The EGBA has issued a warning about the grave implications of Italy license proposals.

New rules in Italy may force over 70 licensed operators to leave, paving the way for an underground gambling market warns the European Gaming and Betting Agency.

The proposed €7m license fee is a drastic 35-fold hike from 2018 €200,000 jeopardizing player protection.

EGBA notes the potential cut in operators from 91 to 15-20 could escalate the black market, posing serious risks for player safety.

 

[CR7]

The concerns raised by the European Gaming and Betting Agency (EGBA) regarding the new rules in Italy are indeed significant. The proposed €7 million license fee represents a drastic 35-fold increase from the previous year's fee of €200,000. Such a substantial increase puts licensed operators in a difficult position, as it may force over 70 of them to leave the Italian market.

One of the major implications of this exorbitant fee is the potential jeopardy it poses to player protection. In order to cover the costs of such a high fee, licensed operators may resort to reducing their spending on essential measures aimed at ensuring responsible gambling and player safety. This could have serious consequences for consumers, as regulatory oversight and player protection may be compromised.

Furthermore, the potential reduction in the number of licensed operators, from 91 to just 15-20, is likely to have unintended consequences. It would create a void in the market that could be exploited by unlicensed and unregulated operators. The black market for gambling would likely thrive under these conditions, which poses significant risks to player safety. Without proper regulation and oversight, players may be exposed to fraudulent activities, unfair gameplay, and even potential harm.

The EGBA's warning about the "grave implications" of these license proposals is, therefore, not unwarranted. It highlights the potential negative consequences of the Italian government's decision and emphasizes the need for a more balanced approach that protects both operators and consumers. Striking a balance between reasonable fees for operators and maintaining effective player protection measures is crucial to ensure a safe and secure gambling environment in Italy.