Share This Article
Stricter sanctions coupled with instructions issued by the gaming regulator on how to treat terminals might lead to different reactions in the market.
Italy has been traditionally a country where the online offering of games has been of two different kinds. The pure online offering to individuals connecting with their own laptop or mobile device has been accompanied by terminals/computer (the so called “totem“) located in public places (e.g. bars, cafes, restaurants, hotels etc.) connecting to both Italian online licensed and foreign licensed gaming platforms.
This practice has been challenged in several instances since land based operators considered it as an unfair competition to their products for which they hold an Italian land-based license and whose tax treatment is higher than the one applicable to online gaming. Indeed, this activity does not have to be confused with video lotteries and AWPs which are run under a specific land-based license.
The sanctions introduced against gaming terminals
Because of such scenario, the Italian Government has already tried to challenge such practice introducing measures against gaming terminals connecting to both Italian online licensed and foreign licensed gaming platform. Likewise the license agreement regulating Italian online licenses expressly prohibits the offering of games in public places also by means of devices that allow the Internet connection.
But, in order to further dissuade such practice, the so called Stability Law, as interpreted by the Italian regulator, has provided that the prohibition applies to any device made available at public places allowing the connection to both
- gaming platforms run by online licensees, entities authorized to the offering of remote games and entities without any Italian license/authorization and
- platforms allowing the offering of promotions (e.g. prize promotions)
sanctioning such practice with a fine between € 50,000 and € 100,000 to be issued against the entity running the platform and a fine of € 20,000 against the owner of the device connecting to the platform and the owner of the shop where the terminal is located.
The approach requested by the gaming regulator
The Italian gaming regulator now issued a bulletin circular requesting that if devices breaching the prohibition above are identified they have to be seized and the sanctions above have to be issued against “whoever allows such devices a gaming activity in strict sense” presuming that the shop owner is the one that installed the device.
What are the “grey” areas of such prohibition?
The above prohibition might lead to uncertainties as to whether the prohibition is applicable if the devices (e.g. tablets) are for instance “rented” by the public place to its customers. The regulator seems to have a strict approach on that, but the matter has to be reviewed on a case by case basis.
Likewise, apart from the usual issues relating to the potential challenges of the Italian licensing regime, further challenges might arise from the compatibility of the above measures limiting the offering of promotions with the principles set forth by the EU eCommerce Directive.
Follow me on LinkedIn – Facebook Page – Twitter – Telegram – YouTube – Google+
