Is the Italian Gambling Industry Slowing Down?
Over the past ten years, revenue from gambling in Italy has doubled. Now, new reports are surfacing that the gambling market in Italy is finally be slowing down. Business was booming for the Italian gambling industry. What can we expect over the next ten years?
It’s still a good time for both land-based and online gambling companies in Italy. Let’s take a look at the increase in gambling revenue over the years, and what has caused the industry to plateau.
Gambling Revenue Doubles in Italy Over the Past Decade
Gambling has been a part of Italian culture for thousands of years. Casinos first opened here in the 1700’s, yet they didn’t gain significant popularity until the 1980’s. Today, nearly 30% of Italians claim to be occasional gamblers.
Italy’s gambling industry has more than doubled over the past decade. In 2008, Italy reported a gambling turnover of €47.5 billion. A recent report claims the industry earned more than €101.8 billion in 2017. It’s a staggering increase over a very short period of time.
Around €10 billion went directly to the government in 2017, and another €8.6 billion to the different gambling companies operating here.
2018 marked a slow year for the industry with just €1.5 billion earned in gambling revenue. Unfortunately, 2019 is off to a similar start. The government here has recently banned all forms of gambling advertisements and began implementing higher taxes, and some feel the industry is in trouble.
Will the Italian Gambling Industry Bounce Back?
Italian lawmakers have made it clear they are cracking down on the gambling industry. The marketing ban on gambling has seriously hurt both land-based and online companies and the higher tax rates are pushing many bettors away.
It’s unclear what the future holds for the Italian gambling industry. For years, this country had the biggest market in the world. The fact that gambling has earned the government so much revenue might push them to begin loosening their laws.
As of February 2019, online and land-based gambling companies now face a 20% tax rate and may soon be forced to close shop.
Italy has to realize how valuable their gambling industry is. In some cases, entire communities rely on the revenue earned from gambling. With enough pushback, they may rethink their approach to gambling regulation.
2019 Online Gambling Laws in Italy
Italy completely revamped their online gambling laws in 2006. Before then, foreign gambling sites in the country had free-reign to operate inside the country with very little restrictions. The laws changed for the next few years and by 2011, all forms of online gambling were legalized.
Online gambling sites in Europe can still operate inside Italy after receiving a license from the government. Today, most of the top internet gambling sites in the world are available here.
As we mentioned earlier, the increased tax rate for online gambling operators in Italy could have a major effect. Some sites may choose to leave the market. Others may decide to wait out the storm for the government to lower these taxes.
The Italian gambling industry has made some giant strides over the past decade. New laws set in place could turn that trend around. Only time will tell what the industry will look like in another ten years.
Do you think Italy’s gambling market will thrive in the future? Will the government here change their laws to help stop the industry from plateauing? Tell us what you think in the comment section below.
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