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The upcoming full replacement of all the Italian betting shop licenses raises questions on who is going to lead the market in the future.
A complete resetting of the betting shop market
Italy will shortly face an interesting phase. Indeed, all the current betting shop licenses as well as the authorizations held by the “cured” CTDs will expire and a new tendering process will be launched for the award of
- 10,000 betting shop licenses against an initial bidding price of € 32,000 and
- 5,000 corner shop licenses against an initial bidding price of € 18,000.
This means that companies that are currently leading the Italian betting shop market might see their position considerably changed to the benefit of new entrants in the market or entities that want to increase their market share. This is particularly true if it is considered that the 15,000 new licenses to be awarded represent the actual size of the market and therefore someone might be left without licenses or with a more limited number of licenses.
Online and offline: the Italian “unusual” story
In a period when in countries like the UK it is expected that the gaming retail market will face a decline to the benefit of the online market, Italy is a country where a few operators have been able to make the synergy between online and land-based work great.
It is not possible to install gaming terminals connecting to online platforms in shops, but betting shops can act as affiliates for the online business, sell gaming vouchers and – subject to the implementation of the required regulatory measures – also process withdrawals.
These are factors that are quite relevant in a market where over 90% of payments still occur in cash. And indeed, some gaming operators in the market created a parallel line of business dedicated to the payment sector which has become very successful.
More certainty will be ensured
The new tendering process for betting shop licenses will also take place in a regulatory environment where the Government committed to put an end at the current uncertainty as to the location of shops/time of operation. Indeed, at the moment each region/municipality adopted its own rules leading to a market which is difficult t handle for operators.
However, the budget law of last year provides that an arrangement between the Government and the Regions shall be reached by the end of April so that common rules will be applicable across the whole country.
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