How Italy’s New iGaming Regulations Are Reshaping the Market

Italy’s online gambling market is undergoing a significant transformation as new licensing rules and stricter regulatory requirements begin to take effect. With higher entry barriers and a stronger emphasis on compliance, the competitive landscape is shifting toward consolidation and long-term sustainability.

Rising Costs and Fewer Operators

One of the biggest changes is the sharp increase in licensing fees, which have surged to €7 million. Industry observers expect the number of licensed operators to fall from 81 to fewer than 50. While suppliers such as game studios are less affected, operators face higher costs and tighter margins.

“Already 46 operators have applied, but the final number will be much lower,” explained Fabio De Martino, account manager at RubyPlay, during a recent SiGMA Italy podcast. “This will tighten the market and push larger operators into stronger positions.”

RubyPlay, which entered the Italian market in early 2025, sees this as an opportunity to strengthen partnerships with leading operators. De Martino noted: “Like any crisis, some see problems while others see opportunities. RubyPlay is well-structured, well-financed, and performing strongly.”

A Market with Deep Cultural Roots

Italy is often compared to the UK in terms of maturity, but cultural differences set it apart. Gambling has strong ties to land-based traditions, particularly slot machines in bars. “High-quality slots perform well anywhere, but in Italy, games that replicate physical experiences resonate strongly,” said De Martino.

This land-based heritage continues to drive online adoption, particularly in regions such as Sicily, Campania, and Lazio, where more land-based players are moving online.

Balancing Trust and Innovation

While RubyPlay focuses on digital channels, De Martino emphasized the importance of retail venues for player trust. “Italian players trust physical outlets. They know that if they win, they will be paid. With online advertising restrictions, operators are turning to retail presence, like stadium sponsorships, to keep visibility.”

He also pointed out the higher return-to-player (RTP) rates online, typically 94–96%, compared to 75–80% in land-based machines, as a key driver for online growth.

Responsible Gambling and Future Outlook

Regulatory reforms have also earmarked 0.02% of GGR for responsible gambling initiatives. De Martino welcomed this move, noting it strengthens consumer protection while still allowing room for innovation. “We continue to launch new games and features, ensuring compliance while driving creativity,” he said.