Italy’s Black Market Online Gambling Worth Over $26 Billion
Posted on: October 20, 2023, 07:39h
Last updated on: October 20, 2023, 07:39h
An Italian sports media outlet, La Gazzetta dello Sport, recently reported that the black market online gambling industry in Italy has reached a staggering value of over $26 billion. This exponential growth is largely attributed to the country’s strict ban on gambling advertisements. The European Gaming and Betting Association (EGBA) warns that other nations should take note of this alarming trend.
The media outlet reported that the total turnover of illegal gambling in Italy amounts to €25 billion (US$26.47 billion). This not only negatively impacts the consumer sector in terms of funds and jobs, but it also results in a loss of approximately €1 billion (US$1.05 billion) in tax revenue for the government.
In response to the report, the EGBA highlights the efforts made by Italy’s Customs and Monopolies Agency (ADM) to combat the growth of the black market. However, the challenge seems to be never-ending.
The ADM has already ordered the blocking of 9,800 unlicensed online gambling websites in 2023, a significant increase from the 400 blocked last year. This drastic rise indicates the prevalence of illegal online gambling in the country.
Ad Ban Is Driving Increase in Black Market Activities
The EGBA reveals that the amount wagered through offshore platforms in Italy is equivalent to the total combined revenue from regulated online gambling in eight other European Union (EU) countries. The thriving black market in Italy is primarily attributed to the strict ban on gambling advertisements, which inadvertently favors illegal operators. The EGBA emphasizes the need for a reevaluation of the existing regulatory framework.
“Italy’s online black market is now one of the largest due to the country’s strict advertising regulations for licensed gambling operators,” said EGBA Secretary General Maarten Haijer. “This ban clearly favors the black market.”
The ban on gambling advertisements in Italy makes it difficult for consumers to differentiate between licensed Italian gambling websites and unlicensed ones. Furthermore, despite the increased number of blocked sites, it is evident that the current enforcement actions against black market operators are insufficient.
One significant concern arising from this situation is that many Italian players are resorting to gambling on websites located outside the EU. According to the EGBA, these offshore platforms may not provide even the most basic consumer protection, putting Italian gamblers at risk.
Lessons for Other Countries
The consideration of gambling ad bans in the UK, Ireland, Australia, and other nations raises concerns. Italy’s experience serves as a warning that strict ad bans can unintentionally contribute to the growth of illegal gambling, posing risks to consumers.
The UK, in particular, faces an increased risk following potential gambling ad bans. The implementation of affordability checks and additional restrictions presents a dual threat.
On one hand, it may push players towards unregulated platforms that do not have such checks in place, exposing them to potential harm. On the other hand, the regulated gaming industry in the UK may suffer significant setbacks.
Increased restrictions could drive legitimate operators away and diminish the industry’s economic contributions. Striking a balance between consumer protection measures and maintaining a thriving regulated gaming sector presents a delicate challenge for policymakers.