This Decree currently implements the measures provided for by Article 12, par. 1 (f) of the Decree Law of 28 April 2009, no. 391, better known as ‘Decreto legge per l’Abruzzo‘ to address the state of emergency determined by the seismic events which took place in the Abruzzo region in April 2009. It amends the current regulation of remote skill games, introduced in 2008, by introducing new types of games such as remote fixed odds games of chance and card games not organised in tournament form.
In recent years, the regulatory authority, l’Amministrazione autonoma dei monopoli di Stato (AAMS), which forms part of the Ministry of Economy and Finance, started a progressive and regulated opening of the gambling market, launching tender procedures to offer new games through innovative protected channels.
The legalisation of such games is not aimed at repealing the general gambling ban which still applies to games of chance – including poker and other cash games – carried out in terrestrial premises (with the exception of the four licensed casinos). The opening process will only strictly regulate such games carried out pursuant to a stategranted licence (concession). In fact, in order to offer and collect takings in such games, operators must be licensed in Italy or apply for a concession, according to the next tender procedure which will be launched this year.
Remote fixed odds games of chance are defined as games in which the results have a predetermined probability – which is invariable – and where the relation between potential winning and the price of participation is well known by the player. Remote card games are defined as games in which a card game is virtually reproduced. In this case, the gaming methods are rather solo-playing than competition playing. The provisions set out a detailed technical authorisation process, which includes a certification obligation for the gaming platform and its interconnection to the AAMS data processing centralised system, for control, validation, registration and payment of the relevant tax. The price for participation rights to remote skill games may be up to a maximum sum of €250. For fixed odds games of chance and card games not organised in a tournament form with remote participation, the initial price for participation – including the following increases – shall be limited to a maximum of €1,000.
The Decree confirms the applicable tax rate for remote skill games at 3% of the revenue, as charged each day by the centralised system. The relevant prize money paid out to players shall be at least 80% of the revenue.
A new flat rate tax is set forth for remote fixed odds games of chance and card games, which applies to the sums played, for each game and is equal to 20% of the sum that, based on the rules of the game, is not returned to the player (i.e. GPT). In this case, the prize money paid out to players shall be at least 90% of the revenue, determined in accordance with the gaming methods.
The choice of the legislator to adopt specific rules to target online gambling – and thus to gather relevant tax revenues – is clear. It is now time to wait for relevant implementing measures to be issued by the AAMS, for their concrete introduction on the market.
It is a shame that, once again, the opportunity to enact a novel, organic and harmonised gambling code has been missed – there is a considerable number of amendments , which is ever increasing. As a result, relevant case law may develop faster than all the legislation. Other licensed operators, such as offline gaming casinos and VLTs, both covered by a different legal and regulatory regime, may challenge the above provisions.
On the other hand, recent regulations made it compulsory for internet network service providers and managers to block remote access to operators without a permit and concession, offering remote games, lotteries, betting or pools with cash prizes to Italian customers. The AAMS operates this system by black-listing the service providers of those operators without a permit or concession offering online gambling.
Given the great success of skill games in Italy since they were launched in 2008, online gaming turnover amounted to €3.7 billion in 2009, with remote skill games and sports bets representing 94.4% of it. Needless to say, there are huge expectations in relation to the results of these games and their implications.
Valérie Peano
1. converted into law, with amendments, by Article 1(1) of the law of 24 June 2009, no. 77 and published in the Official Journal of 27 June 2009, no. 147.
2. Sections 718 – 721 Italian Criminal Code.