In November 2025, Italy decisively overhauled its online gambling framework, compressing a market of over 400 domains into just 52 licenses. This radical transformation, enacted by Italy’s customs and monopolies agency, ADM, aims to bring transparency, greater compliance, and a safer gambling environment to the iGaming sector. With 52 licenses now held by 46 operators, the landscape has shifted dramatically, favoring established giants while leaving smaller players struggling to survive.
The regulatory reset is described by policymakers as modernization, but for some operators, it feels more like an extinction-level event. The changes have sparked a wave of consolidation and rebranding, with larger firms adapting to the new rules and smaller ones disappearing altogether. Where previously a license fee was around €200,000, the new cost has soared to €7 million, alongside multimillion-euro guarantees, raising the barrier to entry significantly.
Quirino Mancini of WH Partners notes that the change was strategically designed to favor larger operators, making the market easier to control and regulate. As a result, fewer than 50 licenses are now held by long-standing incumbents, with Stake as the only new entrant. This concentration is a deliberate move towards an oligopoly where well-capitalized firms dominate.
Industry expert Christian Tirabassi observes that Italy’s contraction is one of the most abrupt in any regulated European market. The phase of accelerated consolidation means fewer competitors, leading to larger players with higher compliance and marketing standards. Smaller firms are either exiting or seeking mergers and acquisitions to remain viable. The steep licensing fees and advertising restrictions make Italy a costly market in which only the largest can compete.
Among the few remaining license-holding entities are major players like Flutter Entertainment, which controls brands like Sisal, Snaitech, and Betfair in Italy. This restructuring gives large companies a significant advantage due to their scale and financial ability to manage high compliance and operational costs.
Despite hopes for change, Italy has maintained its stringent advertising ban from 2018’s Dignity Decree, complicating efforts for operators to attract customers legally. Mancini argues that this ban inadvertently benefits the illegal gambling market, as players may turn to offshore, unlicensed sites. He stresses that excessive regulation often pushes consumers away from legal operators, a phenomenon observed across regulated European markets.
The ban remains in place, although operators have found loopholes, such as using alternative domain suffixes to continue advertising legally. However, the environment remains a complex game of cat-and-mouse, with enforcement being inconsistent and operators navigating regulatory gaps.
The new system places a heavy burden on operators, demanding increased investment in anti-money laundering measures, know-your-customer protocols, and responsible gambling checks. This compliance overload is particularly challenging for smaller firms, which often lack the resources for extensive in-house compliance teams or costly outsourcing.
The restructuring also affects the balance between online and land-based gambling. While digital operators grapple with restrictions, those with physical outlets benefit from built-in promotional advantages. Mancini points out that despite advertising restrictions, land-based operators can still engage in physical signage and cross-selling within their venues.
The upcoming land-based tender in 2026, delayed by negotiations between government and regional authorities, remains a critical development. It aims to harmonize rules, including distance from sensitive venues and opening hours.
Although the upheaval is significant, Italy’s iGaming market remains one of Europe’s largest by turnover and tax yield. The forecast for 2025 anticipates a gross gaming revenue of over €5.2 billion, highlighting the market’s potential despite its new structure. Opportunities persist for omnichannel operators, premium brands, and those with capital to explore mergers and acquisitions.
In the long term, the diversity of more than 30 active groups offers stability, while stricter responsible gaming measures are expected to enhance trust and market credibility. Italy’s iGaming reform has replaced a sprawling ecosystem with a tightly controlled oligopoly, where fewer, stronger operators lead the market.
Mancini sums up the situation: “Fewer operators, bigger operators, easier to control, regulate and vet.” The future of Italy’s iGaming sector, particularly regarding advertising and the 2026 tender, will shape whether this restructuring fosters innovation or solidifies the power of current incumbents. Italy remains a heavyweight in Europe’s online gaming industry, now operating on a different level.
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