Italian Customs and Monopolies Agency (ADM) will officially take effect on November 13, 2025. This reform is considered one of the most significant changes in the history of Italian gambling, aiming to completely transform the structure of the online gambling market.
The new rule will reduce the number of active gambling websites from 407 to just 52 legal operating sites, significantly reducing the number of market participants.
Regulatory Changes and "Skin Sites" Ban
The core content of the new framework is the prohibition of "skin sites"—domains operated by affiliate companies that resell licensed games and gambling products. ADM enforces a "one domain per license" rule, strictly limiting the number of operating brands.
This measure will result in more than 350 skin-operated domains going offline, leaving only 52 officially licensed websites to operate legally in Italy.
Market Structure and License Distribution
After the reform, 46 companies will control 52 gambling operation licenses, with multiple operators managing multiple brands. For example, Flutter Entertainment manages brands such as Sisal, Snaitech, and Betfair Exchange under its Italian domain.
According to data from the Italian Gambling Industry Association (ASTRO), 315 of the affected domains are operated by domestic companies, and 92 belong to international companies.
Economic Scale and Government Revenue
The Italian gambling market is valued at over 21 billion euros annually, making it the fourth largest gambling market in Europe. The government has already received 365 million euros in revenue from the licensing process, exceeding the Ministry of Finance's target of 300-350 million euros.
Each license costs approximately 7 million pounds, and the industry contributes a total of 8 billion euros in taxes and other fees annually.
Advantages for Major Operators Expected
Industry observers note that the new framework may benefit larger, well-funded companies. Giants like Flutter, Entain, bet365, and Lottomatica already dominate the market and are better equipped to handle strict advertising laws and operating costs.
These companies, with their existing market share and resource advantages, are expected to further consolidate their positions in the new regulatory environment.
Challenges for Smaller Operators
Smaller operators and newcomers face significant challenges, especially in a marketing environment where gambling-related advertising and sports sponsorships are banned nationwide. The national director of Stake, Fabio A. Bufalini, stated that new brands in Italy need to "start from scratch" to build market recognition.
The advertising ban limits promotional channels, making it difficult for new operators to stand out in the competition.
Analysis of Changes in the Competitive Environment
Some analysts believe that the ban on skin sites might actually benefit medium and small gambling companies, as the number of competitors has decreased from over 400 to just 52. Reducing the number of competitors may create a more flexible competitive landscape.
A more controlled market can provide fairer conditions, allowing companies to compete directly with licensed peers rather than hundreds of affiliate sites.
New Player Protection Measures
The new framework introduces stricter player protection rules, requiring bettors to review and accept updated terms and conditions before betting, and to set their own deposit and spending limits. Restrictions include maximum deposit thresholds and single bet expenditure limits.
Operators must display prompt banners on their websites, and users have six months to complete the limit setting process, or their betting privileges will be suspended.
Measures to Combat Illegal Gambling
The ADM's crackdown on skin sites is part of a larger effort to combat illegal gambling. Italy is working with the Ministry of Finance and the state-owned technology provider SOGEI to develop a "cybersecurity shield" to block access to unauthorized gambling domains.
Merchants providing public internet access must install protective software, and non-compliance will result in fines or criminal charges.
Background on European Regulatory Trends
Italy's approach reflects a broader trend in Europe to strengthen responsible gambling regulation, similar to recent measures in the UK, the Netherlands, and Spain. Countries are generally enhancing affordability checks and consumer protection measures.
By strengthening controls, Italy aims to protect consumers while maintaining one of its most profitable entertainment industries.
Market Transition and Compliance Timeline
With the new framework taking effect on November 13, the Italian gambling market will enter a new era. Operators need to adapt to a reduced number of websites, stricter compliance standards, and a greater focus on player welfare.
Players have six months to complete the new limit setting process, and accounts can be reactivated within three years as required.
Industry Impact and Long-Term Outlook
The reform is expected to increase market transparency and regulatory efficiency, but it may reduce market diversity and innovation space. The long-term impact depends on regulatory enforcement and market adaptability.
Balancing regulatory strictness with market vitality will be a key challenge for the future development of the Italian gambling industry.
