Italy is one of Europe’s biggest online sports betting and casino markets, yet in recent years has faced several inflection points. 

High taxes, even higher licensing fees alongside advertising bans have seen an exodus of many operators, leaving just a handful of large operators eating up a large proportion of market share. 

But with GGR of around €21.6 billion in 2024, Italy still holds significant potential for any operator looking to enter the fray. Sure, licensing costs around €7 million, but if those barriers to entry are overcome, the spoils are access to an engaged audience of sports fans who are used to a strong gambling culture. 

Francesco Papallo, Regional Director for Italy at Altenar, told SBC News that despite some of the challenges, Italy is still regarded as a strong and stable market despite some of these well documented challenges.

“Italy is one of the biggest markets in Europe and has a long tradition of sports betting,” he said. “And because of the regulation, it’s also considered a solid betting market managed by the regulator, ADM. Because of that strength, they can guarantee transparency and stability. This makes the operator comfortable and to see in this market as a longer term investment.”

The Italian advertising ban was introduced in 2019 with the €7 million licensing fee coming into force earlier this year, the number of operators has dropped from around 80 to around 35. 

Yet Papallo outlined that while certainly restrictive, operators have found ways to grow their business.

“We have seen the biggest operators in Italy continue to grow, while the minor operators had to find other ways to develop their business,” he noted. “One example could be the use of tipsters. But it’s clear that the brands and operators that have applied to the new license are those brands which have a very strong brand identity. Those operators will not face any issue, even if there is that advertising ban.”

Though direct advertising in TV radio and online are indeed banned, operators rely on their affiliates, and Papallo highlighted how this can be a highly effective tool.

“Using tipsters is the one of the ways operators have been finding solutions in the last two or three years. But there are many other solutions too, like affiliate partners. Also, those operators that have retail operations can use that strategy to have retail and online as an omnichannel solution to propose to the players.”

Solutions to difficult challenges

With all the aforementioned difficulties in Italy, margins can be razor thin and maximising profitability from operations is essential to offset those hefty fees and taxes. 

Papallo stated that Altenar can be the ideal partner in this regard, offering the technology and capabilities for operators to trade at a profit and engage with players. 

“Altenar is designed for rapid integration,” said Papallo. “We have 24/7 risk management and we have a dedicated team for Italy which supports the operators in compliance and any other sort of question that they can raise. 

“We work worldwide, so we can bring our global experience to the country. Another strength of the company is that our technology offers stability and lots of flexibility, so we can provide long term growth to the operator. One example is in Italy, where we have recently introduced the retail operation. 

“With this technology, we can move on in different areas in this country.

Retail still plays an important role in shaping Italy’s betting market. Of the €21.6 billion GGR in 2024, €16.5 billion of that came from the retail sector – though online is growing at a much faster rate. 

Altenar can adapt to the specific needs of each market is live in just as comfortably as it is bringing new ideas into those markets. 

As a global supplier, it has expertise from all around the world that it can bring to Italy to help innovate in a market that reached maturity long ago. 

As Papallo explained: “The developments we carry out at Altenar are targeted and built on international experience. This allows us to bring innovation to the Italian market.”

Ultimately for Altenar it is about finding and delivering engaging content and solutions for Italian players, by providing localised content that players want to use. 

Papallo outlined some of the biggest user demands in Italy, noting: “The main sport is of course football and players want a really easy-to-use frontend. Players want a wide range of markets and that’s why we at Altenar provide our integrated feeds so we can engage with the players the best way we can.”

Online and mobile betting is growing quickly in Italy and Altenar is ready to take advantage of this growth, leveraging its local expertise and global experience. 

Papallo concluded: “We can see how the mobile device is becoming more popular so we need to guarantee a personalised experience to the player. They demand more features like bet builders and player markets and this will be key for the future as 90% of total turnover is coming from mobiles moving forward.”