Italy’s Custom and Monopolies Agency (ADM) has announced that starting June 1, 2024, new regulations will be enforced regarding bookmakers’ bonus management and the handling of palpable errors. This move addresses two significant areas of contention that have persisted since the regulated market’s launch in 2006.
New Regulations on Bonus Management
The ADM has established definitive rules through a specific decree on Bonus Management, detailing legislative criteria for the practical use of bonuses. These guidelines cover terms and conditions, payment methods, and the application of bonuses for ‘one-off’ tax purposes.
Under the current rules, Italian bookmakers face a ‘bonus limitation,’ restricting them from awarding more than a €100 bonus per customer on a fixed-odds wager. However, operators have expressed the need for a clear methodology to calculate the cost of these bonus rewards for tax and auditing purposes.
To address this, the ADM has clarified that “both the bonus used and any stake placed by the player will be included in the calculation of the amounts wagered and winnings paid.” This settlement aims to provide transparency and consistency in how bonuses are taxed.
Handling Palpable Errors
The ADM’s upcoming decree also introduces a regulated process for addressing palpable errors. These errors have historically led to numerous customer disputes, often requiring resolution through the legal system. The new rules aim to end such litigation by providing a systematic correction process.
Bookmakers are now required to submit a correction request through an application system, detailing the operator and the challenged odds. Upon approval, the odds will be recalculated based on the “market average, as determined through the national tote.” This new process is expected to streamline error corrections and reduce legal conflicts.
Ongoing Reorganisation of Italian Gambling
These new regulations operate independently of the broader ‘reorganisation of Italian Gambling’ currently undertaken by the Italian government. Recent developments in this reorganisation include the introduction of €7 million licenses for a nine-year term for online concessions, a significant increase from the previous €200,000 fee. This change is intended to reflect market dynamics dominated by major operators such as SNAI, Lottomatica, and Flutter Entertainment.
The Ministry of Finance (MEF) has endorsed the new fee structure to resolve long-standing legal disputes over licensing and to reduce the number of operators in the market. Additionally, the MEF is negotiating with Italy’s 20 regional governments and 100 municipalities to implement federal reforms related to land-based gambling venues.
These comprehensive reforms signify Italy’s commitment to refining its gambling regulations, ensuring a more transparent and consistent environment for both operators and players.
Source: “ADM settles Italy’s betting rules on bonus management & palpable errors”. SBC News. May 30, 2024.