Italy Retail Gambling Reform Stalls as Courts Fill Regulatory Gaps
Italy.- 8 October 2026 | www.zonadeazar.com Italy’s land-based gambling reform remains stalled, leaving courts to increasingly resolve issues that lawmakers have yet to settle through a comprehensive framework.
At SBC Summit in Lisbon, industry executives and legal experts warned that the main obstacle is now political rather than technical.
Reform Delayed for a Decade
Discussion around restructuring Italy’s retail gambling network formally dates back around ten years.
Key references appeared in the 2016 Stability Law, yet the market is still waiting for a comprehensive framework covering territorial distribution, opening hours and minimum distances from sensitive locations.
Retail Still Dominates the Market
The delay is particularly significant because land-based gambling still represents around three-quarters of the Italian market, worth more than €21 billion.
While the online sector is moving into a new regulatory framework, the retail network continues operating under fragmented rules and repeated concession extensions.
State and Local Authorities
The model under discussion would see central government determine factors including:
- Network size.
- Outlet density.
- Opening hours.
- Distance requirements from sensitive sites.
Regions and municipalities would then be responsible for local implementation.
The absence of a final agreement continues to produce significant differences between jurisdictions.
Politics Holds Up Reform
Quirino Mancini, Co-Founder and Executive Committee member at IMGL, said it was difficult to imagine any government taking on a major retail gambling reorganisation in the year before an election.
In his assessment, gambling’s political sensitivity is a major reason the reform remains unresolved.
Council of State Steps In
The legislative vacuum is giving courts an increasingly important role.
Italy’s Council of State recently issued a ruling concerning PVRs, physical outlets where customers can add funds to online gaming accounts.
€100 Weekly Top-Up Limit
The court upheld the €100 weekly limit on cash and other non-traceable top-ups made through these venues.
It also maintained the ban on withdrawals through PVRs.
Internet-Connected Devices
However, the Council of State struck down a blanket ban on internet-connected devices inside the outlets.
The court found that an absolute prohibition was disproportionate.
Courts Effectively Shape Regulation
Mancini warned that when the legislature leaves a vacuum, judges inevitably step in and their decisions effectively become part of the regulatory framework.
For operators, this creates uncertainty because court rulings are made case by case rather than through a single coherent industry-wide policy.
Two Regulatory Timelines
HBG Online CEO Davide Diodato highlighted another structural problem.
New online licences operate on a nine-year timeline, while parts of the retail concession system continue to be extended from year to year.
For omnichannel operators, that means planning under two very different regulatory horizons.
Pressure on Small Retailers
The uncertainty is particularly difficult for the small businesses making up the retail network.
Without clarity over future operating conditions, shop owners face greater difficulty making decisions on:
- Investment.
- Hiring.
- Premises.
- Technology.
- Commercial development.
Online Reform Moves Faster
By contrast, Italy’s digital gambling sector is undergoing a major regulatory overhaul.
The new online framework is scheduled to take effect on 13 November, introducing stricter requirements and higher barriers to entry.
Faster Consolidation
Microgame CEO Marco Castaldo described the new online model as a form of “hyper-regulation”.
He said one of its biggest effects will be accelerating market consolidation.
Italy’s top five online operators currently account for around 85% of market GGR, a share that could increase further.
Retail Role Could Evolve
Despite digital growth, panellists do not expect physical gaming outlets to disappear.
Sisal Managing Director Marco Tiso suggested retail could evolve from a simple point of sale into a point of assistance, interaction and customer engagement.
Omnichannel Integration
The traditional customer journey could even reverse.
Historically, many players moved online after first engaging with gambling brands through retail outlets.
Executives believe younger customers may increasingly discover brands online first and later use physical shops as service, community and retention points.
Next Steps or Impact
Italy now faces the challenge of modernising its largest gambling channel while online regulation moves ahead at a much faster pace.
Without a national retail reform, courts, regions and municipalities will continue resolving important issues through fragmented decisions.
The industry is calling for a more coherent framework that allows long-term investment and brings land-based and digital gambling regulation into a more unified strategy.
Editó: @fonta
