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The Agency of Customs and Monopolies (ADM) published the tender notice in the European official gazette on December 18, officially kicking off the procedure for awarding the new nine-year online gaming concessions.

The conclusion of the standstill period for the technical rules decree with the European Commission and the State Council’s opinion last month marked the end of a lengthy preparatory stage for the tender.

According to Ministry of Economy and Finance’s (MEF) estimates, around 50 applications are expected. That would generate some €350m in new revenues for the Italian state, as each concession is priced at €7m.

But not all analysts agree with the projections from Via XX Settembre, the headquarters of the MEF. 

According to a study by CGIA of Mestre and As.Tro, the actual number of new licences issued could be as low as 30, generating just over €200m in new revenue. 

The study suggests that the ongoing reorganisation of the online gaming sector will lead to a significant downsizing of the industry overall.

Currently, 81 operators hold licences for online gaming in Italy, with 54 Italian and 27 foreign companies participating in the market. 

Although the new tender does not impose a maximum number of concessions (each operator can acquire up to five), the one-time fee of €7m per licence is expected to discourage applications. 

As it stands, 18 licensees account for 85 percent of gross revenue in the Italian market, with annual volumes exceeding €50m. Only 30 of the 81 licensees have annual revenues of at least €20m, with the more than 50 licensees collectively accounting for just 5.5 percent of gross gaming revenue (GGR) more likely to exit the market than renew due to insufficient scale. 

In addition, there are further regulatory changes that will reshape the industry.

Among them is the reduction in so-called top-up outlets (PVRs) from 60,000 to 25,000–30,000 and the elimination of independent website operators (or skins). Under the new regulations, only concessionaires will be authorised to manage websites and apps, which will serve as the sole access points for gaming services. 

These changes are expected to streamline the market, concentrating activity among a smaller number of large operators while phasing out smaller players and intermediaries.

According to the terms of the tender process, applications must be submitted by May 30, 2025. The entire process will take nine months from the tender’s publication.

Applicants must demonstrate significant experience in managing and operating gambling, including online gaming, within the European Economic Area (EEA). Legal or operational headquarters must be located in the EEA with a valid operating licence. Total revenues must exceed €3m over the past two fiscal years. 

Each participant may be awarded a maximum of five concessions. Participating companies must submit an irrevocable declaration of commitment to pay €7m for each requested concession. Payments will be made in two instalments: €4m upon award of the concession; and €3m upon effective launch of the gaming services. 

The provisional guarantee to join the tender, provided as a deposit or surety bond, amounts to €750,000 and must be issued by an authorised bank, insurance company or registered financial intermediary. The final guarantee totals €3.7m for 2025, corresponding to 10 percent of the procedure's estimated value (€37.1m).

Operations must begin within six months of the concession’s issuance. 

According to sources at the regulator consulted by 91ÌìÌÃÔ­„“ GamblingCompliance, the evaluation of applicants' documentation by the awarding committee will be quick, as the process could be concluded just weeks after May 30, 2025, the deadline for bid submissions.

Italy’s current online gaming concessions are set to expire on December 31, 2024. 

But ADM, acting as the contracting authority, will authorise a technical extension for operators to continue their activities until the new licences are awarded. 

The operators will have to provide the required guarantees for their activities, valid for part of the upcoming year, as well as pay the pro-rata share of the concession fee corresponding to this period.