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The Italian Regional Administrative Court (TAR) of the Lazio Region upheld a significant sanction imposed by the Italian Communications Authority (AgCom) concerning the ban of gambling advertising in Italy through affiliate agreements.
This ruling Decision No. 13241/2024, carries profound implications for future gambling deals in Italy.
The breach of the Italian gambling advertising ban through affiliate agreements
The case revolves around Vincitù S.r.l., an online gambling license holder, which was fined EUR 388,453.93 by AgCom (Resolution No. 121/24/CONS) for violating the Italian Gambling Advertising Ban. This ban, codified in Article 9 of the Italian Law Decree No. 87/2018 (commonly known as the “Dignity Decree”), prohibits all forms of advertising, sponsorship, and promotional communications related to gambling with cash winnings.
AgCom’s investigation, prompted by a police inspection, unearthed multiple promotional and affiliation agreements at Vincitù’s headquarters. Specifically, AgCom identified 30 promotional contracts termed “agreements for the promotion of remote public games on behalf of the concessionaire Vincitù S.r.l.” and 20 affiliation contracts.
Key findings and implications of the case
Among the promotional contracts, two were identified as constituting advertising communications, particularly those with Top Ads, which promoted Vincitù’s gambling sites via content creator Spike Slot on social media. The remaining 28 contracts did not produce evidence of illegal promotional content. However, within the affiliation contracts, it was found that many, except five with intermediary companies, violated the Italian Gambling Advertising Ban. These violations included tracking links used to identify new players from affiliate websites, which facilitated the calculation of commissions based on player deposits and bets.
The TAR’s decision to uphold AgCom’s sanction confirmed several critical points:
- Vincitù’s Violation: The court validated AgCom’s findings that Vincitù’s promotional activities breached the Italian Gambling Advertising Ban.
- Broad Scope of the Ban: The ruling reinforced the extensive reach of the Italian Gambling Advertising Ban, emphasizing its application to all forms of promotional content.
- Platform Responsibilities: The decision highlighted the obligation of major platforms to implement robust organizational systems, including automated tools and artificial intelligence, to ensure compliance with the ban.
Business Transactions and Compliance
Gambling operators’ affiliation agreements, both involving gambling-related content, will need careful structuring to comply with the Italian Gambling Advertising Ban. The ruling underscores the necessity for Italian gambling operators to:
- Review Contracts: Ensure all promotional and affiliate agreements adhere to the legal framework established by the Dignity Decree.
- Implement Monitoring Systems: Develop and deploy advanced monitoring and compliance systems to prevent any inadvertent violations.
- Content Regulation: Carefully curating content that informs on the gambling products and services to ensure it does not contravene the advertising ban.
Conclusions
The TAR’s decision to uphold AgCom’s sanction against Vincitù marks a significant precedent in the enforcement of the Italian Gambling Advertising Ban. This ruling serves as a crucial reminder of the importance of stringent compliance with local advertising laws, also from a formal standpoint considering that agreements that produce effects to Italian audience shall comply with the limitations set forth by the Italian gambling advertising guidelines.
If you want to know more on how affiliate agreements shall comply with the Italian gambling advertising ban, you can read the following article “How affiliates are impacted by the Italian gambling advertising ban“.
