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The new Italian online gambling regime sets limitations to payments originating from retail shops, the so-called PVRs, that need specific arrangements to be solved.
The upcoming new Italian online gambling framework is meant to introduce major changes for operators as well as payment providers.
Indeed, Italy is a country where payments in cash are still very widespread, also to make deposits to online gambling and betting accounts. Consequently, many operators have been relying on large networks of PVRs which normally are tobacco shops, bars and other kinds of retails shops that sell to players top up cards to transfer credits to their accounts on operators’ online gambling platforms.
The concern of authorities is that such Italian gambling payments in cash are used for money laundering purposes. That’s why there are already some restrictions obliging operators to allow such payments only if the player already sent to the operator the copy of his ID and such identification document has been verified and validated.
As an additional measure, the new regime limits to EUR 100 the amount of deposits that can be performed per week through PVRs in cash or through other non-traceable payment means (e.g. other vouchers), while such limit does not apply for instance in case of deposits performed using credit cards.
This restriction might have a severe impact on operators that heavily rely on payments in cash. However, the exceptions to such limitation are relevant. Indeed, the provision applies only to amounts in cash that are directly transferred to gaming accounts. On the contrary, it does not apply to amounts transferred for instance to e-wallets that in any case shall comply with general anti-money laundering laws which currently limits transfers in cash to EUR 5,000.
The solution is not so simple as described since it requires to set up complex arrangements with the PVRs acting as agents of the payment providers. However, it is definitely feasible and it can have a considerable benefit for the business of gambling operators, especially new entrants in the market that can use retail shops to also make the public aware of their brands.
On the same topic, you may read the following article “New Italian Rules on the Online Gambling Regime and Licenses Approved”.
