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The delay in the award of new Italian online gaming licenses is pushing operators to find an alternative route to get into the market.
The award of 120 new Italian online gaming licenses
I already discussed in several instances about the procedure for the award 120 new Italian online gaming licenses that was meant to be initiated by July 2016. I updated the FAQs on the requirements applicable to online gaming licenses which will cover all the games that can currently be offered under an Italian license i.e.
- sportsbetting,
- horsebetting,
- casino,
- poker,
- skill games, which include fantasy sport and eSports,
- bingo,
- betting on virtual events and
- betting exchange.
However, due to political factors that are not connected to the gaming sector, there have been some delays as to the actual timing of the procedure which might be delayed because of the Italian political uncertainty.
What is the “plan B” for operators?
This delay is pushing operators that want to quickly get into the Italian market to seek the possibility to acquire an Italian online gaming license from existing operators. This indeed an option under Italian current regulations.
As far as the transaction is structured as a transfer of going concern relating to the Italian online gaming business, including the Italian online gaming license of the gaming operator, the license can be acquired. The applying entity shall submit to AAMS, the Italian gambling regulator, the same documents that would have submitted in order to apply for a new license in order to show its suitability to hold an Italian license, but this is not a major issue. There are also some tax costs, but given the limited value of the license itself, they are unlikely to be deal breakers.
Also, entities acquiring an existing license will purchase a license that will have the same duration of a new license since the goal of the Government is to have all the online gaming licenses expiring at the same time on 31 December 2022.
What to do?
If you don’t want to risk a delay in the entrance in the Italian online gaming market, you should scout the market for opportunities. There are some licenses that are underexploited and the current holders might be interested to sell.
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