Italy’s long-delayed reform of its land-based gambling sector is unlikely to move forward before the country’s next general election, leaving courts increasingly responsible for resolving regulatory disputes while the online market prepares for a new licensing regime.
Industry representatives discussing the Italian market at the SBC Summit in Lisbon said the political sensitivity surrounding gambling continues to obstruct a comprehensive reorganisation of the retail network.
Quirino Mancini, co-founder and executive committee member of the International Masters of Gaming Law, said the prospect of a government attempting a major retail reform in the year leading up to an election appeared remote.
The delay is significant because retail gambling still represents around three-quarters of Italy’s gambling market, with the segment worth more than €21 billion. Italy’s online industry, meanwhile, is moving towards its redesigned regulatory framework, with the transition to the new system scheduled for 13 November.
Retail reform remains unresolved after a decade
Plans to restructure Italy’s physical gambling network can be traced back to the 2016 Stability Law, but a nationwide settlement has still not been implemented.
The intended framework would divide responsibility between national and local authorities. Central government would determine matters such as the size and density of the gambling network, permitted opening hours and minimum distances from sensitive locations, while regions and municipalities would oversee local implementation.
Existing regional rules continue to play a major role in the market. Italian administrative courts have repeatedly dealt with disputes involving minimum-distance requirements for gambling venues, including rulings concerning Lazio and other regions in 2026.
Operators argue that the absence of a unified framework creates uncertainty for businesses that must make investment and employment decisions while retail concessions continue to be extended on a short-term basis.
Davide Diodato, CEO of Novomatic-owned HBG Online, highlighted the contrast with the online sector, where the new concessions operate on a nine-year timeframe. Retail businesses, by comparison, continue to face repeated annual extensions.
Sisal managing director Marco Tiso also pointed to the age of the existing retail framework, arguing that physical gambling remains governed by rules developed for a market that looked substantially different two decades ago.
Council of State reshapes PVR rules
The regulatory gap has become particularly visible in the dispute surrounding Punti Vendita Ricariche, or PVRs, physical outlets where customers can add money to online gambling accounts.
On 30 September, Italy’s Council of State issued rulings addressing several elements of the PVR regime introduced as part of the country’s online gambling reform.
The court upheld the €100 weekly limit on cash and certain non-traceable account top-ups and maintained the prohibition on customers withdrawing gambling-account funds through PVR outlets.
However, it overturned the general prohibition preventing PVR locations from providing internet-connected equipment. The court found the restriction disproportionate because it effectively prevented internet cafés from operating as PVRs.
The Council of State also confirmed that the new framework could not immediately be imposed on operators working under technically extended concessions before completion of the new online concession process.
The case illustrates how judicial decisions are increasingly defining practical operating rules in areas where political reform remains unfinished.
Online overhaul accelerates consolidation
While the retail sector waits for reform, operators are adapting to a significantly more demanding online regime.
Microgame CEO Marco Castaldo described the new system as highly complex and expects the additional regulatory burden to accelerate market consolidation.
Italy’s five largest online operators already account for around 85% of gross gaming revenue, according to figures discussed during the SBC Summit panel. Industry executives expect that concentration to increase as larger companies acquire competitors and smaller operators struggle to achieve sufficient scale.
The broader online reform has already increased barriers to entry and removed the ability to operate multiple skins under a single concession, contributing to expectations of further consolidation across the regulated sector.
Stake Italy country director Fabio Bufalini also raised concerns about competition from unlicensed operators, particularly because regulated companies face strict advertising restrictions while offshore brands can continue promoting bonuses through social media.
Retail expected to evolve rather than disappear
Despite the regulatory problems, industry leaders do not expect physical gambling outlets to become irrelevant.
Instead, operators increasingly see stores evolving from traditional points of sale into locations offering customer assistance, social interaction and support for an increasingly digital player base.
The relationship between the two channels could also reverse. Historically, retail shops frequently introduced customers to online gambling products. Younger customers are now more likely to encounter operators through digital content, products or online communities before interacting with a physical venue.
That could transform retail outlets from an acquisition channel into a retention and customer-service tool.
For Italy’s operators, however, that shift is developing while the two sides of the market remain governed on very different timelines. Online gambling is entering a new long-term concession cycle, while the retail sector continues to wait for a national settlement first proposed a decade ago.